I work with a sub-lessee of some space. Their agreement is up shortly and it looks like they will be staying put.
What makes this amusing in my mind is that the lessee and the sub-lessee have been in the same space for over ten years. The amount of money spent in those 10+ years for rent and Cam charges by the two entities has been over $2MM.
I advised my client that the money could be spent on ownership rather than rent. They opted for the rent option.
I really believe that the lessee and the sub-lessee should have looked a bit more aggressively into ownership. $2MM could buy a lot of building, especially for a 20 year period that could easily be $4MM in rent money.
I joke with my client because their annual portion of the rent would completely cover the expenses of the recent portion of the purchase of my office. But I did get a pretty great deal. But the bank would not let me beat them up for the 20% discount I wanted.
So they will continue to rent for the foreseeable future and I will slowing pay off the bank and have ownership of my space.
There are always different approaches to running a business.