Buena Park is located in the northwest portion of California’s Orange County. It is to the northwest of the county seat, Santa Ana, as well. According to the 2010 U.S. Census, some 80,530 people lived there at that time, making it a relatively small city. Interestingly, although it is part of Orange County, it is found within the Los Angeles metropolitan area. Buena Park is very attractive to tourists, particularly because it is home to Knott’s Berry Farm, as well as a number of other tourist attractions. Knott’s Berry Farm is also the city’s largest employer, with some 5,071 people working there. Other top employers in the city include Prologis, Leach, the Access Business Group, PepsiCo, J.C. Penney, ADP, Yamaha, the RIA Financial Services, and the City of Buena Park. The city, which started as an agricultural center, was incorporated on January 27, 1953. Its economy, at that time, focused on citrus products, like much of the rest of county, but also on wine and dairy. Today, only a little of this agricultural heritage remains. Rather, Buena Park has become a residential community, as well as a commercial hub.
Buena Park Retail Building for Sale & Lease – Should You Buy or Lease?
If you are interested in getting a retail building, whether for running your business from or simply as an investment, you have two options: buy or lease the property. It should be noted, however, that there are pros and cons for both alternatives.
Buying retail space has a number of benefits, such as the fact that:
- Monthly expenses are constant because amortizations are usually fixed.
- You can file several tax deductions, including property taxes and mortgage interest.
- If you need extra cash inflow, you can rent out some of the retail building. Just make sure that lessees have businesses that are not in competition with you.
- You can accumulate funds as the value of the retail building goes up over time.
Meanwhile, there are disadvantages as well:
- Retail buildings, just like other real property are hard to dispose of in case you want to close your business or move to another location. It requires several months to complete a sale.
- You will need to have a fairly large capital because of the required down payment.
When it comes to simply leasing a retail building, there are some benefits:
- It is possible to rent a prime retail property, which can boost the reputation of your store or business
- You need much less capital to get started because there is no down payment.
- You don’t have to be bothered about the various issues that property owners need to deal with.
Naturally, there are some disadvantages when leasing a retail property:
- Costs tend to go up mainly because the rent can increase, depending on the lease contract.
- You don’t have the opportunity to build up equity in the property, since you don’t own it.
Below are the trends and statistics in terms of prices, supply, and demand for both owning and leasing retail buildings in Buena Park.
Buena Park Retail Property for Sale – Trends and Statistics
- The asking prices for retail properties in Buena Park in in dollars per square foot is $408.88, which has remained the same over the past three months, but represents a 14.5% increase year on year. This is higher than the metro ($282.45) and state ($214.98) area.
- The index of total available retail properties for sale in Los Angeles-Long Beach-Buena Park is 45, which represents a 9.7% increase over the past three months and a 7.1% increase year on year.
- The index of total number of listings of retail properties available in Los Angeles-Long Beach-Buena Park is 35, which is a 2.6% decrease over the past three months, as well as a 10.6% decrease year on year.
- The profile view index of retail buildings for sale in the Los Angeles-Long Beach-Buena Park metro area is 123, which is a 10.6% increase over the past three months, and a 14.7% increase year on year.
- The index of total square feet of available retail space for sale in the Los Angeles-Long Beach-Buena Park metro area is 34, which is a 3.2% increase over the past three months, but an 8.5% decrease year on year.
Buena Park Retail Property for Lease – Trends and Statistics
- The asking rent for retail properties for lease in Buena Park in dollars per square foot per year is $24.21. This represents a 0.9% decrease over the past three months, but a 0.4% increase year on year. This is higher than the state ($20.88) area, but lower than the metro ($24.88) area.
- The index of total number of retail spaces for lease in the Los Angeles-Long Beach-Buena Park area is 71, which represents a 2.4% increase over the past three months, and a 1.4% increase year on year.
- The profile view index for retail properties for lease in the Los Angeles-Long Beach-Buena Park area is 91, which is a 49.3% decrease over the past three months, and a 47.5% decrease year on year.
- The index of total square feet of retail space available for lease in the Los Angeles-Long Beach-Buena Park area is 69, which is a 5.3% increase over the past three months, and a 3.3% increase year on year.