This study aims to analyze the impact of the structural characteristics on the office building rental contract. It compares between over and under 10 deposit to rent ratios among the Seoul office samples. Prior literature finds that the landlord and ...
This study aims to analyze the impact of the structural characteristics on the office building rental contract. It compares between over and under 10 deposit to rent ratios among the Seoul office samples. Prior literature finds that the landlord and tenant in the negotiation process increase the level of deposits to hedge the adverse selection due to information asymmetry. However, more competitive landlords may prefer the tenants who have no risk of rent default. Not only regional characteristics physical characteristics, but also contract type and service characteristics show significant results appeared to affect deposit/rent contract structure.