In recent years, real estate investment has witnessed an unprecedented internationalisation. However, national markets largely continue to be shaped by domestic law and local business practices. This book provides a comparison of the British and German property markets, which are Europe’s most important, and discusses key elements of the economics of leasing. Applying the theory of long-term contracts and the economic analysis of bankruptcy law to leases, it examines in detail the regulations pertaining to rent adjustment and tenant default, which can substantially impact investment performance. The prevailing rent adjustment mechanisms such as rent review and indexation are discussed. A comparison is made of the remedies available to landlords of defaulting tenants under both jurisdictions.
Frankfurt am Main, Berlin, Bern, Bruxelles, New York, Oxford, Wien, 2010. 231 pp., 20 fig., 11 tables
Contents: Business leases in Britain & Germany – Leases as long-term contracts – The economics of rent adjustment in business
leases – Fixed rents – Graduated rents – Rent review – Indexation – Percentage rents – Economic analysis of tenant default
– Forfeiture, debt enforcement and insolvency of business tenants.