Fountain Valley is a middle class bedroom community in Orange County, California, with a population of 55,313 in 2010, based on the U.S. Census. The majority of residents commute, and mainly to the Southpark district near the Santa Ana River, which is a new commercial center. Historically, the economy of the city was based largely on agriculture, but this has now largely been replaced by office buildings. The city government has indicated its commitment to supporting small businesses, encouraging its residents to start their own businesses. Companies such as Surefire, LLC, Kingston Technology, D-Link Corporation, and Hyundai Motor America, have their headquarters located in this city, but most of them are found in the Southpark district.
Fountain Valley Retail Building for Sale & Lease – Should You Buy or Lease?
If you are interested in retail space in Fountain Valley, be that as an investment or to run a business out of, you can either buy or lease. There are pros and cons for both of these choices.
With regards to buying retail space, the pros include the fact that:
- Your monthly costs remain unchanged throughout the duration of the mortgage.
- You can file for a number of tax deductions, including property taxes and mortgage interests.
- You can lease out some of the retail space, assuming that it is large enough, so that you can earn extra income.
- You get to benefit from tendency of property prices to go up over time.
Meanwhile, the downsides of buying include the fact that:
- You don’t have much flexibility. If your business grows much faster than expected or you suddenly decide to shut down the business, you will have to sell the property first before you can move on.
- You have large initial costs. First of all there is at least a 30% down payment for the mortgage. You will also have to pay for maintenance, appraisal, and other property costs.
On the other hand, if you lease retail space, the benefits include the fact that:
- You can lease prime retail space, which can do wonders for your business reputation.
- You can more working capital because you don’t need to pay for a down payment.
- You are not bothered by the usual problems that come with property ownership.
With regards to the disadvantages of leasing retail space, these include the fact that:
- Your monthly costs will go up as the rent increases.
- You do not build up any equity in the property because you don’t own it.
Let us now take a look at the trends and statistics in terms of prices, supply, and demand, which could help in your decision whether to buy or lease.
Fountain Valley Retail Property for Sale – Trends and Statistics
- The asking prices for retail properties in Fountain Valley 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) area and state ($214.98) area.
- The index of total dollars available for retail properties for sale in Los Angeles-Long Beach-Fountain Valley is 45, which represents a 9.7% increase over the past three months and 7.1% increase year on year.
- The index of total number of listings of retail properties available in Los Angeles-Long Beach-Fountain Valley 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 retail for sale in the Los Angeles-Long Beach-Fountain Valley 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-Fountain Valley metro area is 34, which is a 3.2% increase over the past three months, but an 8.5% decrease year on year.
Fountain Valley Retail Property for Lease – Trends and Statistics
- The asking rent for retail properties for lease in Fountain Valley 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-Fountain Valley 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-Fountain Valley 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-Fountain Valley area is 69, which is a 5.3% increase over the past three months, and a 3.3% increase year on year.