Most real estate decisions by corporations are, in reality, financial decisions. Once a corporation concludes it needs a particular piece of real estate in order to operate its business effectively, the real estate decision has been made. The next decision is strictly financial - how should the corporation pay for - or finance the cost of the property.

In approaching this financial decision, the corporation should consider four basic alternatives:

• Owning the property for all cash
• Owning the property but financing a substantial part of the cost through mortgage debt
• Leasing the property under a traditional real estate lease
• Leasing the property under a bond net lease