Modern lease monetisations: How to capitalise on market arbitrages to significantly reduce occupancy costs

Bob Mohr, Rodrigo Godoi and Elizabeth Loving
Additional contact information
Bob Mohr: 14643 Dallas Parkway #1000, USA
Rodrigo Godoi: Managing Director, Mohr Capital, USA
Elizabeth Loving: Senior Advisor, Mohr Capital and Director, Mohr Partners, USA

Corporate Real Estate Journal, 2022, vol. 11, issue 4, 314-333

Abstract: This paper introduces the concept of lease monetisation and details this lucrative strategy, which allows occupiers to generate a significant cash incentive from restructuring their lease to reduce their occupancy costs even further, while securing long-term control of an asset without an ownership interest or investing their capital. This paper explains the lease monetisation process, including the way corporate occupiers can decrease occupancy costs through long-term leases by taking advantage of arbitrage opportunities in the capital markets, the types of properties suitable for lease monetisations and the importance of corporate credit.

Keywords: lease monetisation; mission-critical facilities; cap rates; investment partner; value arbitrage; profit participation; cash incentives; lease restructure; investment-grade credit (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:aza:crej00:y:2022:v:11:i:4:p:314-333

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