Renting vs Owning an Office Building

Hi Analyst: The answer is yes. We would suggest that if the building a particular business is operating is paid for that you only include the output or sales, employment, and labor income from the business in modeling its economic impact. The expenses incurred in buying the building have already been made and should not be included in your analysis. However, if the business is leasing the building it operates in, then in addition to the output or sales, employment, and labor income there would also be some impacts in the “Real Estate and Establishments” (sector 360) from commercial leasing. So you would include the cost of leasing the building in your analysis as well. Please let us know if we can provide further assistance.