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> A long term lease is beneficial for the renter in many circumstances. That really depends… Take a well know British retailer (was either Debenhams or House
by youngtaff 4y ago
> A long term lease is beneficial for the renter in many circumstances.
That really depends…
Take a well know British retailer (was either Debenhams or House of Fraser can't quite remember)
Until the 80/90s it owned most of it's stores but a PE company bought the retailer and split the property into a separate company which them leased the stores to the retailer on an ever increasing rent
The property company was then sold off for a good price as it had assets and a 'good' income stream
The retailer now unable to cope with the rent levels become unprofitable and eventually went bust
- seti0Cha 4y agoObviously it makes sense for some companies and not for others, and so you see some buying real estate and others leasing. The point isn't that no company should ever own property, it's that it makes sense for many to rent.