- Historically, a higher proportion of manufacturing sites are owner-occupied than leased in comparison to other sectors, but the ‘buy versus lease’ equation is not always clear cut and should depend on the specific circumstances of each business and its operations.
- As we discussed, manufacturers when leasing have tended to rely on the advice of commercial real estate developers and investors and their agents when structuring leases, far more so than other sectors.
- Structuring leases in the right way can significantly reduce operating expenditure and/or raise capital for investment in plant and equipment. This can reduce payback periods for a capital project, while also providing the right balance of security of tenure and flexibility to enable future growth.
- A simple audit of a lease or no obligation consultancy will often reveal significant cost-saving or capital raising opportunities for a manufacturing business.
- Manufacturers currently accessing government grants to invest in new plant and equipment, or to create new jobs should be considering the right structure of their leasehold or freehold interests to support their objectives.
For further information or a no cost consultation you can contact
Dylan O’Donnell
dodonnell@lpc.com.au
+61 411 222 826 mobile
+61 2 9235 1300 main