Arbeitspapier
Tenant Riskiness, Contract Length, and the Term Structure of Commercial Leases
This paper explores the connection between tenant riskiness, commercial lease length and the term structure of lease contracts. Theory shows that the possibility of default on a long-term lease generates a risk/lease-length connection. The empirical work uses a large CompStak lease dataset combined with tenant characteristics (including risk) from Dun & Bradstreet. Regressions show that lease length is inversely related to the D&B risk measures, as predicted, and that risky tenants pay a higher rent premium for long-term contracts than low-risk tenants. The presence of such tenants thus raises the slope of the term structure of commercial rents.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 10189
- Classification
-
Wirtschaft
Real Estate Markets, Spatial Production Analysis, and Firm Location: General
Business Economics: General
- Subject
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lease length
tenant riskiness
rent term structure
- Event
-
Geistige Schöpfung
- (who)
-
Brueckner, Jan K.
Rosenthal, Stuart S.
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
-
2022
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Brueckner, Jan K.
- Rosenthal, Stuart S.
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2022
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