Identifying Risk-Adjusted Indifference Rents for Alternative Operating Leases
AbstractFor some time real estate operating leases have been available to lessees and lessors which have alternative schemes for allocating the purchasing power risk embedded in the rent and operating expense streams. This paper presents a market-oriented model that will allow lessees and/or lessors to efficiently evaluate and compare alternative leases. Using the model it is possible to identify a set of risk-adjusted rents for alternative leases between which the evaluator is indifferent. Knowledge of this set of indifference rents places the model user in a superior position during the lease negotiation process.
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Bibliographic InfoArticle provided by American Real Estate Society in its journal Journal of Real Estate Research.
Volume (Year): 4 (1989)
Issue (Month): 3 ()
Contact details of provider:
Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Web page: http://www.aresnet.org/
Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
Find related papers by JEL classification:
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
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