... – The authors use a Monte Carlo simulation framework to simulate a real estate asset’s cash flows in which lease structures (rent, indexation pattern, overall lease duration and break options) are explicitly taken into account. The authors assume that a tenant exercises his/her option to break a lease...

... of the specific lease structure of the portfolio in commercial real estate. The model estimates both the risk included in the cash flows generated by the assets of the portfolio, and the risk to their prices. To describe more precisely these risks we consider five main sources of risks: 1...