Real options in real estate

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    The ownership of real estate comes with different types of flexibility. Land development, for instance, can be postponed, the use of a building can be changed, rents can be adjusted, and lease contracts can be extended or terminated. This chapters provides an introduction into real option models that consider these different types of flexibility. The models are introduced in a simple discrete time framework. The presentation places economic intuition at its centre. This is followed by a more technical discussion of continuous time models. Equipped with an understanding of these models, the chapter discusses studies that test real option models with data from real estate applications.
    Original languageEnglish
    Title of host publicationRoutledge Comapnion to Real Estate Investment
    EditorsBryan D. MacGregor, Rainer Schulz, Richard K. Green
    Place of PublicationLondon and New York
    PublisherRoutledge
    Chapter12
    Pages232-250
    Number of pages19
    ISBN (Print)9781138020788
    Publication statusPublished - 27 Nov 2018

    Fingerprint

    Dive into the research topics of 'Real options in real estate'. Together they form a unique fingerprint.

    Cite this