{"id":885,"date":"2020-04-28T16:00:23","date_gmt":"2020-04-28T08:00:23","guid":{"rendered":"http:\/\/localhost:8888\/?p=885"},"modified":"2025-12-25T16:46:22","modified_gmt":"2025-12-25T08:46:22","slug":"tenant-management-and-lease-valuation-for-retail-properties-a-real-options-approach","status":"publish","type":"post","link":"https:\/\/www.gssinst.org\/irer\/2020\/04\/28\/tenant-management-and-lease-valuation-for-retail-properties-a-real-options-approach\/","title":{"rendered":"Tenant Management and Lease Valuation for Retail Properties: A Real Options Approach"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"885\" class=\"elementor elementor-885\" data-elementor-settings=\"[]\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9151ae2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9151ae2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-40d8b4a7\" data-id=\"40d8b4a7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4cd00fa2 elementor-widget elementor-widget-text-editor\" data-id=\"4cd00fa2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\"><div class=\"article_label\">Article<\/div><p class=\"article_title\">Tenant Management and Lease Valuation for Retail Properties: A Real Options Approach<\/p><div><p class=\"title_label_large\">Author<\/p><p class=\"title_label_large\">Start Page \/ End Page<\/p><p class=\"title_label\">Volume<\/p><p class=\"title_label\">Issue Number<\/p><p class=\"title_label\">Year<\/p><p class=\"title_label_large\">Publication<\/p><\/div><div><p><!-- Author \/ StartEndPage \/ Volume \/ IssueNumber \/ Year \/ Publication --><\/p><p class=\"title_text_large\">Takeaki Kariya, Yasuyuki Kato, Tomonori Uchiyama and Takashi Suwabe<\/p><p class=\"title_text_large\">44 \/ 82<\/p><p class=\"title_text\">8<\/p><p class=\"title_text\">1<\/p><p class=\"title_text\">2005<\/p><p class=\"title_text_large\">International Real Estate Review<\/p><\/div><div class=\"empty\">\u00a0<\/div><p class=\"abstract_label\">Abstract<\/p><p><!-- Abstract Content --><br \/>In this paper, we formulate a tenant management problem for retail properties, such as shopping centers, provide an analytical framework for deriving the probability distribution of the sum of discounted future cash flows stochastically generated through tenant management, and find an optimal lease agreement structure and strategy for tenant-replacement management. More specifically, we formulate the problem of valuing the net present value of future net income from a retail property with tenant management and provide a valuation model for management decision making. The income fluctuates with market rent variations and management processes. In our framework, a property manager is required to choose an optimal mix of fixed rent and variable rent linked to tenant sales, and one of two tenant-replacement rules for return and risk enhancement. Finally, we provide an optimal strategy for this problem using Monte Carlo simulation, through which we value the real options of adopting an optimal strategy for percentage rent and tenant replacement made available by the New House Lease Law in Japan.<\/p><p>\u00a0<\/p><p><!-- PDF DownloadLink --><\/p><p class=\"download\"><a href=\"http:\/\/www.gssinst.org\/irer\/wp-content\/uploads\/2020\/10\/vol-8-tenant-management-and-lease-valuation.pdf\"><strong>View PDF -https:\/\/doi.org\/10.53383\/100060<\/strong><\/a><\/p><div class=\"empty\">\u00a0<\/div><p><a class=\"backpage\">Back to Previous Page<\/a><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<div>\n<p class=\"title_label_large\">Author<\/p>\n<p class=\"title_label_large\">Start Page \/ End Page<\/p>\n<p class=\"title_label\">Volume<\/p>\n<p class=\"title_label\">Issue Number<\/p>\n<p class=\"title_label\">Year<\/p>\n<p class=\"title_label_large\">Publication<\/p>\n<\/div>\n<div>\n<!-- Author \/ StartEndPage \/ Volume \/ IssueNumber \/ Year \/ Publication --><\/p>\n<p class=\"title_text_large\">Takeaki Kariya, Yasuyuki Kato, Tomonori Uchiyama and Takashi Suwabe<\/p>\n<p class=\"title_text_large\"> 44 \/ 82<\/p>\n<p class=\"title_text\">8<\/p>\n<p class=\"title_text\">1<\/p>\n<p class=\"title_text\">2005<\/p>\n<p class=\"title_text_large\">International Real Estate Review<\/p>\n<\/div>\n<p class=\"downloadLine\"><a href=\"https:\/\/www.um.edu.mo\/fba\/irer\/papers\/past\/vol8_pdf\/Kariya-Kato-Uchiyama-Suwabe(44-82).pdf\">Download Entire Article.<img src=\"https:\/\/i.ibb.co\/m8rCXNQ\/download-pdf-large.png\" alt=\"download-pdf-large\" border=\"0\"> <\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"article-template.php","format":"standard","meta":[],"categories":[147,146],"tags":[],"_links":{"self":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/885"}],"collection":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/comments?post=885"}],"version-history":[{"count":3,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/885\/revisions"}],"predecessor-version":[{"id":4848,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/885\/revisions\/4848"}],"wp:attachment":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/media?parent=885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/categories?post=885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/tags?post=885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}