Lease vs. Buy: How to Choose the Right Path for Your Animal Care Facility

When planning an animal care facility, one of the most common questions we hear at Design Learned, Inc. is: “Should we lease or buy the property?” It’s a critical decision that impacts your operations, finances, and long-term growth. Unfortunately, there’s no universal answer. The right choice depends on your business goals, budget, and facility requirements. 

Below are key considerations to make an informed decision.

Understanding Building Systems and Infrastructure

Most commercial buildings are not designed for the unique demands of animal care. Standard HVAC systems are often undersized, electrical capacity may not support specialized equipment, and sub-slab plumbing might be minimal or nonexistent. These deficiencies can affect animal health, safety, and comfort.

When leasing, you may face restrictions on improvements. Landlords often allow some upgrades, but major changes - such as installing advanced HVAC or plumbing systems - can be limited. Negotiating allowances can help, but flexibility is rarely absolute.

Buying, on the other hand, gives you full control. You can invest in infrastructure that supports your long-term operational needs without worrying about landlord approval. Owning a building allows you the freedom to select and use engineered systems that meet (or exceed) best practices for animal care.

Length of Stay and Return on Investment

How long you plan to occupy the facility is a major factor. Short-term leases can create challenges if significant upgrades are required. Many tenants spend heavily on improvements only to leave at the end of the lease, essentially gifting those upgrades to the landlord. To avoid this, negotiate the longest lease possible to maximize your return on investment.

Ownership provides stability. The improvement and investments remain your assets. Ultimately, you decide how long to occupy or repurpose the property. This control can be invaluable for animal care organizations that have long-term growth and expansion plans.

Cost Considerations: Upfront vs. Long-Term

Budget plays a central role in the lease-versus-buy decision. Leasing typically requires less upfront capital. You begin with rent payments and deposits. After those initial payments, typically animal care facilities allocate funds for permitted improvements. Renting can be appealing for businesses that need flexibility or have limited initial resources.

Buying requires a larger initial investment. In addition to purchasing the property, you’ll need financing for renovations and system upgrades. While upfront costs are higher, ownership allows animal care facilities to build equity over time. And, over time, this can provide long-term financial benefits.

Responsibility and Maintenance

Animal care facilities are complex - and ongoing maintenance is inevitable. Leasing often shifts major responsibilities, such as roof replacement or structural repairs, to the landlord. By not having to deal with the major responsibilities, animal care facilities see a reduction in the operational burden. However, the landlord’s solution may not align with your preferences or animal care standards.

Buying transfers full responsibility for maintenance and unexpected repairs to you. While this adds cost and complexity, it also gives you complete control over how issues are managed. Having the control ensures that repairs meet your operational and animal care standards.

Making the Right Choice

Both leasing and buying present opportunities and challenges. The best option often depends on your long-term vision, financial capacity, and the degree of control you need over facility infrastructure.

At Design Learned, our building engineers specialize in evaluating properties, identifying necessary upgrades, and designing engineered systems that support best practices in animal care. Whether you choose to lease or buy, our team of animal care experts can guide you from site evaluation through design and engineering to completed construction, ensuring your facility is safe, functional, and sustainable for years to come.

Ready to Start Your Property Search?

Contact Design Learned today to discuss your project and explore the best path for your animal care facility - all while leveraging the Design Learned advantage. Call the Design Learned team at 860-889-7078 or schedule a consultation online.