Real Estate Webinar - Creating a transaction-based rent index
Join Dr Steven Devaney (Henley Business School) and Malcolm Frodsham (Real Estate Strategies) for this Webinar where they discuss their research and analysis. Registration is now closed, if you still wish to attend please contact the Alumni team.
Commercial real estate investors through their agents and asset managers are frequently involved in negotiating and re-negotiating rents – either where lease contracts end or where market-linked rent reviews exist within leases. We examine the outcomes that arise from different types of negotiation, comparing new lettings to lease renewals and rent reviews for a large sample of UK commercial real estate leases. We explore both the average outcome and range of outcomes, accounting for upward-only clauses in the rent review case. We compare outcomes in terms of headline and effective rents, where the latter adjust for the duration of any rent-free periods that were granted. Finally, we discuss using different types of lease event for constructing a transaction-based index of rental growth and compare some results to existing indexes that rely on market rental value estimates. In doing so, we contribute to a wider debate on the use of transaction-based measures to track price movements and total returns for commercial real estate assets.
Dr Steven Devaney - Henley Business School
Dr Steven Devaney is an Associate Professor in the Department of Real Estate and Planning, Henley Business School. His research focuses on commercial real estate appraisal, pricing and investment, including the use of indexes to monitor the commercial real estate market. In addition to academic research, he has engaged extensively in industry-funded research for bodies such as the Investment Property Forum, RICS Research Trust and the European Public Real Estate Association.
Malcolm Frodsham - Director, Real Estate Strategies
Malcolm has 20 years of experience in real estate data, modelling and risk management techniques. He founded Real Estate Strategies in 2013, an independent management owned business that provides high quality forecasts, research and strategic consulting on the European real estate market. Prior to Real Estate Strategies, Malcolm was Director of Research at IPD and prior to that Head of Research and Strategy at Legal & General Property.