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Risky Business 

Moving forward, investment risk does not center on how likely a tenant is to default within 12 to 18 months, which is the general timeframe of a corporate credit rating. The concern is how likely the lease contract is to perform over its entire life, which may be 10 years or longer. Most businesses that rely heavily on real estate in their day-to-day operations prefer leasing to ownership for managing their real estate locations. Among the many reasons for this preference are the cost of capital and corporate flexibility.

To Lease or not to Lease? 

A principal goal of corporate management is to make a business worth more than the cost of its underlying assets. To create such shareholder wealth, management has three levers at its disposal asset efficiency, operating efficiency, and capital efficiency. Asset