The short answer
Nearly two-thirds of recorded commercial sales across Broward, Miami-Dade and Palm Beach — 3,820 of 6,096 — fell between $500,000 and $5,000,000, with a median of $1.5M for a 4,155 SF building. Under the SBA 504 structure a borrower contributes as little as 10%, and your business only has to occupy 51% of an existing building, so a tenant can help carry the rest. Whether it beats leasing comes down to how long you will be there and what else that capital could do — and for plenty of businesses the honest answer is still lease.
The question that shows up halfway through a space search
A business owner calls me about 3,000 square feet. We tour four buildings. Somewhere around the third one he says: what would it cost to just buy one of these?
It is the most valuable question in the conversation and almost nobody asks it at the start. Most owners assume buying is a different league — something for later, after the business is bigger. Then they find out the down payment on a building is often less than the security deposit plus buildout on a lease they were about to sign.
I am not going to tell you buying is always right. It frequently is not. But the arithmetic deserves five minutes before you commit to a decade of somebody else’s asset.
What the SBA actually does here
Most small-business purchases of owner-occupied commercial property in Florida run through one of two SBA programs, and the structure is worth understanding before you talk to a lender.
The 504 program splits the purchase three ways: a bank or other third-party lender puts up 50% or more, a Certified Development Company covers up to 40%, and you contribute a minimum of 10%. The CDC share drops to 35% for a new business or a special-purpose property, and to 30% when both apply — which raises your contribution accordingly. Terms come in 10, 20 or 25 years, matched to the useful life of what is being financed.
The occupancy rule is the one that surprises people. For an existing building your business must occupy at least 51% of the space. That means you can buy a building larger than you need and lease out the rest — a tenant in the other 49% paying down your mortgage. For new construction the threshold starts at 60% and has to reach 80% owner occupancy within ten years.
On a $1,500,000 building — the median in the financeable band across the tri-county — a 10% contribution is $150,000. Compare that to what you would spend on a security deposit, a personal guaranty exposure, and an unreimbursed buildout on a lease of the same space, and the gap is usually smaller than owners expect.
I am a broker, not a lender. Rates, fees, eligibility and current program terms come from an SBA lender or a CDC, and they change. What I can tell you is what the buildings cost and whether the one you are looking at is worth it.
What actually trades in the financeable range
| Measure | Figure |
|---|---|
| Sales between $500K and $5M | 3,820 of 6,096 — 62.7% |
| Median price in that band | $1,500,000 |
| Median building size in that band | 4,155 SF |
| Middle half of that band | $857,500 – $2,700,000 |
Recorded arms-length commercial sales in Broward, Miami-Dade and Palm Beach, 2021 through August 2026, screened to remove multi-parcel assemblages.
This is the part owners get wrong in both directions. Some assume nothing in their price range exists; others assume anything does.
Nearly two-thirds of recorded commercial sales across Broward, Miami-Dade and Palm Beach fell between $500,000 and $5,000,000 — 3,820 transactions. The median was a $1.5M building at 4,155 square feet. This is not a market of trophy assets. It is overwhelmingly a market of small buildings bought by the businesses that occupy them.
Which also means you are competing with other owner-users, not with institutions. That is a very different negotiation. Institutions underwrite to a return and walk when the math fails. An owner-user who has decided he wants that building on that road will pay for it. Knowing which one you are bidding against changes what you offer.
The variables that actually decide it
The comparison is not rent versus mortgage payment. Anyone who frames it that way is selling you something.
What matters: how long you will occupy the space. Under five years, buying rarely pencils once you count transaction costs on both ends. Ten years or more and the arithmetic usually flips hard.
Then: what else that capital could do. If $150,000 in your business returns 30% a year, tying it up in a down payment is expensive. If it is sitting in a money market, it is not.
Then: how special your space needs are. A restaurant with a hood and grease trap, a medical suite with plumbing in the walls, a shop with three-phase power — every dollar of that buildout is a gift to your landlord at the end of a lease and an asset on your balance sheet if you own.
And: whether your business is stable enough to be tied to an address. Growing fast and unpredictably is an argument for flexibility, not ownership.
The building itself matters less than owners think in this decision and more than they think in the price. Which is why the two questions get answered separately.
When I tell people to keep leasing
Often. A tenant rep who never recommends leasing is not advising, he is selling.
If you are under three years old as a business, if your headcount could double or halve in eighteen months, if the capital has a better job inside the company, or if the only buildings for sale in your trade area are wrong for you — lease. A bad building you own is far worse than a good building you rent.
The other case: sometimes the right answer is lease now, buy in three years, and structure the lease so it does not trap you. Shorter term, a renewal option instead of a long commitment, and no personal guaranty stretching past the point you intend to move. That is a real strategy and it takes a broker who is thinking past this transaction.
What I do on a purchase
I represent you, not the seller and not the listing. I find what is available including what is not listed, run the comps so you know whether the ask is defensible, and negotiate price and terms.
I will also tell you when the building is wrong. That is most of the value. The market has 76,099 commercial buildings across the three counties and the median one was built in 1982 — there is a great deal of tired inventory being offered at prices that assume you will not look closely.
Send me what you are considering, or tell me what your business needs and I will tell you whether owning makes sense before you spend time on it.
Want the number on your building?
Search the property for an instant public-record snapshot and the closest recorded sales, or send me the address and I will come back inside one business day with a comp-driven range, what I think it would actually trade at, and what I would fix first.
Related resources.
Frequently asked questions about owner-user purchase.
Is it cheaper to buy or lease commercial property in South Florida?
It depends almost entirely on how long you will occupy the space and what else your capital could do. Under about five years, leasing usually wins once you count transaction costs on both ends. Beyond ten years, buying usually wins. Between those, it comes down to your specific numbers, and it is worth actually running rather than guessing.
How much do I need for a down payment on a commercial building?
Under the SBA 504 structure the borrower contribution starts at 10%, with a bank or third-party lender providing 50% or more and a Certified Development Company covering up to 40%. The CDC share falls to 35% for a new business or a special-purpose property and to 30% when both apply, which raises what you put in. On the $1.5M median building in the tri-county financeable band, 10% is $150,000. Confirm current terms with an SBA lender — I am a broker, not a lender.
Can I buy a building bigger than my business needs?
Yes, and it is often the smartest version of the deal. SBA 504 requires your business to occupy at least 51% of an existing building, so you can lease out the remainder and have a tenant help carry the mortgage. New construction starts at 60% occupancy and must reach 80% within ten years.
What size buildings actually sell in this market?
Small ones. Across 6,096 screened arms-length sales from 2021 through August 2026, the median building in the $500K to $5M range was 4,155 square feet. Nearly two-thirds of all recorded sales fell inside that price band. South Florida commercial is overwhelmingly a small-building market.
Who am I competing against when I bid on a small building?
Usually another owner-user, not an institution. That changes the negotiation. An institutional buyer underwrites to a return and walks when the numbers stop working; an owner-user who wants that specific building will stretch. Knowing which one is across from you is worth real money on price.
Should I lease now and buy later?
Sometimes that is exactly right, and it only works if the lease is structured for it. A shorter initial term, a renewal option rather than a long commitment, and a personal guaranty that does not extend past the point you intend to leave. Sign a standard ten-year lease and you have decided not to buy for ten years, whether you meant to or not.