We have been approached by many clients who contemplate the
advantages of buying versus leasing space to serve as their
headquarters facility. More often than not, the underlying decision
is based on the numbers. In order to make a well informed business
decision, we recommend a comprehensive side-by-side comparison of
each option.
WHAT FACTORS TO CONSIDER
Some important factors to consider include interest rates,
flexibility to expand or downsize, building equity for future cash
reserves and control in operation and management.
Interest Rates
Current market rates are extremely favorable for organizations
seeking to purchase space that will serve as their headquarters
facility. For example, nonprofit organizations are able to obtain
interest rates in the 3% range which can be amortized over 25
years. These rates are typically locked in anywhere from 3 to 15
years. For-profit organizations typically obtain interest rates 1.5
to 2 percentage points higher than
