Commercial Property Lease and Premium for Occupancy

This study uses a theoretical model to investigate the optimal level of facility investment and goodwill formation conducted by commercial tenants under uncertainty premium for occupancy recovery. Based on model, we analyze effects introducing series premium-related policies in recent years. Our analyses show that landlord’s obligation compensate damages recognized amendment <Commercial Building Lease Protection Act> increases probability recovering premium, thereby elevating tenants. The introduction ‘Premium Occupancy Credit Insurance’ also raises purchasing insurance. results demonstrate if an insurance provider is unable make distinction between demanders according failure recover sets single rate, with higher likelihood more than those lower probability.