Core Facilities & the ROI of Equipment Leasing

Core facilities play a huge role in today’s research—but often operate with limited resources.
They’re expected to provide high-performance equipment for a diverse group of users, from startups to academic labs, while managing tight budgets, aging instruments, and unpredictable demand.

Traditionally, buying equipment outright has been the go-to strategy. But that approach comes with hidden costs—upfront capital, long approval cycles, and long-term maintenance burdens.

More facilities are now exploring leasing as an alternative. While not always the right fit, it can offer greater flexibility, faster access to new technology, and underappreciated ROI when viewed through an operational lens.

In this article, we’ll break down how equipment leasing can support smarter decision-making, improve financial performance, and better align with the evolving role of core labs.

Rethinking ROI in Core Facilities

For core facilities, return on investment (ROI) isn’t just about numbers on a balance sheet—it’s about scientific access, service quality, and uptime. Yet when evaluating new equipment purchases, many facilities default to a narrow definition of ROI: purchase cost versus projected usage.

That’s understandable. Core labs need to justify major expenditures, recover costs from users, and support a range of initiatives with finite resources. But in practice, this traditional approach often overlooks key factors that influence long-term value:

• The cost of downtime due to aging or unreliable equipment
• Delays in onboarding new technology that researchers or grant recipients need now
• Revenue lost when projects are turned away due to capacity limitations
• Obsolescence risk, especially with fast-evolving platforms in genomics, imaging, or analytical chemistry

This is where leasing begins to shift the equation. Instead of viewing equipment solely as a capital investment, leasing allows core facilities to treat instruments as strategic infrastructure—flexible, refreshable, and aligned with actual demand.

When framed this way, ROI becomes more than a cost-recovery formula. It becomes a tool for optimizing the entire lifecycle of service delivery—improving access, reducing disruptions, and supporting institutional research goals more effectively.

The Real Cost of Buying: What Gets Overlooked

Purchasing equipment outright might seem like the most straightforward approach—but the sticker price rarely tells the whole story. For core facilities, the true cost of ownership includes a long list of hidden and often underestimated expenses.

Upfront expenditures and liquidity

Large capital purchases tie up funds that could be used elsewhere—whether for staffing, facility upgrades, or supporting new research initiatives. Even when internal funding is available, it often comes with long approval cycles and strict allocation limits that delay procurement and reduce flexibility.

Depreciation and obsolescence

Once purchased, equipment immediately begins to lose value. Depreciation affects your balance sheet, and more importantly, your facility’s ability to remain competitive. In fast-moving fields, a system that was top-of-the-line five years ago may no longer meet end-user expectations—especially when competing with newer technologies in private or outsourced labs.

Maintenance, downtime, and warranties

Older equipment tends to break down more often, and warranty coverage can lapse before you’re ready to replace it. That leads to more downtime, more unplanned expenditures, and a higher risk of service disruptions that affect research timelines. For facilities that rely on cost recovery from user fees, even short periods of downtime can significantly impact revenue.

Lifecycle costs that aren’t budgeted upfront

Beyond the purchase price, there are often installation fees, software licensing costs, training needs, and ongoing service contracts to consider. These costs may not show up in the initial proposal—but they impact the total cost of ownership and long-term budgeting.

For facility managers focused on cash flow, forecasting, and cost control, these overlooked factors can make buying less attractive than it first appears. That’s where leasing can provide an alternate path—reducing upfront costs while improving operational predictability.

How Leasing Unlocks Short- & Long-Term Gains

For core facilities looking to balance operational needs with financial constraints, leasing offers more than just a workaround—it introduces new ways to manage resources more strategically.

• Reduce upfront costs without sacrificing capability: Leasing eliminates the need for large capital outlays, allowing facilities to acquire high-value equipment through predictable monthly payments. This can free up internal funds for other priorities—like staffing, renovations, or additional service offerings—while still expanding technical capabilities.
• Improve cash flow and budgeting accuracy: Instead of navigating irregular, lump-sum expenditures, lease payments are structured and scheduled. That makes it easier to build consistent cost recovery models, align pricing with user demand, and forecast budget needs over time. For many core facilities, this cash flow stability supports more reliable planning and reporting.
• Maintain access to new equipment over time: Leasing also simplifies the upgrade path. Rather than stretching the use of a system beyond its effective lifespan, facilities can trade in or transition to new equipment as research needs evolve. This reduces exposure to obsolescence, supports faster onboarding of new technologies, and helps facilities stay aligned with competitive benchmarks.
• Share risk with your lessor: Leasing agreements often include built-in warranties, maintenance coverage, and service contracts that reduce the burden on in-house teams. In some cases, leasing companies may also offer flexibility around contract terms or upgrade options—particularly for facilities with evolving scopes or multi-phase equipment plans.

The result? A more agile, responsive approach to lab infrastructure—without the delays, sunk costs, or unpredictability that can accompany traditional purchasing.

The Upside: Flexibility, Forecasting, & Future-Proofing

For many core facilities, the biggest return on leasing isn’t financial—it’s operational. When research timelines shift and service demand fluctuates, having the flexibility to adapt without overcommitting is a serious advantage.

• Adapt to changing initiatives and demand: Leasing gives facilities room to experiment. If a new research area gains traction—say, spatial omics or cell therapy analytics—you can bring in the equipment to support it without needing long-term capital approval. If demand slows, you're not locked into outdated or underused systems. That agility is increasingly important as core labs serve diverse end-users with unpredictable needs.
• Simplify decision-making under uncertainty: Facility directors are often asked to make equipment decisions before demand is fully validated. Leasing allows you to test a new platform or support a new initiative without betting your entire equipment budget. It also helps facilities navigate institutional politics—moving faster when approvals for large capital expenditures would otherwise stall momentum.
• Reduce risk of obsolescence: With technology cycles accelerating, the lifespan of scientific instrumentation is getting shorter. Leasing can help you avoid getting stuck with equipment that no longer meets user needs—or worse, becomes a liability due to maintenance issues, unsupported software, or outdated performance specs.
• Strengthen your ability to forecast: Because lease payments are structured and predictable, they support cleaner financial statements and clearer multi-year planning. You can forecast equipment-related expenses in real time, align service pricing with cost recovery goals, and report more effectively to university finance teams, grant funders, or external partners.

Simply put? Leasing transforms equipment from a one-time purchase into a tool for real-time operational alignment—something every core facility is being asked to do more of.

Lease vs. Own: ROI Comparison

Deciding whether to lease or buy often comes down to perceived cost. But in practice, the real return on investment for core facilities includes far more than just price tags. It includes performance, uptime, administrative burden, and the opportunity cost of delays.

Here’s how leasing compares to buying when you factor in broader ROI metrics:

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The main takeaway here is that, while purchasing equipment may look more cost-effective on paper, leasing can deliver a higher real-world return—especially when uptime, user satisfaction, and long-term adaptability are factored in.

Choosing the Right Partner for Leasing

Not all leasing providers are created equal. For core facilities, choosing the right leasing company or finance partner can make the difference between a smooth, flexible arrangement and a contract that becomes a headache over time.

Here are a few key factors to consider when evaluating leasing options:

Look for providers experienced in scientific equipment

Leasing firms that specialize in lab instrumentation understand the unique requirements of core facilities. They’re more likely to offer appropriate lease terms, support installation and validation needs, and structure agreements that fit your research lifecycle.

Evaluate the lease agreement carefully

Make sure you understand:

• What’s included in the monthly payments (e.g., maintenance, calibration, software updates)
• Whether there are options to extend, upgrade, or buy out the lease
• How the contract handles end-of-term decisions, like returns or renewals
• Any provisions for early termination or changing scopes

Transparent terms and flexibility matter, especially when you’re managing evolving service lines or multi-user needs.

Compare financing solutions, not just rates

Interest rate matters—but so do structure and service. Some leasing companies offer deferred payments for grants, structured schedules to match internal cash flow, or bundled warranties that reduce disruptions and operating expenses.

Ask whether the provider has worked with other research institutions, small businesses, or startups. If they’ve handled leasing for your peer facilities, they’ll likely be familiar with the pace, complexity, and compliance environment you’re navigating.

Consider long-term partnerships

The best leasing arrangements are built on trust. If your facility plans to grow or rotate equipment over time, consider providers who can help you forecast future needs, build upgrade paths, and offer real-time support when issues arise. Your leasing partner should act like an operational extension of your team—not just a lender.

Final Thoughts: Optimize ROI with Leasing

Leasing isn’t a one-size-fits-all solution—but for many core facilities, it offers a practical, flexible way to align capital decisions with operational goals. In a landscape where demand shifts quickly, technologies evolve fast, and budgets are under pressure, leasing helps facilities stay responsive without compromising on quality or service.

It’s not just about lowering upfront costs—though that’s a major advantage. It’s about reducing downtime, avoiding overinvestment in systems that may not age well, and giving your team the tools they need to support a growing and increasingly diverse research community.

Done right, leasing can help you:

• Improve cash flow and long-term planning
• Keep pace with latest technology without overextending
• Minimize disruptions tied to maintenance and equipment failure
• Make more informed decisions about when and how to upgrade
• Strengthen your facility’s alignment with institutional business goals and cost-recovery models

As core facilities take on a more strategic role in supporting startups, small businesses, and large-scale research initiatives, the ability to stay agile matters more than ever. Leasing is one way to build that agility into your infrastructure—and unlock ROI that goes beyond what’s captured in a purchase order.

Exploring new equipment for your core facility? Excedr helps institutions access cutting-edge instruments through flexible leasing—without large upfront expenditures.

Whether you're upgrading, expanding services, or reducing downtime, leasing can help you stay ahead while optimizing cost recovery. Get in touch with the team today to learn more.