Contracting and Optimal Rents in Commercial Real Estate Leasing

18 Pages Posted: 28 Jun 2019 Last revised: 2 Jan 2020

Multiple version iconThere are 2 versions of this paper

Date Written: 2018

Abstract

The problem of determining optimal rents in commercial real estate leases (as credit contracts, investments and as part of the supply chain) affects many companies in various industries such as retailing, healthcare, manufacturing, leasing, etc.. The advent of companies such as WeWork, LiquidSpace, ShareDesk; Convene, Impact Hub; Knotel, IWG; etc, complicates issues. This article: a) introduces new models of optimal rents in commercial real estate leasing, b) introduces new models of “contract incompleteness” in commercial real estate leases, and explains the influence of “contract incompleteness” in real estate leases on the determination of optimal rents, c) identifies various transaction costs, agency problems, Behavioral Operation Research issues and risk management costs that are inherent in commercial real estate leasing processes and in contracts. The concepts and models developed in the article can also be applied to equipment leasing and other types of leasing.

Keywords: Commercial Real Estate; Portfolio Management; Complex Systems; Dynamical Systems; Contract Theory; Supply Chain; Sharing Economy; Leasing.

Suggested Citation

Nwogugu, Michael C. I., Contracting and Optimal Rents in Commercial Real Estate Leasing (2018). Available at SSRN: https://ssrn.com/abstract=3410643 or http://dx.doi.org/10.2139/ssrn.3410643

Michael C. I. Nwogugu (Contact Author)

Independent ( email )

P. O. Box 11104
Enugu 400007, Enugu State 400007
Nigeria
2348149062100 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
140
Abstract Views
926
Rank
175,835
PlumX Metrics