Why 2026 Is a Strong Year for Owner-User Commercial Real Estate in Folsom
Every few years, the commercial real estate market gives business owners a window where buying their own building makes more sense than renewing a lease. Folsom is in one of those windows right now. Prices have stabilized, SBA financing is still accessible, and rising rents are pushing many owners toward ownership.
I’m Matt Bingaman, and here’s what every business owner should be thinking about right now.
Why Folsom Is a Strong Owner-User Market
Folsom benefits from:
• Strong workforce
• High household incomes
• Proximity to major employers like Intel
• Business-friendly environment
Small and mid-size buildings don’t trade often. When they do, owner-users have an advantage because they can value the property as both real estate and a business location.
The Math of Buying vs. Leasing
If you’re paying $4,000/month in rent:
• ~$48,000/year goes to a landlord
• Rent increases annually
If you buy:
• ~10% down with SBA financing
• Payments build equity
• Appreciation adds long-term value
Over time, this often results in hundreds of thousands in equity vs. zero from leasing.
Additional advantages:
• Depreciation
• Interest deductions
• Potential cost segregation benefits
Where Owner-Users Are Looking
Most active segments:
• Flex / industrial (3,000–10,000 SF)
• Office condos (Empire Ranch + Historic District)
• Mixed-use buildings
• Medical and dental spaces
The key to winning deals:
• Get pre-qualified with an SBA lender
• Be ready to move fast
1031 Exchange Considerations
You cannot directly 1031 into an owner-user building.
Typical structure:
• Start as an investor
• Lease to yourself
• Convert to owner-user later
Risks to Watch
Ownership may not fit if:
• You expect rapid growth
• Cash flow is inconsistent
• The space is highly specialized
Best-fit businesses are:
• Stable
• Profitable
• Planning to stay 7–10+ years
Thinking About Your Next Move?
Call or text: 916-513-0217
Email: matt@pdf-usa.com
Schedule: https://calendly.com/bingamanrealty/15-min-consultation
— Matt Bingaman
Commercial Real Estate Broker #02139034
eXp Commercial
Serving Greater Sacramento & El Dorado County