Value of incorporating flexibility in lab buildings : a real options approach
Name
938682725-MIT.pdf
Description
Full printable version
Size
8.31 MB
Format
Adobe PDF
Checksum (MD5)
994359dc55055a44d5381353abf664c9
Author(s)
Shah, Kartik (Kartik L.)
Advisor(s)
David Geltner.
Date Issued
2015
Publisher
Massachusetts Institute of Technology
Abstract
This thesis investigates flexibilities in commercial lab buildings with the help of the real options theory. The qualitative component of the thesis explores the development of the lab building as a building typology and its relationship to economic value creation for developers. It also investigates various strategies employed by developers during the design and development of lab buildings to hedge against the downside risk. The quantitative component builds upon that hypothetical lab building development case and creates a Real Options case as a framework for applying and valuing flexibility in this complex building type. Through this demonstration, valuation of flexibility employed in the current practice is derived.
Description
Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2015.
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 52-53).
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
Terms of Use
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