Why More Business Owners Are Buying Their Building—and What You Should Know First
By Chris Rohrer, Broker & Pete Kostroski, Broker | Rokos Advisors
For years, leasing has been the default for many businesses. It’s flexible, fast, and avoids the upfront capital commitment that comes with ownership. But lately, more business owners are asking a new question:
Should we buy our building instead?
It’s not just about real estate—it’s about long-term control, financial strategy, and building equity in something beyond your core operations. In a market full of uncertainty, ownership offers stability that leasing often can’t.
Here’s why more business leaders are making the move—and what you should consider before doing the same.
Why Ownership Is Back on the Table
Control Over Your Space — and Your Future
Owning your building puts you in the driver’s seat. No more rent escalations, relocation threats, or landlord-imposed constraints. You have the freedom to make long-term decisions that align with your business model—whether that’s customizing the layout, expanding into adjacent space, or staying rooted in a key location for decades.
Build Equity, Not Just Expense
When you lease, every rent check funds someone else’s investment. When you own, you’re building equity and potentially benefiting from long-term appreciation. For business owners planning for retirement or succession, real estate can become a valuable asset on the balance sheet.
Tax Advantages and Depreciation
Ownership comes with meaningful tax benefits, including depreciation, interest deductions, and opportunities for cost segregation studies. These tools can improve cash flow and reduce taxable income—especially for closely held businesses and professional service firms.
Opportunity in Today’s Market
Higher interest rates have cooled some investor activity, which means less competition for quality owner-user properties. Sellers are more negotiable, and businesses that can secure financing are in a strong position to buy well-located buildings at favorable terms.
But Ownership Isn’t for Everyone
Capital Commitment
Buying typically requires 10-25% down, depending on the loan type. That’s capital you won’t be investing back into your business. If you’re in high-growth mode, tying up liquidity in a building might not align with your priorities.
Don’t have the required upfront capital? Rokos Advisors can help you find investors interested in partnering with you so that you can still capture many of the benefits of ownership without bearing the entire financial burden.
Operational Flexibility
Ownership limits flexibility. If your headcount, operations, or location strategy could shift significantly in the next few years, leasing might offer the agility you need.
Asset Management Responsibility
With ownership comes maintenance, compliance, and long-term planning. Some business owners don’t want to take on the risk—or the distraction—of property management.
A Smart Ownership Strategy: Separate the Real Estate from the Business
Many companies choose to own the building in a separate entity and lease it back to the operating company at a fair market rate. This approach creates multiple advantages:
Preserves operational flexibility while still benefiting from ownership.
Allows the real estate to remain a long-term hold asset even if the business is sold or exits the location.
Creates an additional income stream and wealth-building opportunity for ownership groups.
How to Know If Buying Is Right for You
If you’re considering buying a building, ask yourself:
Do we have a stable footprint that won’t change significantly in the next 7-10 years?
Would ownership strengthen our long-term financial position?
Are we prepared for the responsibilities of managing a property—or willing to hire that expertise?
Could this be part of a broader succession or exit strategy?
Bottom Line
Buying your building is a strategic decision—not just a real estate one. When done right, it can create lasting financial value, operational control, and long-term stability for your business.
At Rokos Advisors, we help business owners think beyond the lease and evaluate when, how, and where ownership makes sense. Whether you’re exploring your first purchase, structuring a fair-market lease within a new ownership entity, or deciding between renewing a lease and buying your next HQ, we bring clarity and strategy to the process.
Curious whether buying is the right move for your business? Schedule a consultation with Rokos Advisors today.
Rokos Advisors is an award-winning Minneapolis - St. Paul based commercial real estate/tenant representation firm specializing in helping businesses find the perfect office or industrial space for their company.