When it comes to growing a business, few decisions carry as much weight as where you operate. Your space is more than just square footage. It influences your brand perception, your team’s experience, your financial health, and your long-term flexibility.
In this episode of Behind the Brand, Eric O’Brien of Commercial Realty Solutions breaks down one of the most common questions business owners face: Should I lease, buy, or move?
The answer is rarely simple, but understanding the strategy behind each option can help you make a more confident, informed decision.
Start With Your Business Plan, Not the Building
Before you even begin browsing listings or touring spaces, Eric emphasizes one critical step: revisit your business plan.
Too often, business owners make real estate decisions based on what feels right in the moment rather than what aligns with their long-term goals. But your space should support where your business is going, not just where it is today.
Ask yourself:
- What does growth look like over the next 5–10 years?
- Will you need more space, less space, or something different entirely?
- Does your location support your customer experience and brand?
Real estate is not a short-term decision. Whether you lease or buy, you are making a commitment that should reflect your future, not just your current needs.
Why Most Businesses Start With Leasing
For many businesses, leasing is the natural starting point. Early-stage companies often lack the predictable revenue or capital needed to purchase property, and leasing offers flexibility during periods of growth.
Eric explains that leasing allows businesses to:
- Test and refine their operations
- Adjust their footprint as they scale
- Preserve capital for hiring, marketing, and expansion
There is also a practical reality. A business that starts in a small or home-based setup may not be ready to jump from a few hundred dollars a month to several thousand in overhead. That transition takes planning and education.
Leasing is not a fallback option. It is a strategic choice that gives business owners room to grow without overextending themselves financially.
When It Might Be Time to Buy
At some point, many business owners begin to consider purchasing real estate. The appeal is clear. Ownership can create long-term equity, stability, and potential resale value.
But Eric cautions that buying is not always the right move.
Owning a building does not just mean owning space. It means taking on an entirely new responsibility. You are no longer just running your business. You are also managing a property, handling maintenance, and potentially acting as a landlord.
One of the most important questions to ask is:
Do you want to be in the real estate business as well?
If the answer is no, buying may not be the best fit.
There is also the financial side to consider. Purchasing property typically requires a significant down payment. That capital often comes directly from your business, which can limit your ability to invest in growth.
In many cases, Eric has seen businesses benefit more from keeping their capital focused on operations rather than tying it up in real estate.
The Hidden Middle Ground: Strategic Leasing
What many business owners overlook is that leasing can be just as strategic as buying.
Long-term leases can provide stability while still avoiding the responsibilities of ownership. Renewal options can protect your space as your business grows. And strong landlord relationships can create flexibility when your needs change.
There are even hybrid approaches. Some businesses partner with investors who purchase the building and lease it back to them. This allows the business owner to secure a long-term location without taking on the burden of ownership.
The key is understanding that leasing is not one-size-fits-all. With the right structure, it can be a powerful tool for growth.
How the Market Is Changing Business Decisions
The commercial real estate landscape has shifted significantly in recent years. The impact of remote work, rising construction costs, and higher interest rates has reshaped how businesses think about space.
Many companies have realized they no longer need the same footprint they once did. Others are reconfiguring their space to better support collaboration rather than just housing employees.
At the same time, limited new construction has created a tighter inventory of available properties. That means businesses need to plan further ahead and be more intentional with their decisions.
Eric notes that commercial real estate moves on a different timeline than residential. Businesses often plan relocations months or even years in advance, making proactive strategy even more important.
When Moving Makes More Sense Than Staying
Sometimes the right decision is not whether to lease or buy, but whether to move at all.
Businesses outgrow their space. They pivot their services. They shift their target audience. All of these changes can create a mismatch between your operations and your location.
Signs it may be time to move include:
- Your space no longer supports your workflow
- You are paying for unused square footage
- Your location no longer aligns with your customers
- Expansion opportunities are limited
Moving is not always about growth. In some cases, it is about right-sizing your business to improve efficiency and profitability.
Thinking Beyond Today: The Second-Generation Mindset
One of the most valuable insights Eric shares is the importance of thinking about “second-generation” use.
If you buy a building, what happens if your needs change? Can you lease part of it to another tenant? Can the space be repurposed easily?
Businesses evolve. Your real estate should be able to evolve with you.
Planning for flexibility on the front end can save you from costly limitations later.
Real Estate and Exit Strategy Go Hand in Hand
Real estate decisions do not just impact your current operations. They also play a major role in your eventual exit.
When it comes time to sell your business, owning property can either add value or create complications. Buyers may not have the capital to purchase both the business and the real estate, which can affect the structure of the deal.
In many cases, Eric helps business owners separate the two by selling the business first and leasing the property to the new owner. This approach can make the transition smoother while preserving the value of both assets.
Make the Decision That Supports Your Business, Not Your Ego
There is no universal “right” answer when it comes to leasing, buying, or moving. Each option has its place depending on your goals, resources, and stage of growth.
The most important thing is to approach the decision with clarity and intention.
- Leasing offers flexibility and preserves capital
- Buying creates long-term equity but adds responsibility
- Moving can unlock growth or improve efficiency
As Eric puts it, the goal is not just to secure a space. It is to make a decision that supports your business plan and positions you for what comes next.
