Introduction
When you’re managing a growing business, every dollar matters. You walk into a space, stare at the lease terms, and wonder: Is this going to be “safe” in five years? Leasing feels easier—until rent jumps, triple nets bite you, and you realize you’re funding someone else’s asset.
Buying a small warehouse or flex unit flips that equation: your payments build your equity. Let’s break down what it really costs—and what those numbers mean for your business.
The Leasing Side: Hidden Costs You Might Overlook
| Cost | What It Feels Like | Financial Impact |
|---|---|---|
| Rent escalations | “That ‘cheap’ rent you locked in two years ago is now rising 6–8% annually.” | That difference accumulates. |
| NNN fees / CAM / taxes / utilities | You pay a share of everything: roof, landscaping, property taxes. | These often rise faster than base rent. |
| Build-out cost (you) | You install shelving, wiring, HVAC—but you don’t own it. | Value accrues to the landlord. |
| Lease risk at renewal | New landlord or changed terms could force you out or raise rates drastically. | Disruption, relocation, extra cost. |
The Ownership Side: What You Pay—and What You Control
Mortgage / financing payments (which are often lower per month than lease in rising rent markets).
Property insurance, taxes, HOA / association fees — these are more predictable than NNN since you control the budget.
Maintenance & repairs — manageable when you design the system properly and select quality finishes.
Vacancy risk (if you lease out part of unit) — mitigated when your own business occupies the space.
Sample 5-Year Cost Scenario (Hypothetical)
Suppose you lease 1,500 sq ft vs buy a 1,500 sq ft flex unit in Centennial.
Lease = $19-$24 per sq ft, rising 5% annually.
Ownership = mortgage + fees apportioned, with 3% annual property tax increases.
Over 5 years, your total lease cost can exceed the cost to own—especially when you factor in equity growth, tax deductions, and stable payments.
The ROI Tipping Point: When Ownership Beats Leasing
Here’s when you should seriously consider owning:
Your lease escalation exceeds 4–5% annually.
You plan to occupy the space for 5+ years.
You want control over your workspace, finishes, and business operations.
You see upside in future appreciation in Centennial / Denver south metro.
Final Thought
Leasing may feel safer at first, but in Colorado’s tightening small-bay/flex market, ownership provides security, control, and equity growth. It’s not just a real estate move—it’s a business decision.
Curious how the numbers work for your business? We’d love to run a custom lease-versus-own analysis for you and show how a flex space purchase might pay you back faster than you think. Contact us to get started.
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