Which is the smarter company?
Company A is highly successful, publicly traded technology company that wants to consolidate its divisions and build its own dedicated campuses. The estimated cost of construction and land exceed $600M. Company A can secure investment-grade credit at the best terms available.
Company B sells its corporate headquarters and moves to a more tax-favorable state, leasing 2 million square feet in a class An office complex for a term of 10 years, with a favorable option to renew for an additional 7 years. The process from sales of the building will be used to finance its expansion of an adjacent product line that will operation at a 7% higher margin than its based product line.
It all depends on dozens of variables: leased or owned, the decision timeframe, to have dedicated space or share space…and so on. The complexity will require seasoned retail real estate professionals to construct a plan to uncover and negotiate the best real estate strategy possible, while keeping FASB capitalization requirements front and center as a your retail real estate portfolio evolves.
Blitzn’s team of consultants can work with you to analyze your unique situation and build the right real estate portfolio to meet your needs.