Remain a tenant or become an owner

With average asking office rents across the country up nearly 20% over the past five years, many occupiers are seeking alternatives to leasing space. One option to circumvent paying high rents is for a business to invest in its own building, which entails additional benefits of portfolio diversification and in some cases avoiding the need to recognize a lease obligation on its balance sheet as required under Financial Accounting Standards Board (FASB) regulations.

While the case can usually be made for small and large businesses alike to consider owning their commercial property, today’s economic climate makes the idea especially attractive. As a wealth creation strategy, it might be tough to beat for a long time.