December 18, 2025
Don't rent for another year. See the math on buying your own facility with only 10% down, fixing your costs for 25 years while building equity.
Should I buy or lease my business facility in 2026?
With SBA 504 interest rates stabilizing around 6.1% – 6.5% and industrial inventory finally available due to the recent construction wave, 2026 is the ideal year for business owners to purchase real estate.
The SBA 504 program allows you to buy with just 10% down, fixing your occupancy costs for 25 years while building tax-advantaged equity.
If you run a business in Riverside or San Bernardino County, you are likely paying between $1.10 and $1.50 per square foot in rent.
The Small Business Administration (SBA) designed the 504 program specifically to help business owners buy their own facilities. It is structured to keep cash in your business.
Let’s look at a real-world scenario for a 5,000 SF building in Perris, CA.
Purchase Price: $1,500,000 ($300 PSF)
| Feature | Leasing (Tenant) | Owning (SBA 504) |
|---|---|---|
| Upfront Cost | ~$40,000 (Deposit + 1st Mo) | $150,000 (10% Down) |
| Monthly Payment | $6,500 (Rent) | ~$9,800 (Mortgage) |
| Fixed Cost? | No (Increases Annually) | Yes (Fixed 25 Yrs) |
| Tax Benefits | Rent Deduction | Depreciation + Interest |
| Equity (10 Yrs) | $0 | ~$600,000+ |
The “Premium” Myth:
Yes, the mortgage payment is higher than rent today. But rent rises every year. In 5 years, market rent will likely catch up to your mortgage. In 10 years, your mortgage will look cheap compared to market rents of $9,000+.
To qualify for an SBA 504 loan in 2026, you generally need to:
💡 Pro Tip: Since you only need to occupy 51%, you can lease the remaining 49% to a tenant. Their rent checks can cover 30-40% of your mortgage!