For example, electronic stores, such as Best Buy, can not easily forecast where technological evolution may drive their merchandise
mix over the term of a lease.
Buying has other accounting benefits as well: If a company puts a lease on its balance sheet, it depreciates the value
only over the term of the lease, but if the company owns a building, the depreciation can run the full length allowed for commercial buildings (currently 39 years).
whether the rental payments were calculated to amortize the purchase price of the property at an agreed annual rate of return over the term of the lease
Lease payments typically are fixed to provide for amortization of the purchase
price over the term of the lease plus a specified return rate on the buyer's investment.
A valuator will want to examine the accounts of the tenant (or tenants) to see how financially sound they are Think of a valuator as a nicer version of your bank manager - the latter only looks to see if you can repay him, but the valuator will check if the tenant can repay you and he does this through a knowledge of accounting and business acumen, how businesses produce income and how stable that income will be
over the term of the lease.