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Lease vs. Buy Analysis

A simplified net cash flow comparison over a 10-year holding period for corporate occupiers deciding whether to sign a lease or purchase a facility.

Space Requirements

Lease Scenario

Buy Scenario

10-Year Summary

Cost to Lease (10 Yrs)

Rent + NNN

Net Cost to Buy (10 Yrs)

Down pmt + Debt Service + OpEx - (Future Sale Price - Loan Balance)

The Verdict

*Assumes 3% annual appreciation on the property, 6.5% interest rate on the loan, and ignores tax shields (depreciation/interest deduction) for simplicity.