While overall sales volume for real estate assets (excluding multifamily) has been a mixed bag in 2025, one area where there has been an uptick is in owner-user sales, especially on the office side, according to multiple reports.
In addition to the usual case for business owners becoming owner-users, such as building equity and receiving tax breaks (depreciation, mortgage interest, property taxes, and maintenance costs), other considerations may make buying versus leasing more attractive in today’s economic climate. Asset pricing in many markets is softening, especially for office properties, which have seen a precipitous drop in non-trophy assets. Second, the pullback from institutional buyers on the larger assets has reduced competition for industrial buildings.
While loan rates remain elevated compared to pre-pandemic levels, 2025 has offered a more predictable lending environment for users looking to control costs. With rates hovering around 4.25–4.50%, many small to mid-sized companies are deciding to invest in their own facilities rather than paying persistently elevated rents. There is also growing optimism surrounding rate cuts between now and the end of the year.
According to recent reports, the probability of the Federal Reserve cutting interest rates in September is high, with markets pricing an 85–90% chance of a 25-basis-point cut following a weak August jobs report that showed slow economic growth. While a cut is widely expected, a larger 50-basis-point reduction is considered a long shot, with about an 11% probability, according to the CME FedWatch Tool. Bank of America predicts that the Federal Reserve will cut interest rates twice in 2025, with 25-bps cuts in September and December, a change from their earlier forecast of no cuts until 2026. If enacted, those cuts would bring the federal funds rate down to 3.75–4.00%.
Office Users Increasingly Becoming Owners
While companies purchasing their own real estate has long been associated with industrial users, the practice has become increasingly popular with office users. In a recent article, ULI reported that these types of acquisitions accounted for 20% of total U.S. office sales in the first quarter of 2025, up from 15% for the 12 months of 2024. Before the pandemic, owner-occupier office deals accounted for 8% or less annually. One significant deal in Southern California was Los Angeles County acquiring the 1.3 million-square-foot Gas Company Tower in downtown Los Angeles at 555 W. Fifth Street for $200 million in December 2024.
One of the primary drivers behind the surge in ownership by office users is Big Tech, which is taking advantage of the stressed office market by acquiring their own offices, often at a steep discount. Apple, Nvidia, LinkedIn, Amazon, Bet365, and LendingClub have recently purchased their office space. Apple made three major office acquisitions this year, including leasing two office campuses in the Bay Area. They acquired the Cupertino Gateway complex for $167 million in late June and the Mathilda Commons campus in Sunnyvale for $365 million in late July. In May, Nvidia made an all-cash $123 million purchase of a 10-building campus near its Santa Clara HQ, and LinkedIn paid $75 million for its new digs, also in Sunnyvale.
Not all of the owner-users involve large deals, and there is a robust market for smaller office owner-users, according to Garrett Fena, SIOR, SVP and Partner in Voit’s San Diego office. “There’s a general perception that the office market is [in trouble], but with the exception of the Downtown, San Diego County has remained relatively healthy, outperforming the national averages,” says Fena. “Demand for the 1,000 to 5,000-square-foot spaces (which comprise 85% of all office tenants in San Diego County) is especially high, so with lease rates remaining at or above 2021 levels, and quality options limited, the demand for those spaces is high.”
Many office and medical tenants are now exploring their real estate options as the benefits of becoming owner-users — such as fixed real estate expenses, the ability to control their own space, and building long-term value through equity appreciation and principal paydown — are appealing. However, the challenge for those seeking to become owner-users in San Diego is the lack of options, especially for high-end, amenity-rich, Class A space. Fena says that demand has attracted investors to the office condominium market.
For instance, last spring, Abington Emerson, a privately held investment firm, acquired a pair of office buildings at 5665 and 5677 Oberlin Drive in Sorrento Mesa to convert to office condominiums. “The Collective” project, strategically positioned in the heart of San Diego’s biotech and technology cluster, is undergoing a complete interior and exterior renovation geared towards office and medical users. The Collective will offer a wide range of options, with units from 780 to 5,628 square feet, and expects demand to be robust, given the current market conditions. Fena, whose team has completed over 30 owner-user sales since 2023, will be the listing broker for the property.
Industrial Owner-Users Still Active in the Market
Although many industrial users are still taking a ‘wait-and-see’ approach before making long-term commitments due to economic uncertainty and tariff policy, owner-users are still active in the market. One of the largest owner-user deals in the nation occurred in Riverside earlier this year when Burlington Distribution acquired the 889,445-square-foot warehouse at 21600 Cactus Avenue from BlackRock for $257 million ($289 PSF). CoStar reports that the purchase reflects Burlington’s shift toward ownership of its logistics property network, a strategy intended to reduce operating costs and better control long-term capital investments. The Inland Empire deal was the company’s second major acquisition this year, following the purchase of a distribution center in the Port of Savannah in Georgia for $206 million.
Voit Brokers Active in Owner-User Sales
Voit brokers have extensive experience assisting their clients in selling and acquiring properties for owner-users. Here are some of the highlights of 2025:
In April, Michael Hefner, SIOR, EVP and Partner, and Mike Vernick, SIOR, SVP and Partner of Voit’s Anaheim office, directed the $13.2 million sale of a 49,506-square-foot industrial building at 2249 S. Yale Street in Santa Ana. They represented the seller, Stage Stop 8, LLC, and also the buyer, Daytona Holding, LLC, a locally owned manufacturing company that uses the property as an auxiliary facility for its Southern California operations.
The property presented many marketing challenges, including a flag lot access, low clearance, limited truck loading, and deteriorating market demand, but the Hefner Vernick Team emphasized the property’s recent renovations, secured lot, and central Orange County location with convenient access to 405, 55, and 5 freeways to get the deal done.
In February, Todd Holley, SIOR, SVP and Partner, and Connor Usselman, Senior Associate, of the San Diego office successfully directed the $7.5 million acquisition of a 20,352-square-foot industrial warehouse in San Diego. The Voit team represented the buyer, Coyotarts LLC, an international transportation and logistics company based in San Diego, while the seller, Santa Monica Produce Inc., was represented by Phil Linton of CBRE. The property had undergone numerous specialized property improvements, but Holley and Usselman were able to secure the property at a favorable price. Coyotarts LLC is now using the facility for the distribution of food products, primarily meat and produce.
More recently, Juan Gutierrez, SIOR, EVP and Partner in the Ontario office, represented the owner in the $8 million sale of a 24,500-square-foot ($327 PSF) industrial building to an owner-user. This sale and several others in the same size range across the Inland Empire highlight the increasing owner-user activity Voit has seen in recent months.
Talk with one of Voit Real Estate Services’ trusted commercial real estate advisors to help you find a property that fits your business needs.