Commercial Real Estate for Accounting Firms: Buying vs. Leasing Your Office
For many accounting and tax firms, rent is one of the largest fixed expenses after payroll. At some point, many owners ask whether they should stop paying rent and buy an accounting firm office building or office condominium instead.
Owning can build long-term equity and give the firm more control over its space. Leasing can preserve cash and flexibility. The right answer depends on the firm’s size, growth plans, succession timeline and financial position.
This guide walks through the decision from an accounting firm’s perspective, explains common financing options for owner-occupied property, and highlights a question many owners overlook: what happens to the building when the practice changes hands?
For an overview of property financing for CPA and tax practices, see our accounting firm commercial real estate financing page.
Why Accounting Firms Consider Buying Their Office
Accounting firms tend to have stable, long-term space needs, which can make ownership attractive. Common reasons owners consider buying include:
- Building equity instead of paying rent to a landlord
- More predictable occupancy costs over time
- Control over renovations, layout and signage
- Protection from lease non-renewal or relocation
- The option to lease unused space to other tenants
- A potential long-term asset separate from the practice itself
When Leasing May Still Make More Sense
Ownership is not right for every firm. Leasing may be the better choice when:
- The firm expects its space needs to change significantly
- Remote or hybrid work may reduce the office footprint
- Cash is better used for acquisitions, technology or hiring
- The owner plans to sell or retire in the near term
- Suitable properties are not available in the firm’s market
Buy vs. Lease: A Decision Framework
| Question | Leans toward buying | Leans toward leasing |
|---|---|---|
| How long will the firm stay in this market? | Long-term, stable presence | Uncertain or short-term |
| How stable are space needs? | Predictable headcount and layout | Growing, shrinking or moving toward remote work |
| What is the best use of available cash? | The firm can fund the down payment and still maintain reserves | Cash is needed for growth, acquisitions or technology |
| What is the owner’s timeline? | Long runway before succession or sale | Retirement or sale expected soon |
| Is there a plan for the building if the practice is sold? | Yes — lease to buyer, sell with practice, or hold as an investment | No clear plan |
Financing Options for an Owner-Occupied Office
SBA 504 Loans
The SBA 504 loan program is designed for owner-occupied commercial real estate and major fixed assets. It is commonly considered for purchasing, constructing or renovating a building the business will occupy. The program has owner-occupancy and eligibility requirements that should be confirmed with a lender for any specific property.
SBA 7(a) Loans
The SBA 7(a) program can also be used for owner-occupied real estate and may allow a single loan to cover property along with other eligible business needs.
Conventional Commercial Real Estate Loans
Conventional real estate loans may suit established firms with strong financial performance, particularly when the firm wants a structure outside SBA program requirements.
For a broader comparison of SBA and conventional financing, see our guides to SBA loans for accounting firms and conventional loans for accounting firms.
Office Buildings vs. Office Condominiums
Accounting firms often do not need an entire building. An office condominium can offer ownership of a smaller space with shared maintenance of common areas. A small multi-tenant building can allow the firm to occupy part of the space and lease the rest, subject to the occupancy rules of the chosen financing program.
Each option carries different considerations for maintenance responsibilities, association rules, tenant management and resale.
Ownership Structure: Practice and Property
Many professional-practice owners hold real estate in a separate entity that leases the space to the operating practice. This can keep the property distinct from the practice for succession, liability and planning purposes. The right structure depends on legal, tax and financing considerations, so owners should decide it with their attorney, tax advisor and lender before closing.
The Question Most Owners Overlook: What Happens When You Sell the Practice?
An accounting firm’s building and its practice may have different futures. Before buying, consider the realistic options at succession or sale:
- Lease the space to the buyer. The owner keeps the building and collects rent from the new practice owner.
- Sell the building with the practice. This increases the total transaction size, which can affect the buyer’s financing needs.
- Sell the building separately. The buyer relocates the practice, and the owner sells or leases the property to others.
- Hold the building as an investment. The owner leases it to unrelated tenants.
A building that suits only an accounting practice’s current layout may be harder to lease or sell later. Considering flexibility at purchase can protect both the practice sale and the property’s long-term value. Our guide to selling an accounting practice covers the practice side of the transaction.
Planning for Seasonal Space Needs
Accounting firms often need more space during busy season for seasonal staff, client meetings and document handling. When evaluating a property, consider whether the space can accommodate peak-season needs without paying year-round for space used only a few months a year.
Estimating the Payment
Use the SBA Loan Calculator and Conventional Loan Calculator to compare estimated payments with your current rent and other occupancy costs. Remember to include property taxes, insurance, maintenance and repairs. Calculator results are estimates only.
Frequently Asked Questions
Can an accounting firm use an SBA loan to buy its office?
Yes. SBA 504 and SBA 7(a) loans can both be used for eligible owner-occupied commercial real estate, subject to program and lender requirements.
Should the practice or a separate entity own the building?
Many owners use a separate entity that leases the space to the practice. The right structure depends on legal, tax and financing considerations reviewed with advisors.
Is it better to buy or lease an office for a small CPA firm?
It depends on space stability, cash priorities and the owner’s timeline. Firms with long-term, predictable needs and a clear plan for the building at succession are often better positioned to buy.
What happens to the building when I sell my practice?
Common options include leasing it to the buyer, selling it with the practice, selling it separately or holding it as an investment. Deciding this before purchase makes the eventual sale easier.
Final Thoughts
Buying an office can be a strong long-term decision for an accounting firm with stable space needs and a clear plan for the property’s future. Leasing remains the better fit for firms that value flexibility or need their capital elsewhere.
The key is to evaluate the decision in the context of the firm’s growth, cash flow and succession plans — not rent alone.
