TY  - JOUR
AB  - This paper reviews the literature which models lease covenants using option‐pricing techniques, probabilistic measures of risk and the contractual misalignment of incentives. These quantitative models, in conjunction with conventional discounting mathematics, offer ways to gauge the effects on rent of changes to many lease clauses. With the exception of discounted cash flow analysis to adjust rents for leasing incentives, none appears to be used in practice yet. The program has been designed to bridge the gap between academic developments in this field and current practices in rental valuation. The program works from rental values set on benchmark or standard lease conditions in that market and adjusts for different clauses. The program displays all the stages in calculating the effects of each changed clause and operates entirely from parameters set by the user. Trials of this program are described.
VL  - 18
IS  - 2
SN  - 1463-578X
DO  - 10.1108/14635780010324330
UR  - https://doi.org/10.1108/14635780010324330
AU  - Rowland Patrick
PY  - 2000
Y1  - 2000/01/01
TI  - Pricing lease clauses – The prospect of an art becoming science
T2  - Journal of Property Investment & Finance
PB  - MCB UP Ltd
SP  - 177
EP  - 195
Y2  - 2024/04/18
ER  -