One difficulty assessment officials face when valuing complex properties is disentangling the income streams associated with tangible and intangible property. From an income capitalization perspective, the disentanglement begins with estimating rents at the asset level. For example, airlines commonly use operating leases to acquire aircraft, yet little empirical research has been conducted on lease rate models because rental market transactions are typically hidden and opaque. Although the aircraft-leasing market is organized around private transactions and confidential contracts, a growing number of lessors publish their financial data for investors. These characteristics make commercial aircraft leasing an excellent industry through which to study asset level rents and test a leasing model.
Valuation of leased property; Airlines - United States
Sampson, S. (2022). Operating leases: Estimating commercial aircraft rents. Journal of Property Tax Assessment & Administration, 19(1). Retrieved from https://researchexchange.iaao.org/jptaa/vol19/iss1/1