Uncertainty in property valuation: the pricing of flexible leases
Series: Journal of Corporate Real Estate ; 3(1), 17-27(11)Publication details: 2001Subject(s): Summary: Looks at changes since the 1980s in the treatment of capital and rental valuations. During the 1980s the market was notably uniform. Most leases were granted for a 25-year period, and rental valuation could be made by direct comparison on a pro-rata basis. Similarly, capital valuation was largely carried out by direct capital comparison. However, in the late 1990s, with emergence of more uncertain market conditions, tenants began to demand more flexible lease contracts. Argues that this new uncertainty in the market can be built into pricing models by using probability-based models. Provides examples.| Item type | Current library | Call number | Copy number | Status | Date due | Barcode | |
|---|---|---|---|---|---|---|---|
| Journal article | London Journal article | ABS63787 (Browse shelf(Opens below)) | 1 | Available | 111385-1001 |
Looks at changes since the 1980s in the treatment of capital and rental valuations. During the 1980s the market was notably uniform. Most leases were granted for a 25-year period, and rental valuation could be made by direct comparison on a pro-rata basis. Similarly, capital valuation was largely carried out by direct capital comparison. However, in the late 1990s, with emergence of more uncertain market conditions, tenants began to demand more flexible lease contracts. Argues that this new uncertainty in the market can be built into pricing models by using probability-based models. Provides examples.