Creation of a portfolio strategy for an organization begins with determination of what assets are strategic to the organization.  For instance, the research and development laboratories of a pharmaceutical firm may be considered strategic or the factories of a pulp and paper manufacturer.  On the other hand, the sales offices, warehouses and distribution centers are probably not strategic to these industry participants. For a firm whose business is logistics, then perhaps the warehouse is strategic. The concept is a firm most likely wants to control the strategic assets through fee ownership and lease the non-strategic assets. One can blur the lines a little by lengthening a lease term so that a leased asset has long term stability as if it were an owned asset.

-Ted Parcel

Ted Parcel is Executive Vice President of Corporate Services for NAI Global.