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Real options in real estate
| Content Provider | Scilit |
|---|---|
| Author | Gregor, Bryan D. Mac Schulz, Rainer Sing, Tien Foo |
| Copyright Year | 2018 |
| Description | Options are an integral part of real estate investments. Defined loosely, an option represents the flexibility to take an action regarding an asset if this action generates value. If the action does not generate value, then the holder of the option will not take it. Options can be standardised financial contracts related to the purchase or disposal of real estate securities. Such options do not differ from other financial options. But direct real estate investments bring many so-called real options. These options have a real asset underlying them. For instance, the ownership of land allows decisions on what and when to develop. Ownership of a building carries with it options to alter the building, such as the refurbishment of an existing office building or the extension of an industrial warehouse. Operational lease contracts for the use of commercial real estate often contain options, such as rights to cancel or renew the contract or to adjust the rent. Such contractual claims on the use of real estate display option-like characteristics and should be considered as such. Book Name: Routledge Companion to Real Estate Investment |
| Related Links | https://content.taylorfrancis.com/books/download?dac=C2013-0-21108-X&isbn=9781315775579&doi=10.1201/9781315775579-12&format=pdf |
| Ending Page | 250 |
| Page Count | 19 |
| Starting Page | 232 |
| DOI | 10.1201/9781315775579-12 |
| Language | English |
| Publisher | Informa UK Limited |
| Publisher Date | 2018-12-07 |
| Access Restriction | Open |
| Subject Keyword | Book Name: Routledge Companion To Real Estate Investment Architecture Building and Construction Building Real Estate Contracts Options Generate Value Action Generates |
| Content Type | Text |
| Resource Type | Chapter |
