To take a deeper dive into the benefits of a diversified portfolio for government agencies, download the full report: http://bit.ly/1g68POw The prevailing rationale is that owning is less expensive than leasing to meet the long-term space needs of the federal government. However, just as there is no “one size fits all” solution for corporate portfolios, government agencies must also find an optimal composition of leased and owned space that best supports their needs.

1. Owning versus Leasing
Strategic portfolio strategy for government entities

2. Avoiding “costly leases”
The prevailing rationale is that, with
the lowest available cost of capital
thanks to tax revenues and federal
bonds, owning is less expensive than
leasing to meet the long-term space
needs of the federal government.

3. More complex than just cost
Like most real estate decisions, own versus lease considerations
are more complex than they may seem.
The decision to lease or own goes beyond just cost—the flexibility
of leasing reduces financial risk—allowing agencies to quickly
respond to changing business demands, align to strategic short
term needs, and maintain focus on business strategies.

4. There is no one-size fits all
Government agencies must find an optimal composition
of leased and owned space that best supports their individual
needs.

5. Owned/leased diversification benefits
1
Owned/leased diversification decreases
vulnerability to shifts in market conditions
and government mission/operations.

6. Owned/leased diversification benefits
2
Owned/leased diversification avoids
incompatibility between some agencies
and departments.

7. Owned/leased diversification benefits
3
Owned/leased diversification eliminates
additional occupancy responsibilities that
come with ownership.

8. Owned/leased diversification benefits
Owned/leased diversification
captures value by leveraging longer-
term lease requirements.4

9. Owned/leased diversification benefits
Owned/leased diversification broadens
relocation strategy options and enables
more flexible workplace solutions.5

10. Own or lease? Yes.
When it comes to owning or leasing,
it is important to consider asset-based
decisions that fit within your broader
portfolio strategy—not just an
individual asset.

11. COPYRIGHT © JONES LANG LASALLE IP, INC. 2014
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