Real options in real estate development

Journal of Property Investment & Finance

Volumn 19, Issue 1, 2001, Pages 73-78

  Lucius, Dominik I ^a  

^a EBS BUSINESS SCHOOL   (Germany)

Author keywords

Pricing; Real estate; Real options; Theory

Indexed keywords

EID: 84986139340     PISSN: 1463578X     EISSN: None     Source Type: Journal    
DOI: 10.1108/14635780110365370     Document Type: Review

References (13)

1. Buetow, G.W. Jr and Albert, J.D. (1998), “The pricing of embedded options real estate lease contracts”, Journal of Real Estate Research, Vol. 15 No. 3, pp. 253-65.
2. Capozza, D.R. and Li, Y. (1994), “The intensity and timing of investment: the case of land”, The American Economic Review, Vol. 84 No. 4, pp. 889-904.
3. Capozza, D.R. and Sick, G.A. (1991), “Valuing long-term leases: the option to redevelop”, Journal of Real Estate Finance and Economics, Vol. 4 No. 2, pp. 209-23.
4. Childs, P.D., Riddiough, T.J. and Triantis, A.J. (1996), “Mixed uses and the redevelopment option”, Real Estate Economics, Vol. 24, pp. 317-39.
5. Diederichs, C.J. (1996), “Grundlagen der projektentwicklung”, in Schulte, K.W. (Ed.), Handbuch Immobilien-Projektentwicklung, p. 29.
6. Guntermann, K.L. (1994), “The valuation of undeveloped land: a reconciliation of methods, Journal of Real Estate Research, Vol. 9 No. 2, pp. 169-74.
7. Kunter, G.W. and Seifert, J.A. (1989), “The valuation of mortgage loan commitments using option pricing estimates”, Journal of Real Estate Research, Vol. 4 No. 2, pp. 13-20.
8. Titman, S. (1985), “Urban land prices under uncertainty”, The American Economic Review, Vol.75 No. 3, pp. 505-14. After Titman, Capooza und Helsley (1990), Williams (1991), and Quigg (1993) did research on this option.
9. Trigeorgis, L. (1996), “Real options: managerial flexibility and strategy”, Resource Allocation, Vol. 7, p. 3.
10. Williams, J.T. (1991), “Real estate development as an option”, Journal of Real Estate Finance and Economics, Vol. 4, pp. 191-208.
11. Williams, J.T. (1997), “Redevelopment of real assets”, Real Estate Economics, Vol. 25 No. 3, pp.387-407.
12. Capozza, D.R. and Helsley, R.W. (1990), “The stochastic city”, Journal of Urban Economics, Vol.28, pp. 187-203.
13. Quigg, L. (1993), “Empirical testing of rea option-pricing models”, Journal of Finance, Vol. 18 No.2, pp. 621-40.