Posts tagged Lease
Buying is Overrated
Aug 27th
If you are an occupier of commercial real estate it is a great time to lease space. We’re still getting calls from occupiers that only want to buy and won’t consider leasing. If that’s you’re attitude, good luck. Getting all of the stars to align for that perfect building at $0.25 on the dollar, in the perfect location, size and meets your functional requirements is extremely tough to near impossible.
Advantages of Leasing: Availability of Cash; Location; and last but not least Focus. Leasing allows the user to concentrate on his primary business without the distraction of managing real estate.
Also, if you own your real estate and need an infusion of cash, consider a sale-leaseback [read more].
Lease versus Buy?
Aug 11th
In the Deal of the Week column in the July 21, 2010, Wall Street Journal., Maura Webber Sandovi discusses the impending purchase of an office building in Falls Church, VA by Northrop Grumman Corporation for its new headquarters relocating from southern California. The underlying message was that by purchasing the building rather than leasing, Northrop was motivated by coming changes in accounting rules which will require leases to be shown on balance sheets as liabilities instead of expenses. Businesses will look for shorter-term leases to protect their borrowing capacity which will in turn impact landlords’ ability to obtain financing.
