Why do companies that own a building sell the building and lease a space in it? Ex: CBS with television city
In: 9
1. They don’t need the full building anymore.
2. Building ownership requires maintenance which is either inefficient to have on staff or which you outsource anyways.
3. owning the building most likely means you are depreciating that cost over 27 years the end of which you have an old building. Renting the space means you can deduct the rent in full as an expense and you can move easily when the space is no longer up to snuff.
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