Buy vs. Lease in 2025: Why More Businesses Are Investing in Their Own Space

Buy vs. Lease in 2025: Why More Businesses Are Investing in Their Own Space

At Johnston Pacific Commercial Real Estate, we’ve been watching a powerful shift taking place in the South Orange County market: more and more local businesses are choosing to purchase their own buildings instead of leasing. From San Clemente to Laguna Hills, companies are rethinking their long-term real estate strategy, and for many, ownership is proving to be the smarter move.

If you’re a business owner currently leasing space, 2025 could be the year to explore ownership. Here’s why our clients are making the switch:

1. Equity Over Expense

Every month you lease space is a month spent building someone else’s wealth. Ownership turns those same payments into equity that builds your future. Several Johnston Pacific clients who purchased in the last 24 months have already seen significant appreciation, some with equity gains that outpace their original down payments.

2. Proven Financing Strategies That Work

SBA 504 and 7(a) loans, which offer low down payments, long-term fixed rates, and financing options that include buildout costs. Whether you’re a startup or a second-generation company, Johnston Pacific has relationships with lenders that understand how to structure deals for owner-users in South OC.

3. Tax Advantages That Pay Dividends

Ownership brings powerful tax benefits. Talk to your CPA to ensure you’re taking full advantage of mortgage interest deductions, property depreciation, and potential capital gains deferrals. In many cases, these benefits make ownership a better financial decision, even when monthly costs are similar to leasing.

4. Control Your Space. Control Your Future.

As commercial real estate advisors, we’ve seen too many businesses disrupted by unpredictable lease renewals or restrictions on how they can use their space. When you own your building, you gain total control over how you use and improve your property. Whether you need upgraded power, high ceilings, additional parking, or a customized office layout, you call the shots.

5. Scarcity = Stability

South Orange County is a land-constrained market with very limited industrial inventory under 20,000 SF. Ownership not only locks in your location, but it also gives you an asset in one of the most sought-after markets in the region. Buildings we sold just a few years ago are now commanding top dollar or producing strong lease income for their owners.

Real Results from Johnston Pacific Clients

In Q2 alone, Johnston Pacific represented several business owners who made the leap from leasing to owning and they’re already seeing the benefits. One client opened escrow on a freestanding warehouse in less than 10 days!

Is Now the Time for You to Buy?

Every business is different, and that’s why we take a consultative, no-pressure approach to evaluating whether buying makes sense. At Johnston Pacific, we’ve helped business owners in manufacturing, distribution, creative services, biotech, and more find the right properties, secure financing, and build equity through ownership.

Let’s talk about what’s possible.
Call Johnston Pacific at 949-366-2020 for a confidential consultation and let’s see if buying your next space could be your best business decision in 2025.