Office Space, A Company's Frontier: The Corporate Decision to Buy or Lease

Markus Steuer, director of real estate at Drechtal Pharmaceuticals, must decide where his firm should locate in the immediate future. Drechtal was currently leasing space in seven different buildings, yet the company anticipated a dramatic increase in headcount should its first oncology drug, Trianoline, be approved by Swissmedic. The potential increased demand for space initiated Steuer's investigation into whether it was optimal to continue to lease space or whether or not Drechtal should invest in its own corporate headquarters. With the current leases set to expire over the coming 24 months, it was an opportune time to consider the company's options.