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The prevailing rationale is that owning is less expensive than leasing to meet the long-term space needs of the federal government. However, just as there is no “one size fits all” solution for corporate portfolios, government agencies must also find an optimal composition of leased and owned space that best supports their needs.
2. Avoiding “costly leases”
The prevailing rationale is that, with
the lowest available cost of capital
thanks to tax revenues and federal
bonds, owning is less expensive than
leasing to meet the long-term space
needs of the federal government.
3. More complex than just cost
Like most real estate decisions, own versus lease considerations
are more complex than they may seem.
The decision to lease or own goes beyond just cost—the flexibility
of leasing reduces financial risk—allowing agencies to quickly
respond to changing business demands, align to strategic short
term needs, and maintain focus on business strategies.
4. There is no one-size fits all
Government agencies must find an optimal composition
of leased and owned space that best supports their individual
needs.
10. Own or lease? Yes.
When it comes to owning or leasing,
it is important to consider asset-based
decisions that fit within your broader
portfolio strategy—not just an
individual asset.