1 INSIGHT

For small industrial users, the decision to buy or lease isn’t just about monthly cost – it’s about long-term control, stability, and equity growth.

With limited small industrial property inventory (typically under 20,000 Square Feet) and rising lease rates in many markets, more owner-users are exploring industrial condos as a way to lock in occupancy costs and build asset value over time. However, ownership also brings capital commitments and responsibility for maintenance, taxes, and association fees.

The right choice depends on your growth plans, cash flow, and operational stability.

2 ACTION STEPS THAT SMALL BUSINESS OWNERS SHOULD CONSIDER BEFORE DECIDING TO BUY OR LEASE AN INDUSTRIAL PROPERTY

• Compare total long-term occupancy costs, not just monthly payments – Evaluate lease payments over 5–10 years versus mortgage, property taxes, insurance, HOA dues, and maintenance. Consider potential rent escalations versus fixed-rate loan stability.
• Assess your operational and financial flexibility – Buying makes sense if your business is stable and unlikely to outgrow the space quickly. Leasing may offer more flexibility if your company expects rapid expansion, uncertain growth, or changing space needs.

3 KEY TAKEAWAYS

Create wealth while operating your business – Purchasing converts what would be rent into an investment that can grow in value over time.

Ownership gives you full control over your layout – You can redesign, reconfigure, or upgrade the space to match your operational needs without waiting for landlord approval.

Leasing preserves capital – Instead of tying up cash in a down payment, tenants can invest more into equipment, hiring, or business growth.