For many Arizona small business owners, 2025 feels like a turning point. Rents across the Phoenix metro continue climbing, vacancy rates are tightening in popular retail and service corridors, and landlords are increasingly pushing triple-net (NNN) lease structures that shift more cost and risk onto tenants.
So the question comes up more often than ever:
“Should I keep leasing, or is it finally time to buy a small commercial property for my business?”
If you’re an owner-operator in Gilbert, Chandler, Mesa, Tempe, or Queen Creek, this guide will give you clear, numbers-based direction — without the fluff.
Why More Arizona Business Owners Are Considering Ownership
Three major forces are pushing small business owners toward owning their space:
1. Rent Growth Outpacing Revenue Growth
Maricopa County retail rents have risen 20–35% since 2021, depending on the submarket. Renewals often jump another 8–12%.
That means your second-largest business expense (after payroll) can rise faster than your revenue — with zero equity to show for it.
2. The Stability Advantage
While a landlord can increase lease rates whenever your term resets, a fixed-rate commercial loan gives you predictable payments for decades.
For growing service businesses — gyms, salons, coffee shops, medical offices, pet services, auto shops — stability is strategic.
3. Owner-Occupied Loans Are Still the Cheapest Money in Commercial Real Estate
Even in a higher-rate environment, owner-occupied loan products offer:
- 10% down SBA 504
- 10% down SBA 7(a)
- Conventional 20–25% down
- Longer amortization periods (often 25 years)
- Financing for improvements and equipment
These programs effectively reduce cash-out-of-pocket and open the door to ownership sooner than many think.
Benefits of Owning Your Commercial Space
If your business is stable and profitable, ownership can provide three major advantages:
1. Build Equity on Money You’re Already Spending
If you’re paying $4,000/month in rent, that’s $48,000/year gone forever.
Owning converts that same payment into:
- Principal reduction
- Appreciation
- A real asset on your balance sheet
Over 10–15 years, that’s hundreds of thousands of dollars you keep instead of your landlord.
2. Control Your Buildout and Brand Experience
Leases restrict how you can modify your space.
Ownership allows you to:
- Add plumbing
- Expand your electrical load
- Install equipment
- Customize the customer experience
- Improve functionality
And when you sell the business? A fully improved, owned space can substantially increase enterprise value.
3. Future Rental Income
If you eventually outgrow the building, you can:
- Rent the property to another tenant
- Move your business into a second location
- Redevelop or expand
It becomes a long-term wealth engine instead of a long-term expense.
When Buying Doesn’t Make Sense
Not every business is ready for ownership. I tell clients honestly when leasing is still the better choice:
- Your business hasn’t been profitable for at least two years
- You may relocate or pivot within 36 months
- You need more space than your financials will support
- Your cash reserves are thin and would be strained by a down payment
- You only need the space seasonally or temporarily
If any of these apply, keep a lease. Ownership works best when your business is stable and predictable.
How Much Space Can a Small Business Owner Afford? (Quick Arizona Math)
A general rule of thumb:
For every $1,000 in monthly mortgage capacity, you can typically afford $150K–$185K in purchase price, depending on loan type and rate.
Example:
A business that can comfortably afford $4,000–$4,500/month can often buy in the $600K–$700K range.
Owner-operator real estate is more attainable than many assume.
Where to Find Good Small Commercial Properties in the East Valley
In 2025, the strongest areas for small-format owner-occupied commercial real estate include:
- Gilbert – retail/service corridors near Warner, Elliot, and Higley
- Chandler – Downtown, Price Corridor, McQueen Rd nodes
- Mesa – Dobson Ranch, Fiesta submarket, Eastmark-adjacent pockets
- Tempe – Apache, Broadway, and the 101/60 access zones
- Queen Creek – rapidly expanding service corridors on Ellsworth
These markets have strong consumer traffic, stable demographics, and good long-term demand.
How DTD Realty Helps Small Business Owners Buy Commercial Real Estate
Working with an owner-operator is different from working with an investor — and most agents don’t know the difference.
Here’s how I approach it:
✔ Financial analysis before we ever look at a property
✔ SBA-friendly property identification
✔ Lease vs. buy comparisons
✔ Buildout cost projections for service businesses
✔ Cash-flow forecasting based on your actual numbers
✔ Negotiation that protects your operating cash
Most small business owners can’t afford expensive mistakes. My job is to make the process clear and data-driven.
DTD Realty — Do The Deal.
Driven. Trusted. Dependable.
602.702.3601
https://www.dtdrealty.com
[email protected]
