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Modern lease monetisations : How to capitalise on market arbitrages to significantly reduce occupancy costs

Author

Listed:
  • Mohr, Bob

    (14643 Dallas Parkway #1000, USA)

  • Godoi, Rodrigo

    (Managing Director, Mohr Capital, USA)

  • Loving, Elizabeth

    (Senior Advisor, Mohr Capital and Director, Mohr Partners, USA)

Abstract

This paper introduces the concept of lease monetisation and details this lucrative strategy, which allows occupiers to generate a significant cash incentive from restructuring their lease to reduce their occupancy costs even further, while securing long-term control of an asset without an ownership interest or investing their capital. This paper explains the lease monetisation process, including the way corporate occupiers can decrease occupancy costs through long-term leases by taking advantage of arbitrage opportunities in the capital markets, the types of properties suitable for lease monetisations and the importance of corporate credit.

Suggested Citation

  • Mohr, Bob & Godoi, Rodrigo & Loving, Elizabeth, 2022. "Modern lease monetisations : How to capitalise on market arbitrages to significantly reduce occupancy costs," Corporate Real Estate Journal, Henry Stewart Publications, vol. 11(4), pages 314-333, June.
    • Handle: RePEc:aza:crej00:y:2022:v:11:i:4:p:314-333
    as

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    More about this item

    Keywords

    lease monetisation; mission-critical facilities; cap rates; investment partner; value arbitrage; profit participation; cash incentives; lease restructure; investment-grade credit;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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