Commercial real estate works differently than buying a house, and the stakes are often higher — a bad decision here doesn’t just affect where you live, it affects your business. Whether you’re opening a storefront, relocating an office, or looking at commercial property as an investment, here’s what to know before you get started in Bakersfield.

Why Bakersfield for Commercial Property?

Bakersfield’s lower cost of doing business compared to Los Angeles or the Bay Area is a big part of its appeal — commercial lease rates and purchase prices run well below coastal California markets, while the city still sits at a major logistics crossroads with access to Highway 99 and Interstate 5. It’s also one of the fastest-growing metro areas in the Central Valley, which means steady demand from both local businesses and companies relocating from pricier parts of the state.

Types of Commercial Property in Bakersfield

Commercial real estate isn’t one category — the right property type depends entirely on what you’re trying to do:

• Retail space — storefronts, strip malls, and standalone buildings for customer-facing businesses.
• Office space — from single-tenant buildings to multi-tenant office parks.
• Industrial and warehouse — increasingly in demand given Bakersfield’s role in agriculture, oil, and logistics.
• Mixed-use — combining retail, office, or residential in a single development.
• Land — undeveloped or agricultural-zoned parcels for future commercial build-out.

Each type comes with different zoning rules, financing options, and lease structures, so it’s worth being clear on your use case before you start touring properties.

Buying vs. Leasing: How to Decide

This is usually the first major fork in the road.

Leasing makes sense if you want flexibility, lower upfront capital requirements, or you’re not yet sure Bakersfield (or a specific location) is the right long-term fit for your business. It also avoids the responsibilities of property ownership — maintenance, property tax, and insurance become the landlord’s problem, not yours (depending on your lease structure).

Buying makes sense if you have a long-term plan, want to build equity instead of paying rent indefinitely, and have the capital or financing to support a purchase. Owning also gives you control over the space — no landlord dictating what changes you can make or whether your lease gets renewed on favorable terms.

There’s no universally right answer here; it depends on your business stage, cash position, and how confident you are in your location and space needs staying stable for years, not months.

Understanding Commercial Lease Structures

If you do lease, it’s worth understanding what kind of lease you’re signing, since commercial leases distribute costs very differently than residential ones:

• Gross lease — tenant pays a flat rent; landlord covers property expenses.
• Net lease (single, double, or triple net) — tenant takes on some or all of property taxes, insurance, and maintenance in addition to rent. Triple net (NNN) leases are common in retail and shift most ongoing costs to the tenant.
• Percentage lease — common in retail, where rent includes a base amount plus a percentage of the tenant’s sales.

Knowing which structure you’re negotiating changes your real all-in cost significantly, not just the headline rent number.

Costs to Factor In Beyond Rent or Purchase Price

Whether buying or leasing, plan for:

• Property taxes (if buying) — commercial property tax works under the same general California framework as residential, though assessed differently. Our guide on Kern County Property Tax Rates covers the fundamentals of how property tax is calculated in the county.
• Build-out and tenant improvements — modifying a space to fit your business rarely comes free, even in leased spaces.
• Insurance — commercial policies vary significantly based on property type and use.
• Maintenance and CAM fees — common area maintenance charges are standard in multi-tenant properties.
• Zoning and permitting costs — especially relevant if your use requires a variance or special permit.

Financing Commercial Property

Commercial financing works differently than residential mortgages — expect larger down payment requirements (often 20–30%), shorter amortization periods, and more scrutiny on the business’s financials rather than just personal credit. SBA loans (504 and 7(a) programs) are a common path for owner-occupied commercial purchases and can offer more favorable terms than conventional commercial loans.

Work With Someone Who Knows the Local Market

Commercial real estate decisions tend to carry more weight and more complexity than residential ones — lease negotiations, zoning questions, and property-specific tax and cost structures all matter more here. Having a local advisor who understands Bakersfield’s commercial corridors, not just its residential neighborhoods, makes a real difference in avoiding costly mistakes.

At Lockhart Real Estate Advisors, we help business owners and investors navigate both sides of the commercial market — buying and leasing — with the same local expertise we bring to residential clients. If you’re also weighing whether a property makes more sense as a long-term hold or a rental investment, our guide on Turning a Bakersfield Property into a Rental covers some of the same buy-vs-hold thinking from a residential angle.