Evaluating the Decision to Own Corporate Real Estate

Loading...
Thumbnail Image
Penn collection
Real Estate Papers
Degree type
Discipline
Subject
Real Estate
Funder
Grant number
License
Copyright date
Distributor
Related resources
Author
Linneman, Peter D.
Pfirsching, Frank
Contributor
Abstract

The traditional decision analysis currently used by most corporations to decide whether to own or lease their operating real estate is fundamentally flawed, resulting in much more corporate-owned commercial property than is economically justified. Most firms currently lease space if the present value of future rent is less than the present value of the cost of self-ownership, net of depreciation benefits and expected property appreciation. However, the correct model for the own-versus-lease decision must compare the present value of profits the corporation expects if they lease, with the present value of expected profits if they decide to own real estate.

Advisor
Date Range for Data Collection (Start Date)
Date Range for Data Collection (End Date)
Digital Object Identifier
Series name and number
Publication date
2008-01-01
Journal title
Wharton Real Estate Review
Volume number
Issue number
Publisher
Publisher DOI
Journal Issue
Comments
Recommended citation
Collection