Turnover-based Leases Difference & Interaction between Value & Worth (February 2022)

This report, the second of a two-part series examining the increased use of turnover-based leases in the market, considers the impact on worth that may result from a move to this type of lease. The study compared the worth of an asset (“Worth” being defined as a subjective assessment of attractiveness to an investor, based on a number of criteria) leased on fixed rents versus that leased on a turnover basis. The impact of fixed versus turnover rents on the volatility of cash flows was also investigated.

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