Lease vs Own in Conejo Valley, Ventura & San Fernando Valley: A Financial Guide for Physicians and Professionals

Lease vs Own in Conejo Valley, Ventura & San Fernando Valley: A Financial Guide for Physicians and Professionals

Introduction

For physicians, dentists, and professional service providers in Conejo Valley, Ventura County, and the San Fernando Valley, one of the most important financial decisions is whether to lease or own commercial space. With interest rates, construction costs, and property values shifting in 2025, the lease-versus-own question has never been more relevant. In this guide, we’ll explore current lease rates, purchase prices, financing options, and long-term financial considerations across these three core markets.

Current Lease Rates in Conejo Valley, Ventura & San Fernando Valley

Each submarket has its own dynamics, but 2025 lease rates show some consistent patterns:

• Medical office rents:

  • Conejo Valley: $2.85 – $4.25 per SF/month (close to Los Robles, Rolling Oaks).

  • Ventura County: $2.75 – $4.00 per SF/month (near Ventura County Medical Center, coastal demand).

  • San Fernando Valley: $2.75 – $4.25 per SF/month (Northridge, Encino, Woodland Hills).

• General office rents: averaging $2.25 – $3.50 per SF/month across all three markets.

• Lease structures: Modified Gross is common in professional buildings; larger multi-tenant properties often use NNN.

Leasing remains attractive for groups that value flexibility or have limited upfront capital, but escalating rents can significantly increase long-term costs.

Purchase Prices & Financing Options

Ownership is especially attractive in these markets for established practices.

• Medical office sales comps:

  • Conejo Valley: $400 – $700 per SF.

  • Ventura County: $375 – $600 per SF.

  • San Fernando Valley: $500 – $850 per SF, with Woodland Hills/Encino at the higher end.

• Financing options:

  • SBA 504 loans: 10% down, fixed 20–25 year terms, excellent for owner-users.

  • SBA 7(a) loans: flexible but often shorter terms or higher rates.

  • Conventional loans: usually require 20–25% down.

• Tax benefits: depreciation, interest deductions, equity buildup.

Ownership provides stability and long-term wealth building — especially for professionals planning to remain in their market for 7–10+ years.

Comparing Costs Over 10 Years

Leasing Example (10,000 SF at $3.25/SF):

• Year 1 rent = $32,500/month.

• With 3% annual escalations, 10-year rent ≈ $4.7M.

Ownership Example (10,000 SF purchase at $600/SF):

• Price = $6M.

• SBA 504 loan = $600K down (10%).

• Monthly PITI often higher than rent initially, but after 10 years, equity and appreciation offset costs.

Leasing offers flexibility, but ownership locks in costs, hedges against inflation, and builds long-term wealth.

Who Should Lease vs Own?

Leasing may be best for:

• New practices still growing patient bases.

• Groups uncertain about long-term size or location needs.

• Tenants who want relocation or expansion flexibility.

Owning may be best for:

• Established practices with stable operations.

• Professionals planning to stay 10+ years in Conejo, Ventura, or SFV.

• Owners interested in equity, depreciation, and long-term control.

Conclusion

Whether you practice in Conejo Valley, Ventura County, or the San Fernando Valley, the lease-versus-own decision in 2025 comes down to your stability, goals, and financial resources. Leasing provides flexibility and low upfront costs, while ownership offers control and wealth-building potential. A side-by-side financial analysis tailored to your practice is the best way to make the right decision.

Call to Action

Considering leasing or owning medical or professional office space in Conejo Valley, Ventura County, or the San Fernando Valley? I provide financial modeling, SBA loan guidance, and local market expertise to help you make the right choice. Contact me today.