Owning vs leasing of real properties in the Swedish public sector

Abstract

Purpose The purpose of this paper is to give an overview of a number of studies about owning vs leasing in the Swedish public sector and relate this to more general determinants of the choice between owning and leasing. Design/methodology/approach The empirical results presented are primarily based on a number of case studies. Findings The research shows that there have been a number of “rational” reasons for moving from owning to leasing: primarily better risk allocation and more efficient management of complex properties with both public and private tenants. In other cases, the excess supply of capital and the need to strengthen the balance sheet seems to have been more important. Research limitations/implications The result is based on a rather small number of case studies and this limits the possibility to generalise the results. Practical implications The results also indicate that moving from owning to leasing can reduce flexibility and that it is very important for careful analyses about the pros and cons in specific situations. Originality/value The paper offers insights into the choice between owning and leasing in the Swedish public sector.