Owner-Tenant Strategies: How Arizona Business Owners Can Profit from Commercial Real Estate Investment
Why Dual-Use Properties Are Winning in Arizona
Arizona’s booming commercial real estate market presents powerful opportunities for entrepreneurs who own their building. By adopting an owner-tenant strategy—where you house your business and lease extra space—you can optimize ROI, hedge operational costs, and tap into local economic growth.
This article is perfect for business owners asking or searching for the following Scottsdale commercial property investment ideas:
- commercial real estate investment Arizona
- owner-occupied commercial property strategies
- small business property investment Arizona
- real estate rental income strategies for business owners
- dual-use business property
- maximizing commercial real estate investment ROI
- benefits of owning your business location Arizona
- commercial property investment trends 2025
- Scottsdale business property investment
- how to rent out business property in Arizona

Commercial Properties in Scottsdale - How to Profit With Dual-Use Properties
- Commercial property investment has surged in Arizona, with $1.5B in new company capital invested from 2014-2019 and more than 8,000 new jobs created in Phoenix alone (Arizona Commerce Authority).
- Nearly 70,000 active real estate licensees support Arizona’s vibrant market (Arizona Department of Real Estate).
- The professional & business services sector makes up 17% of the Phoenix area’s nonfarm payrolls—a testament to thriving business demand for property.
- Arizona's overall commercial real estate vacancy has hovered between 7-13% in the last five years, helping savvy landlords consistently find tenants (U.S. Department of Labor: BLS).
“When investing in real estate, the essential parts of an investment decision are the determination of an investor's expectation of the return on an investment.”
— Arizona Department of Revenue
Prestige Cleaners—Turning a Business Home into an Income Engine
Prestige Cleaners, Inc. at 13216 N Scottsdale Rd is a smart example:
- The owner built a custom facility for the family business, then created rentable space in the back.
- Rental income helps pay the mortgage, utilities, and even HVAC maintenance.
- When a luxury townhome community was built next door, property value and customer base soared.
The Owner-Tenant Model—How Does It Work?
- You occupy the front/primary portion of your new or existing commercial building.
- You rent out surplus space to another business tenant—retail, service, office, or storage.
- Benefits:
- Offsets monthly bills (especially helpful with rising energy and maintenance costs).
- Creates long-term equity and resale value.
- Increases business resilience by adding passive income.
- Offers flexibility—if your company grows, you can reclaim the tenant space.

How to Optimize Your Owner-Tenant Investment for Maximum Results
1. Master Local Market Trends
Stay alert to neighborhood development. In areas like Scottsdale, watch for residential projects—these can drive up foot traffic, demand, and rents. Such as our example of Presitge Cleaners - a luxury townhome property of 3000 tenants was constructed in the same parking lot, exponentially driving potential customers.
2. Design for Flexibility and Tenant Appeal
- Build with adaptability in mind: private entrances, shared or separated utilities, and flexible floorplans.
- Consider energy-efficient systems to minimize expenses and attract sustainability-minded tenants (see the Arizona Department of Revenue tips).
2025 Trends in Arizona Commercial Real Estate
- Capital inflow remains strong; real estate investments in the Phoenix area continue outpacing national averages.
- Owner-tenant models are increasingly popular with small businesses seeking stability in a fluctuating market.
- Advances in digital marketing (like local SEO) have enabled business owners to attract both tenants and new clientele online.

Frequently Asked Questions (FAQs) Relating to Commercial Properties
What are the key benefits of the owner-tenant model for small businesses?
- Offsets expenses and increases property ROI
- Adds business flexibility and resilience
- Enhances property value in prime locations
How can I find tenants for my surplus business space in Arizona?
- Partner with commercial brokers specializing in the area
- Advertise through local chambers and industry networks
- Optimize your website for “commercial property for rent + [city]” SEO terms
Are there legal considerations unique to Arizona owner-tenant arrangements?
Yes, Arizona’s commercial leasing laws and local tax rules affect lease structure, tenant rights, and property valuation. Familiarize yourself with Arizona Department of Revenue's investor resources.
Is this strategy only for large properties?
No—owner-tenant setups work for buildings of almost any size, from freestanding shops to mixed-use commercial complexes.
Practical Steps to Get Started
- Analyze local demand—research neighborhood growth with Arizona’s economic reports.
- Plan your building for dual use—include desirable tenant amenities and private access.
- Consult design, real estate, and tax professionals.
- Market to ideal tenants using a targeted local SEO strategy.
Scottsdale Commercial Property Income Strategies for Business Owners Who Own Their Building
Secure Your Business’s Future and Build Generational Wealth
If you’re a business owner in Arizona, transitioning from renter to owner can set the stage for long-term wealth. Optimizing your property with the owner-tenant model supercharges returns, futureproofs your business, and enables you to capitalize on the state’s ongoing real estate boom. Leverage smart design, location-aware choices, and expert-backed planning to make your property work harder for you.
For deeper dives, authority statistics, and expert tools on commercial property investment, visit Arizona state resources and bookmark Investment Properties Info today.
Turn Your Business Property Into an Income Engine
If you own your commercial building in Scottsdale, you’re sitting on a major opportunity. By renting out unused space, you can reduce monthly expenses and create an extra income stream—without moving your primary business.
This owner-tenant model:
- Offsets bills — rental income helps cover mortgage, utilities, and maintenance.
- Builds equity — property values in Scottsdale are rising, especially in growth areas.
- Positions you for wealth — steady rental cash flow plus appreciation creates long-term security.
Why It Works in Scottsdale’s Market
With Scottsdale’s strong business environment and new residential developments, demand for well-located commercial space remains high. Owners who design buildings with flexible tenant space can:
- Attract quality renters
- Adjust leases to market rates
- Leverage tax benefits for depreciation and expenses
Win Commercial Real Estate Properties for Long-Term Wealth
Owning and partially leasing your building turns real estate into both a business asset and an investment portfolio. When chosen wisely, your property can:
- Produce ongoing passive income
- Appreciate alongside neighborhood growth
- Support retirement planning or future expansion
Pro Tip: Pair your business with compatible tenants to maximize foot traffic and boost visibility.
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