Paper Title
COMPANY CHARACTERISTICS THAT INFLUENCE OWNERSHIP OF CORPORATE REAL ESTATE

Abstract
Based on major surveys of over 2000 private businesses conducted at the end of 2014 and Q1 of 2019, this paper presents evidence on the significance of various factors that determine the buy versus lease decision for corporate real estate. The financial implications of owning versus leasing of corporate real estate typically involve comparisons of cash flows and IRRs between buying and leasing scenarios, utilizing various assumptions such as residual value, interest rates and tax rates. Unlike most other types of tangible corporate assets, however, corporate real estate is functionally multi-faceted, and can involve many intangible considerations such as location, design, and branding. As such, the BVL decision for corporate real estate comprise factors that are specific to each situation and company, which go beyond IRR calculations. This paper provides empirical evidence on the significance of company factors that influence the BVL decision for corporate real estate. Keywords - Buy Vs Lease, Corporate Real Estate