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Lease vs Own Analysis

Competitive circumstances and economic conditions change. As a result, the relative benefits of leasing or owning real estate assets can change over time, as well.

Performing a regular lease versus own analysis is delicate but can be extremely beneficial. It should take into account a number of factors, including:

  • The corporate objectives and direction
  • The purpose and type of the real estate asset
  • Length of use of the asset, type of equipment and installations
  • The impact of the corporate presence in a geographical location
  • The created value of the asset
  • The cost and the availability of funding 

 Our team can work with you to:

  • Compare the impact of a capital versus an operating lease
  • Determine the cost of capital and yields under various lease/own scenarios
  • Assess the risks and the advantages of deploying cash for other uses
  • Evaluate the flexibility of lease/own obligations
  • Calculate the impact on cash flow
  • Examine the availability of financing
  • Define property management responsibilities
  • Determine impact on the balance sheet and income statement