What is considered the primary factor that affects the market rent of a property?

Location is widely recognized as the primary factor influencing the market rent of a property due to several reasons. Proximity to amenities such as schools, shopping centers, transportation, and employment opportunities significantly enhances the desirability of a property. A property situated in a well-regarded neighborhood or an area experiencing growth will typically command a higher rent compared to similar properties located in less desirable or declining regions.

Additionally, location can impact the overall demand for the property. Areas with high demand and limited supply often lead to increased rental prices. The characteristics of a location, including safety, community services, and overall economic conditions, contribute to how much tenants are willing to pay for a rental property. Thus, location not only determines market rent but also influences tenant preferences and decisions.

While building age, type of tenants, and property size can certainly impact rental prices, these factors are often secondary to the significance of location. A newly built property in a poor location may struggle to command high rents, while an older building in a prime location can still attract tenants and achieve a premium rental rate.