Nobody downloaded yet

Declining Lease Lengths in Commercial Properties - Literature review Example

Comments (0) Cite this document
In the paper “Declining Lease Lengths in Commercial Properties” the author provides the scenarios of commercial properties in some countries from an academic perspective. When property rights are distributed, the possibility of controversies arising among the stakeholders needs to be reduced…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.3% of users find it useful
Declining Lease Lengths in Commercial Properties
Read TextPreview

Extract of sample
"Declining Lease Lengths in Commercial Properties"

Download file to see previous pages Researchers have not dwelt on the length of the lease except the reducing average lease lengths in the UK. A term structure of rental rates has been responsible for various lengths of the leases but it has been lacking in market reviews. A market review provides valuable knowledge into the relationship between rent and lease length, creating a balanced rent, depending on rent projections (Rowland, 2002). A lease length may depend on specific landlord needs such as redevelopment in the near future or for creating more space for another business tenant. Normally, landlords’ interests are served through long leases while tenants desire short leases with alternatives of renewal (Rowland, 2000). The possibility of such factors as cost of shifting and the cost of reletting could be crucial in deciding rents and lease lengths. Reletting costs may be borne by either the landlord, if the short lease expires or the tenant shifting premises before the expiry of the lease. These costs may not be transferable but can be reduced with mutual consent between the landlord and the tenant (Rowland, 2000). In a term lease there is no boost to reduce depreciation of the property, thus not securing the salvage value of the property (Miller and Upton 1976, p.766; and Flath 1980, p.253)). Smith and Wakeman (1985, p.903)) discuss how lease provisions may change the incentives for both parties, quoting the use of service leases (in which the lesser provides the maintenance) as a solution of avoiding the lessee’s inclination to ignore the property (Rowland, 2002). The deficiency of interest among tenants to take care of the property has been used randomly in the housing economics literature to state tenure choice (Henderson and Ioannides 1983, p.98)) and the observed reduced rents on lease renewal than new lettings (Hubert 1995, p.631)). Kanemoto (1990, p.7)) thinks that the problem comes in substantiating to a third party (typically a court) that the tenant has misused the property. Various types of contracts for maintenance of property change the possibility of not-suitable standards of maintenance (Rowland, 2002). Benjamin, de la Torre, and Musumeci (1995, p.179)) present a model of under-maintenance by tenants, which compares the current values of owning and leasing property. The difference between the maintenance of property by owner-occupiers and by tenants shows the overexploitation by tenants during the lease, with bad outcomes for the residual value. The authors state different methods to improve upon the leases to reduce or eradicate the effects of the tenant’s provocation to misuse the property, like entering into contracts for maintenance by the owner, providing the tenant an alternative to purchase, deposit security or adjusting the rent as per usage needs (Benjamin, de la Torre and Musumeci 1995, p.184)) (Rowland, 2002). Interestingly, in Northern Ireland, the private investors prefer long lease terms on properties situated in populous locations and depending on the area let properties on strong terms in the agreement (Crosby et al., 2002)). The property market was on the boom during 2002 in Northern Ireland, resulting in easy finance due to reduced interest rates realizing greater syndicate transactions related to the property. These inward investment initiatives like call centers for leading companies, including Halifax, Abbey National and Prudential and software development companies like Northbrook Technology and Fujitsu (Hamilton et al., 2005). ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Declining Lease Lengths in Commercial Properties Literature review”, n.d.)
Retrieved from https://studentshare.org/business/1421195-declining-lease-lengths-in-commercial-properties
(Declining Lease Lengths in Commercial Properties Literature Review)
“Declining Lease Lengths in Commercial Properties Literature Review”, n.d. https://studentshare.org/business/1421195-declining-lease-lengths-in-commercial-properties.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
The Effect of the Economic Downturn on the Properties Industry in South of France: Cote D'Azur , Province
However the downswing in the property markets experienced by those contexts pushed this whole process in a reverse resulting downward mortgage loans, weakening of bank balance sheets and depression of consumer spending (Allen and Carletti, 2009; Nordlundm and Lundstrom, 2011; Woods, 2007).
4 Pages(1000 words)Literature review
The effects of interest rate liberalization to the risk of commercial banks in china
Interest rates are basically used to manage monetary conditions and mobilize and deployed the resources in an efficient and effective manner. Interest rate usually remains the supervision and administration of government. Interest rate is calculated on reduction balancing method.
20 Pages(5000 words)Literature review
Properties of Self :Compacting Concrete using waste rubber tyres as partial replacement for coarse aggregate
This is according to the Market Failure article of 2006 (Ana M, 2006 78). Some of these were reused while others were discarded. The effects of these waste tires are adverse. The discarded tires pile up into huge heaps of waste that are harmful to the environment.
7 Pages(1750 words)Literature review
Commercial Lease
A buyer tenders an offer in writing with a purchase contract and deposit receipt to seller. The seller either accepts the offer or counter offers go back and forth until there is acceptance. This contract, when executed, defines the ongoing rights and obligations of the parties to each other for a period of time.
2 Pages(500 words)Essay
In such scenario, the landlord will be trying to get at maximum terminal dilapidation under the threat of court proceedings, whereas a tenant will be trying to raise as many excuses or objections with an aim to minimise his outlay to the landlord. The landlord will take the help of a surveyor to maximise his claim, whereas a business tenant will be taking the help from his lawyer to keep such a claim at a bare minimum under the law of dilapidations.
10 Pages(2500 words)Literature review
Topic : 'Dabigatran is a relatively new oral anticoagulant. Discuss the medicinal chemistry of the compound including its physiochemical properties, pharmacophore and mode of action'
The drug is taken orally and reaches the intestine. At intestine, it undergoes esterase enzymatic hydrolysis and spontaneous decomposition and releases n-hexanol, carbon dioxide and ethanol along with the
14 Pages(3500 words)Literature review
The Effect of Milling on the Triboelectrification Properties of Flurbiprofen Salts
Triboelectric charging refers to a process by which two neutral surfaces are brought into contact, transfer charges and remain charged upon separation (Greason,
16 Pages(4000 words)Literature review
Quantifying the properties of various types of Megayacht fillers
All custom yacht need surface finishing generally from the largest megayacht to a seafaring dinghy. The following discourse focuses on quantifying the properties of several types of Megayacht fillers that are in use
7 Pages(1750 words)Literature review
The influence of culture conditions on the mechanical properties of agarose hydrogels for cartilage tissue engineering
The nature of the articular cartilage in which has superior characteristics in health scenarios such, as the painful arthritis which is degenerative and costly has created a lot of interest in the mechanical
16 Pages(4000 words)Literature review
Bioinspired tough structures
The structures with such properties and performance consist of microstructures organized in a hierarchical system. They also contain small additional fractions of
18 Pages(4500 words)Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Literature review on topic Declining Lease Lengths in Commercial Properties for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us