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