Rental Expectations and the Term Structure of Lease Rates
- Topics:
- Strategic Leasing
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Overview: This paper analyzes the relationship between rental expectations and the term structure of lease rates. An important question is whether the term structure contains information regarding expectations of future rents. That is, can an expectations hypothesis similar to that of interest rates to hold be expected? In a rigorous form the expectations hypothesis states that forward rents are unbiased estimates of future spot rents. This paper examines the conditions under which this holds true and what factors that bias such a hypothesis.
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Format: PDF | Size: 357KB | Date: Oct 2003 | Pages: 28





