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TENANT OCCUPANCY STRATEGY · CANADA

Lease the space.
Or own the asset.

Put both strategies on one monthly cash-flow horizon—without collapsing financing, operating costs and residual equity into a misleading monthly-payment comparison.

EDITABLE ILLUSTRATIVE STARTING POINT

Set one decision horizon.

Every starting value below is an editable scenario—not market data. The purchase is modelled as sold at the end of the lease term so the cost horizons align.

OPTION A · LEASE

Occupancy commitment

Contract rent, recoveries, incentives, tenant capital and end-of-term cost.

Advanced lease cash assumptions +
OPTION B · PURCHASE

Ownership scenario

Financing, operating costs, capital, appreciation and a hypothetical sale.

Advanced ownership assumptions +
MODELLED HORIZON READOUT

Cash required, cost and residual equity.

INITIAL CASH · LEASE$250,000Tenant capital + transaction cost + deposit
INITIAL CASH · BUY$1,105,000Down payment + closing + improvements
PV COST · LEASE$2,297,512Entered 8.00% discount rate
PV COST · BUY$2,358,137After hypothetical sale at horizon
NET SALE EQUITY$1,959,026Sale value less selling cost and mortgage
DURABLE COST CROSSOVERMonth 48Hypothetical monthly sale test
PRESENT-VALUE DIFFERENCE · PURCHASE MINUS LEASE+ $60,625
  • At the entered horizon, the purchase scenario has CAD 1,139,007.99 less modelled net cash cost after a hypothetical sale than the lease scenario.
  • On the entered discount-rate basis, the lease scenario has the lower modelled present-value cost.
  • This is a scenario comparison, not a recommendation. Control, flexibility, financing risk, residual-value risk, tax and operating needs remain separate decision dimensions.
YEAR-BY-YEAR HORIZON TEST

What if the property were sold at each checkpoint?

Purchase cost includes the initial cash and monthly ownership outflows, less hypothetical net sale proceeds. This does not assume the lease can be terminated at each checkpoint.

YEAR 1$416,738 BUY − LEASE
$202,000$618,738
Value $3,264,000Mortgage $2,351,885
YEAR 2$287,217 BUY − LEASE
$517,180$804,397
Value $3,329,280Mortgage $2,301,210
YEAR 3$148,114 BUY − LEASE
$841,815$989,929
Value $3,395,866Mortgage $2,247,840
YEAR 4-$909 BUY − LEASE
$1,176,190$1,175,280
Value $3,463,783Mortgage $2,191,631
YEAR 5-$160,204 BUY − LEASE
$1,520,596$1,360,392
Value $3,533,059Mortgage $2,132,433
YEAR 6-$330,133 BUY − LEASE
$1,875,333$1,545,200
Value $3,603,720Mortgage $2,070,086
YEAR 7-$511,077 BUY − LEASE
$2,240,713$1,729,637
Value $3,675,794Mortgage $2,004,423
YEAR 8-$703,428 BUY − LEASE
$2,617,055$1,913,627
Value $3,749,310Mortgage $1,935,267
YEAR 9-$907,597 BUY − LEASE
$3,004,686$2,097,090
Value $3,824,296Mortgage $1,862,433
YEAR 10-$1,139,008 BUY − LEASE
$3,418,947$2,279,939
Value $3,900,782Mortgage $1,785,725
MODEL BOUNDARY

No automatic “buy” or “lease” verdict.

The engine compares the assumptions entered. It excludes income tax, capital-cost allowance, financing renewal, GST/HST, property-sale tax and transaction-specific legal effects. Ownership control, flexibility, residual risk and operating fit require a separate decision framework and professional review.

NEED THE LEASE SIDE IN MORE DETAIL?

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Compare escalations, additional rent, incentives, tenant capital and negotiated counters before using the lease as the occupancy baseline.

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