Fountain Valley is a middle class bedroom community in Orange County, California, that has a population of 55,313 as of 2010. The majority of the residents commute, and mainly to the Southpark district, which is a new commercial center near the Santa Ana River. Historically, its economy was mainly agricultural in nature, but this changed with the emergence of many office buildings. The city is committed to supporting small businesses, encouraging its residents to start their own enterprises. Several headquarters (Surefire, LLC, Kingston Technology, D-Link Corporation, and Hyundai Motor America) can be found in the city. Most of these are located in the Southpark district.
Fountain Valley Warehouse Building for Sale & Lease – Should You Buy or Lease?
If you are interested in getting some warehouse space in Fountain Valley, be that as an investment or to run a business out of, you have two broad options: buying or leasing. There are pros and cons to both of these options, so let us take a look.
The benefits of buying warehouse space include the fact that:
- Your costs are fixed because the monthly amortization would not change during the duration of the mortgage.
- You can benefit from a number of tax deductions, including property taxes and mortgage interests.
- You can rent out some of the warehouse space in order to have another source of cash flow.
- The property value will tend to increase over time.
Meanwhile, the cons of buying warehouse space include the fact that:
- You don’t have much flexibility, which means that if your business grows too fast, you may have to sell the property before you can move to another location. The same thing would happen if the business declines that you decide to shut it down.
- You have high initial costs. This is because you need to pay at least a 30% down payment on the mortgage. You will also need to take care of the maintenance, appraisal, and other property costs.
On the other hand, if you simply lease warehouse space, the benefits include the fact that:
- You can lease prime property, which is important if your public image matters.
- You can free up working capital because you don’t have to pay for a deposit.
- You can focus on actually running your business because you don’t have to worry about the various concerns that come with property ownership.
Leasing warehouse space also has some downsides, such as the fact that:
- Your monthly costs will tend to rise because rent will increase at certain points in time.
- You do not build up any equity in the property, since you don’t own it.
To help choose between the two options, being aware of the trends and statistics in terms of prices, supply, and demand, can help.
Fountain Valley Warehouse Property for Sale – Trends and Statistics
- The asking prices for warehouse properties in Fountain Valley in dollars per square foot is $222.13, which is a 2.7% increase over the past three months, and a 10.9% increase year on year. This is higher than the metro ($195.29) and state ($142.69) area.
- The index of total dollars available for warehouse properties for sale in Los Angeles-Long Beach-Fountain Valley is 28, which represents a 6.7% increase over the past three months but a 2.9% decrease year on year.
- The index of total number of listings of warehouse properties available in Los Angeles-Long Beach-Fountain Valley is 26, which is a 7.7% increase over the past three months, and a 7.2% increase year on year.
- The profile view index warehouse property for sale in the Los Angeles-Long Beach-Fountain Valley metro area is 174, which is a 19.2% increase over the past three months, and a 30.9% increase year on year.
- The index of total square feet of available warehouse space for sale in the Los Angeles-Long Beach-Fountain Valley metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Fountain Valley Warehouse Property for Lease – Trends and Statistics
- The asking rent for warehouse properties for lease in Foutain Valley in dollars per square foot per year is $12.93. This represents a 1.3% increase over the past three months, and a 10.1% increase year on year. This is higher than the state ($10.31) area and the metro ($11.75) area.
- The index of total number of warehouse spaces for lease in the Los Angeles-Long Beach-Fountain Valley area is 34, which represents a 0.5% decrease over the past three months, and an 11.9% decrease year on year.
- The profile view index for warehouse properties for lease in the Los Angeles-Long Beach-Fountain Valley area is 128, which is a 51.9% decrease over the past three months, and a 43.5% decrease year on year.
- The index of total square feet of warehouse space available for lease in the Los Angeles-Long Beach-Fountain Valley area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.