It almost seems intuitive to provide a discount for the security of having a renter that long, but your explanation of why it may not be is spot on. 

After reading the above comment and your explanation, in a word: NEXT.Why try to catch a falling knife--if you can't get real equity when all is said and done, just pass and go on to the next deal.Good luck.

Reason for asking is that I am trying to understand what a reasonable target rent per unit is for specific geographical areas. 

But I do understand that explanation for it but I'm definitely not a fan of it going forward.

@Patrick Roberts thanks for the explanation this helps.

@Michael Plaks - great explanations as always!

More than that and tenants seems to want justification/explanation based on comparables in the area.

@Chris Clothier thanks Chris for your detailed explanation i did have a great conversation with Ashley 

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No explanation.