Introduction
For many small business owners, leasing space feels like the natural choice. It’s flexible, predictable, and less intimidating than buying commercial property. Much like a homebuyer, you evaluate and ask if that rent check you write every month could actually be building your wealth instead of someone else’s?
In Utah’s growing market — especially in areas like Salt Lake City, Draper, and South Jordan — owning your building can be one of the smartest moves you’ll ever make for your business. Let’s explore why more entrepreneurs are choosing ownership over leasing, and how it can accelerate your path to long-term growth.
1. Build Equity Instead of Paying Rent
When you lease, every payment strengthens your landlord’s portfolio — not yours. When you buy, those same monthly payments build equity in an appreciating asset.
Utah’s commercial real estate market has shown steady growth over the past decade, even during economic slowdowns. By owning your building, you’re not just running your business — you’re also investing in one of the strongest-performing asset classes in the region.
Example: A business owner in Cottonwood Heights who bought their office building five years ago may have already seen 20–30% appreciation, while their lease rate would’ve risen 10–15% over that same period.
2. Predictable Costs and Stability
Leasing often comes with annual rent increases, common area maintenance (CAM) fees, and other variable expenses that can strain cash flow. Owning your property creates predictable monthly costs — especially if you secure a fixed-rate commercial loan.
When you own, you control your future. You won’t face rent hikes, unexpected relocations, or lease terminations that disrupt operations.
Bonus: Once your loan is paid off, your business can operate rent-free — a huge competitive advantage.
3. Tax Benefits That Boost Your Bottom Line
Ownership comes with multiple tax advantages that leasing can’t match:
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Depreciation deductions reduce taxable income.
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Interest expenses on your loan are typically deductible.
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Capital gains on appreciation can be deferred through a 1031 exchange if you decide to sell and reinvest later.
For small business owners focused on long-term financial planning, these benefits can significantly offset ownership costs.
4. Create an Asset That Works for You
When you own commercial property, you gain flexibility to shape it around your business model — not the other way around.
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Customize the space to fit your brand.
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Sublease unused portions for extra income.
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Build additional square footage or add complementary businesses.
Your property becomes part of your business strategy, not just an expense.
5. Long-Term Appreciation and Retirement Value
Owning commercial property isn’t just about today’s stability — it’s about tomorrow’s freedom.
When you retire or sell your business, your real estate often holds more value than the business itself. You can sell the building, lease it to another tenant, or hold it as a passive income source.
In a growing metro like Salt Lake City, where job growth and population expansion continue to drive demand for commercial space, long-term appreciation potential remains strong.
When Leasing Still Makes Sense
Leasing may still be the better choice if your business is:
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In its early growth phase and needs flexibility to expand or downsize.
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Unsure of long-term location stability.
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Lacking the capital for a down payment or reserves for maintenance.
That said, many business owners are surprised to find that SBA 504 and 7(a) loans can make ownership more affordable than they think — often with down payments as low as 10%.
The Bottom Line
Buying your own commercial property isn’t just a real estate decision — it’s a business growth strategy. It gives you control, stability, and the ability to build equity over time, all while protecting your company from rising rents and market volatility.
If you’re a small business owner ready to explore buying commercial property in Utah, now is a great time to start.
Ready to take the next step toward ownership?
Contact Dan Rip at www.danripcre.com to explore available properties and financing options tailored to small business owners across Salt Lake City and the surrounding areas.
