Leasing Strategy and Contract Design for Golden Real-Estates - A Case Study of Convenience Stores
|關鍵字:||地租;租約;租金定價;黃金店面;超商;解約;Real Estate Leasing;Leasing Contract;Convenience Stores;Contract Termination|
Convenience chain stores are a very successful industry in Taiwan. Our surveys indicate that convenience stores located in golden real-estates greatly outperforms typical stores in terms of revenues and profits. Therefore, how to keep a long-term leasing contract with real-estate owners of golden shops is very important to convenience chain stores. To achieve this aim, this research proposes a bonus-based leasing strategy and investigates how to identify the optimum alternative in implementing this strategy. The idea of bonus-based leasing decomposes the leasing payment into two parts. One part is a fixed amount, which is a determined by a percentage (0≤a≤1) of the market price. The other part is a variable amount, which is determined by a percentage (0≤b≤1) of the leasee’s revenue. Such a leasing strategy is intended to share the profit of leasee with the leaser in order to keep a long-term contract. This idea works well if the leasee’s revenue is good or better than expectation. However, while the leasee’s revenue is substantially lower than expectation, the leaser shall have an option to terminate the contract. That is, if the actual renting income is lower than a particular percentage (0≤γ≤1) of the expected renting income, the leaser could terminate the contract by paying a penalty fee (P). Therefore, a leasing alternative based on the bonus-based leasing strategy can be represented by a portfolio(a,b,γ,P). This research assumes that the lessers and the leasee are rational decision makers in an information symmetric scenario. We develop a mathematical model to compute the probability that a lesser accepts a leasing alternative(a,b,γ,P) and the leasee’s expected profit. Based on the model, we use a software tool Mathematica to search an optimum leasing alternative, which will appear to be optimum to both the leasee and the leasers. The proposed leasing strategy and optimized implementation model shall effectively help the convenience store chains become more competitive by keeping long-term leasing contract in golden shops.