Long-Term Ground Leases, the Redevelopment Option and Contract Incentives
Ground leased property trades at a discount relative to the fee interest. We explore contractual alternatives that would be Pareto preferred by owners of the leased fee estate and the leasehold interest. The sharing of the value of the residual claim between the owner of the leased fee and the lease...
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| Veröffentlicht in: | Real estate economics 2001, Vol.29 (3), p.451-484 |
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| container_title | Real estate economics |
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| creator | Dale-Johnson, David |
| description | Ground leased property trades at a discount relative to the fee interest. We explore contractual alternatives that would be Pareto preferred by owners of the leased fee estate and the leasehold interest. The sharing of the value of the residual claim between the owner of the leased fee and the leasehold and a lease extension clause triggered by redevelopment can enhance the value of the asset to both parties. The results suggest that employing such contractual terms in ground leases in the United States would lead to outcomes more consistent with the fee simple case. Escalation clauses also have a potential impact on the timing and intensity of redevelopment. |
| doi_str_mv | 10.1111/1080-8620.00018 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 1080-8620 |
| ispartof | Real estate economics, 2001, Vol.29 (3), p.451-484 |
| issn | 1080-8620 1540-6229 |
| language | eng |
| recordid | cdi_proquest_journals_211151280 |
| source | Wiley Online Library Journals Frontfile Complete; Business Source Complete |
| subjects | Building leases Construction contracts Construction costs Contracts Economic models Economic theory Escalator clauses Extensions Ground leases Interpretation and construction Landlords Landowners Long term Present value Real estate developers Real estate development Real estate industry State court decisions Studies |
| title | Long-Term Ground Leases, the Redevelopment Option and Contract Incentives |
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