The numbers don’t lie — owning your commercial space is often cheaper than renting

Most people assume leasing is the easier, more affordable option when it comes to commercial space. But when you run the numbers, ownership doesn’t just hold up — it actually comes out ahead.

At Personal Warehouse, we’ve seen this play out time and time again. Owners save money, build equity, and gain long-term financial security, while renters keep paying more year after year with little (or nothing) to show for it.

But don’t just take my word for it… Here are the actual numbers that how how owning is the better financial choice.

Monthly Costs: Ownership Wins

One of our most common Personal Warehouse units is a 1,000 sq. ft. warehouse with a 300 sq. ft. mezzanine, fully built-out with a restroom, HVAC, sealed concrete floor and high-end finishes (for clarity, that’s 1,300 sq. ft. of total industrial flex space).

• Purchase price: In an average market, you can snag one of these for around $380,000
• Down payment (20%): $76,000 (most banks require 20% down on a commercial loan)
• Loan terms: 25 years at ~7.5% interest (this varies, obviously, but it’s a good comparison number)
• Monthly mortgage payment: ~$2,250

As you can imagine, I own a number of Personal Warehouse units that I lease out to business tenants across our projects. To lease that exact same space, I typically charge around $25/sq. ft. That means for the same unit, you’d be paying $2,600–$2,700 per month in rent.

That’s an extra $4,000 a year just to rent instead of own. And that gap only gets wider over time.

The Hidden Cost of Rent Increases

Most commercial leases include a 3–5% annual increase. That means every year, you’re paying more — while your landlord / owners keep paying the same fixed mortgage.

Let’s look at how this plays out over three years:

• Year 1 lease cost: $2,600/month → $31,200 total
• Year 2 (5% increase): $2,730/month → $32,760 total
• Year 3 (another 5%): $2,866/month → $34,392 total

After three years, you’ve paid $98,352 in rent — with nothing to show for it.

Meanwhile, if you own, your mortgage stays the same. Across that same three year period, you would have paid $81,000 in mortgage payments… a savings of ~$17,350.

And on top of that, you’re actually building equity.

Ownership Builds Wealth Over Time

One of the biggest advantages of owning a Personal Warehouse unit? Appreciation.

Historically, our units appreciate at about 6% per year (now, that’s neither every market nor every year… but in most markets, most of the time, that’s what we see across across projects).

That means:

• Year 1: $380,000 → $402,800
• Year 2: $402,800 → $427,000
• Year 3: $427,000 → $452,000

In just three years, your property could gain $72,000 in value.

Compare that to leasing, where after three years, you’ve spent nearly $100K on rent and have zero equity to show for it.

Leasing vs. Owning: The Three-Year Comparison

Beyond the Numbers: More Benefits of Ownership

The financial advantage of owning goes beyond just monthly payments. Ownership gives you:

Predictability – No sudden rent hikes, no unexpected lease terminations. You’re in control.
Customization – Upgrade your space, install new equipment, or modify it however you want — no landlord approvals needed.
Business Growth – Your warehouse isn’t just a space — it’s a financial asset that can help you secure loans, expand, or sell your business for more down the line.
Potential Rental Income – Many of our owners start by purchasing one unit, then buy additional spaces to lease out — turning their warehouse holdings into an investment property.

The Bottom Line

If you plan to stay in your space for more than a couple of years, ownership is almost always the smarter financial move. You save money, build equity, and gain long-term stability — all while usually paying less than you would to rent.

At Personal Warehouse, we make ownership easy. If you’re ready to run the numbers and see how it could work for you, let’s talk.