1.8.1. Market Rent and Highest and Best Use. As discussed in the income capitalization approach section of these Standards, in developing an appraisal for a leasehold acquisition, the appraiser must use the definition of market rental value found in Section 1.5.4.1. 

As part of the development of an appraisal for a leasehold acquisition, the appraiser must determine the highest and best use of the property (as improved) that is the subject of the leasehold. This requirement is critical to the selection of comparable rents used in the valuation process. Where necessary, the appraiser may need to perform a marketability study to aid in this analysis.