Every thriving Southern California manufacturing or logistics company started somewhere — often at a kitchen table or in a garage.
What happens between that first spark of an idea and the eventual decision to sell the company is a fascinating and often overlooked journey. The throughline? Real estate.
Stages of business growth
The idea stage: Often a home-based operation, most businesses start small. At this stage, real estate decisions are limited, but the dream of expansion is already forming.
Lease vs. buy: The first big decision.
As soon as a company outgrows the home, it’s time to lease or buy space. Leasing provides flexibility, but ownership plants the first seeds of wealth building.
Owning your building: Many family operators eventually buy the building they occupy. This decision transforms monthly rent payments into an appreciating asset that can outlast the business itself.
Growth through expansion or acquisition: Success brings complexity such as hiring more people, adding machinery, opening new locations, or acquiring competitors. Each move requires thoughtful real estate strategy.
Exit planning and the role of real estate. Eventually, founders face succession or sale. If selling to a strategic operator, the real estate may be carved out of the deal. If selling to private equity, the real estate is often critical to their investment thesis.
The hidden lesson
In many cases, I’ve seen the real estate owned by the business worth far more than the operation itself. That building becomes not just a workplace but a long-term family asset, a hedge against business cycles, and a powerful vehicle for generational wealth.
The journey of a family-owned business in Southern California is never just about products, people, or profits—it’s also about property. Whether starting in a garage or exiting through a private equity sale, real estate is the silent partner that can shape the legacy of a business for generations.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.