The land-of-investment technique is most useful when equity investors are primarily concerned with which of the following?

The land-of-investment technique is a valuation method that focuses primarily on the return on investment (ROI) from the land component of real estate. When equity investors are concerned with equity capitalization rates, they are looking at how well their investment will generate income relative to its equity cost. This method allows investors to analyze the potential for income generation based on the land's value and its ability to support a profitable venture.

The equity capitalization rate specifically reflects the anticipated return on the investor's equity in the property. It is a critical metric used to assess the performance of real estate investments, especially for those who are primarily focused on the income-producing aspects of the property rather than other factors.

In contrast, while land appreciation rates and building tax shelters may also be significant concerns for certain investors, they do not directly evaluate the property's income-generating ability in the same way that equity capitalization rates do. Gross rent multipliers do not focus specifically on the equity return aspect but rather on the relationship between the gross income and property value. Therefore, equity capitalization rates align best with the purpose of the land-of-investment technique in a context where investors prioritize income potential.