Is this a true statement? if so why?

Let's look at another industry. The retail store used to buy land and build the stores as they expanded in the old days. The change in real estate prices made the ownership unattractive because a profitable retail business may experience losses because of real estate ownership. These days, most retailers build the stores and sell them to a real estate company with an agreement to lease back the property. This strategy reduces the risk of real estate ownership and gives you tax benefits because lease payments are tax-deductible. Yes, rent is tax-deductible. If the company owns the property, the depreciation of the property is also tax-deductible.