Rebuilding with Confidence: Key Tips for Managing Disaster Reconstruction

Owning or leasing commercial real estate isn’t just about monthly payments—it’s a strategic decision that impacts flexibility, risk, tax strategy and long-term value. At The Barton Group, we help owners evaluate both paths with clarity so they choose what truly aligns with their goals.

1. Ownership: What You Gain and What You Commit To

When you purchase property, you build equity. You control future use, redesign, and exit strategy. But ownership also means responsibility for maintenance, property taxes, and market fluctuations. If business needs change quickly, you may be locked in.

2. Leasing: Flexibility with Trade-Offs

Leasing offers less upfront cost and greater flexibility—ideal if your needs may shift or you prefer operational expenditure over capital investment. But you give up control over the asset, you’re subject to lease terms, and you don’t build equity.

3. Key Decision Factors for Owners

• Budget & cash flow: Does buying tie up capital you could invest elsewhere?
• Term horizon: If you plan to stay 10-20 years, purchase may make sense; if 3-5 years, leasing often wins.
• Growth and change: Are your space needs stable, or will you expand/shrink?
• Tax & accounting: Owning offers depreciation, potential sale gains; leasing shifts expense off-balance-sheet.
• Market risk: When you own, market downturns affect you; leasing shifts some risk to the landlord.

4. Hybrid Strategies to Consider

Sometimes a hybrid approach works: starting with a lease and converting to purchase, or structuring a lease-with-option-to-buy. Consult your advisor on terms that allow flexibility while protecting upside.

5. Why Owner’s Representation Matters

As your owner’s rep, The Barton Group asks the questions most decision-makers don’t:

• What happens to your project if you outgrow the space in 5 years?
• What’s exit value if you buy today?
• Can the lease give you first right of refusal if the landlord decides to sell?

Whether you lease or purchase, making deliberate and informed choices puts you in control. Let us help you evaluate your strategy and align real estate decisions with your bigger organizational goals.