Why Most Lease vs Buy Analyses Are Wrong
The typical lease vs buy spreadsheet stops at "monthly rent vs monthly mortgage." That comparison is meaningless. The real economics are: total cash out the door over the hold period, minus equity buildup (principal paydown), minus property appreciation, vs total lease payments with escalators.
The SBA 504 Effect
For owner-occupied businesses, SBA 504 financing dramatically tilts the math toward buying. 10% down, 25-year fixed-rate amortization on the CDC piece, blended rates competitive with conventional CRE — all on a building the business already needs. The opportunity cost of capital is much lower than market suggests.
When Leasing Still Wins
- Business is growing 25%+ per year and will outgrow the space within 5 years
- Capital is needed elsewhere with higher ROI than the property's NOI yield
- Location is critical but the right property is not for sale
- Owner is approaching exit and adding real estate to the personal balance sheet is undesirable
The Florida Tax Wrinkle
Florida has no state income tax — which makes mortgage interest and depreciation deductions purely federal. Pair this calculator with the Cost Segregation Calculator to model the after-tax buy case properly.
Rate & Lending DisclosureInterest rates, loan terms, leverage levels, and pricing references shown on this page are estimates only, based on current Florida commercial real estate market conditions and lender feedback as of the page's last update. They are
not commitments to lend, are not loan approvals or pre-qualifications, and do not guarantee any specific loan terms or that financing will be available to any particular borrower or property. Actual interest rates, fees, leverage, amortization, prepayment terms, and other loan terms depend on borrower qualifications (credit, net worth, liquidity, experience), property characteristics, lender-specific underwriting requirements, third-party reports, and market conditions at the time of application. All loans are subject to lender credit approval, underwriting, and applicable federal, state, and local lending regulations. Linton Global Solutions is a Florida-licensed commercial real estate brokerage (FL Broker #BK703722); it is
not a lender. Financing is sourced through third-party lender relationships, and final loan terms are determined by the originating lender. This page does not constitute consumer credit advertising under Federal Reserve Board
Regulation Z (12 CFR Part 1026) and is intended for informational purposes only for commercial real estate professionals, investors, and owners considering commercial mortgage financing. Past loan terms or transactions do not guarantee future results.
