What’s better: owning or leasing? Portfolio strategy for government entities

1,380 views

Published on

To take a deeper dive into the benefits of a diversified portfolio for government agencies, download the full report: http://bit.ly/1g68POw

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.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,380
On SlideShare
0
From Embeds
0
Number of Embeds
226
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

What’s better: owning or leasing? Portfolio strategy for government entities

  1. 1. Owning versus Leasing Strategic portfolio strategy for government entities
  2. 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. 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. 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.
  5. 5. Owned/leased diversification benefits 1 Owned/leased diversification decreases vulnerability to shifts in market conditions and government mission/operations.
  6. 6. Owned/leased diversification benefits 2 Owned/leased diversification avoids incompatibility between some agencies and departments.
  7. 7. Owned/leased diversification benefits 3 Owned/leased diversification eliminates additional occupancy responsibilities that come with ownership.
  8. 8. Owned/leased diversification benefits Owned/leased diversification captures value by leveraging longer- term lease requirements.4
  9. 9. Owned/leased diversification benefits Owned/leased diversification broadens relocation strategy options and enables more flexible workplace solutions.5
  10. 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.
  11. 11. COPYRIGHT © JONES LANG LASALLE IP, INC. 2014 Thank you Engage a knowledgeable expert Chris Roth: Christopher.Roth@am.jll.com Want to learn more about strategic portfolio strategy for government entities? Click here to read our full paper

×