The Hour Glass

[donmihaihai]

Principal doing well, dealership performing well or above expectations, landlord has little reason to replace tenant. Not the same when principal and/or dealership are not performing well. Apply to prime location.

For huge mart operating at outer region of a city that can pull in crowds, it makes sense to own instead of renting. I bet the rental before a mart and after a successful mart will be huge. For shopfront at the intersection of a prime location, it might not be so clear cut, but I think owning it is still a better option or make more sense strategy wise. Throwing away the textbook question of allocation of capital - rent vs own.