F
rom a kitchen table or a garage, most Southern California manufacturers and logistics firms begin. The journey from that first spark to a sale or succession is largely shaped by real‑estate decisions.
At the idea stage, operations are home‑based and property concerns are minimal, yet the vision for growth is already forming. The first major choice is whether to lease or buy. Leasing offers flexibility; buying plants the seeds of long‑term wealth.
Family‑run businesses often purchase the premises they occupy. Converting rent into an appreciating asset can outlast the company itself. As operations expand—new hires, equipment, additional sites, or acquisitions—each move demands a deliberate real‑estate strategy.
When founders consider an exit, real‑estate plays a pivotal role. A sale to a strategic buyer may exclude the property, while a private‑equity transaction often hinges on the asset’s value.
The lesson is clear: the property owned by a family business frequently exceeds the value of the business itself. It becomes a lasting family asset, a buffer against market swings, and a conduit for generational wealth.
Thus, the story of a Southern California family enterprise is not only about products, people, or profits—it is also about property. Whether the journey begins in a garage or ends with a private‑equity deal, real‑estate remains the quiet partner that shapes a legacy for years to come.
Allen C. Buchanan, SIOR, Principal, Lee & Associates Commercial Real Estate Services, Orange, CA. Email: [email protected] | Phone: 714‑564‑7104
