A real options case study : The valuation of flexibility in the World Trade Center redevelopment
Name
609634889-MIT.pdf
Description
Full printable version
Size
12.28 MB
Format
Adobe PDF
Checksum (MD5)
1a048f7a162d99eec79dc2d50288fd65
Author(s)
Cailao, Alberto P
Advisor(s)
David Geltner.
Alternative Title
Valuation of flexibility in the World Trade Center redevelopment
Date Issued
2009
Publisher
Massachusetts Institute of Technology
Abstract
This thesis will apply the past research and methodologies of Real Options to Tower 2 and Tower 3 of the World Trade Center redevelopment project in New York, NY. The qualitative component of the thesis investigates the history behind the stalled development of Towers 2 and 3 and examines a potential contingency that could have mitigated the market risk. The quantitative component builds upon that story and creates a hypothetical Real Options case as a framework for applying and valuing building use flexibility in a large-scale, politically charged, real estate development project. Through this demonstration, it is observed that applying Real Options "in" the World Trade Center Towers 2 and 3 projects minimizes losses in weaker markets and maximizes gains in stronger markets.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2009.
This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections.
Cataloged from student submitted PDF version of thesis.
Includes bibliographical references (p. 53-54).
Subjects
Center for Real Estate. Program in Real Estate Development.
MIT Department
Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.
Massachusetts Institute of Technology. Center for Real Estate
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