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Pricing upwards-only rent review clauses

By: Contributor(s): Language: English Series: Journal of Property Valuation and Investment ; 16(5) 1998, 447-454(8)Publication details: 1998Subject(s): Summary: Analysis of the effect of upward-only rent review leases on rental levels, compared to leases were rental values are allowed to fluctuate freely. Looks at how the upward-only adjustment clause can be priced by simulation, taking into account such factors as expected drift and volatility of rental rates.

Analysis of the effect of upward-only rent review leases on rental levels, compared to leases were rental values are allowed to fluctuate freely. Looks at how the upward-only adjustment clause can be priced by simulation, taking into account such factors as expected drift and volatility of rental rates.