If the market rent exceeds contract rent, what can the leasehold estate possess?

When the market rent exceeds the contract rent, the leasehold estate can possess potential value. This situation indicates that the property is under-rented compared to what the market is willing to pay, which creates an opportunity for the leaseholder to benefit financially.

In practical terms, this discrepancy means that if the leaseholder were to sublease the property or if they were able to negotiate a new lease (or renewal) at current market rates, they could potentially realize greater income. This potential for increased income forms the basis of the leasehold estate's potential value. It suggests that there is significant economic interest in the property that could be capitalized on, which is not reflected in the current lease terms.

While other options might imply certain conditions regarding the leasehold estate, they do not accurately capture the opportunity for financial gain tied to the market conditions.