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| Rationales for Real Estate Leasing versus
Owning Author: John Benjamin, Chris de la Torre, and Jim Musumeci Start Page: 223 Abstract: In this article,
rationales for the widespread existence of commercial real estate leasing are examined.
Given the tendency of tenants to abuse property to their own advantage, there must be
powerful incentives on the other side to encourage landlords and property managers to
participate in the widespread practice of leasing. We suggest that common leasing
practices are the consequence of many rationales, including the ability of the landlord to
solve free-rider problems in maintaining property desirability and informational
asymmetries that exist between landlords and tenants. |
