The article explores how taking on debt can affect investment decisions. Debt can make landowners hesitant to invest in development projects because it can decrease the value of their debt. This can lead to underinvestment, especially when debt levels are high. The study suggests that land-intensive real estate companies tend to have lower debt levels. The researchers found that debt value can increase with higher asset volatility or interest rates. To address this issue, renegotiation and strict contract terms are proposed to encourage efficient investment decisions when using debt financing.