租賃契約條件對商用不動產租金影響之研究The Effect of Contract Terms on the Rent Level of Commercial Properties
The rents of commercial properties are affected by various factors, including macro-economic, regional, individual and other factors such as termination options. The lease contracts of commercial properties in the public sector in Taiwan usually include the terms of termination option for the lessors. This study explores the terms used to terminate the contract for the lessors, which is considered to impose an operating risk on the tenants.
This study first employs a multiple regression model to examine the factors affecting the rent level. The results show that the rent is significantly affected by the termination terms for the lessors besides other individual, regional and macro-economic variables. We then apply the “Binomial Option Pricing Model” to simulate how the value of the lease contract is affected by the termination options. The results of this study indicate that contracts in the public sector should consider the issue of equity for lessors and lessees, and provide important implications for rent pricing when the termination option is included in the contract.
Key words: Commercial Real Estate, Rent, Contract Terms, Real Option, Binomial Option Pricing Model