Buy or Lease Your Warehouse? SBA 504 vs. Leasing in the Triad (2026 Math)

For a growing Triad business, the buy-or-lease question comes up the moment you outgrow your current space. Here's how to think about it with 2026 numbers.

The financing: SBA 504

The SBA 504 program is built for owner-occupied commercial real estate:

• About 10% down. A bank lends about 50%; a Certified Development Company (CDC) lends about 40% through an SBA-guaranteed debenture.
• Long, fixed rate on the SBA portion. The 25-year debenture rate was about 6.97% at the October 2026 sale, with lower pricing for some manufacturers. The bank portion is priced separately.
• Occupancy requirement. Generally 51% of an existing building, or 60% of new construction.

A worked example

A 20,000 SF warehouse bought for $110/SF = $2.2 million.

Buying (illustrative):

• Down payment (10%): $220,000
• Financing $1.98M at a blended ~7% over 25 years: about $14,000/month principal and interest
• Plus property taxes, insurance, maintenance and a reserve for roof and HVAC

Leasing a comparable building:

• At $8.00/SF NNN: about $13,300/month base rent
• Plus NNN charges (taxes, insurance, CAM), which an owner would also pay

On these assumptions the monthly cost is close. The difference is that the owner pays down principal every month and keeps any appreciation, while the tenant keeps $220,000+ of cash in the business and can move at lease expiration.

Illustration only. Your price, rate, rent and terms will differ; run your own numbers with your lender and CPA.

Costs owner-users often miss

• Capital repairs. A roof or HVAC replacement can cost hundreds of thousands of dollars. Tenants on many NNN leases share or avoid some of that; owners pay all of it.
• Property tax reassessment. In Guilford and Davidson counties, 2026 values are expected to apply from fiscal 2027-28, often well above prior values. Underwrite the new assessment.
• Opportunity cost. The down payment and closing costs could fund equipment, inventory, or hiring.
• Exit flexibility. If you outgrow the building in five years, selling takes time and money.

When buying usually wins

• You'll stay 7–10+ years and the building fits your long-term plan.
• You can lease surplus space to offset cost.
• You want control over improvements (power, cranes, docks).
• Rents in your submarket are high relative to purchase prices, as in parts of Kernersville and Greensboro.

When leasing usually wins

• Growth is fast or uncertain.
• Cash is better used in the business.
• The right building isn't for sale where you need to be.

Next step

Matt can show you both: buildings for sale that fit your requirements and comparable lease options, side by side on total cost. Send your requirements.

Sources

• Crowdfunded Wealth — SBA 504 loan rates 2026 (citing SomerCor) (Oct 2026)
• Cushman & Wakefield, Greensboro/Winston-Salem Industrial MarketBeat Q3 2026 (Oct 15, 2026)