Garden Grove is a city found in the northern part of California’s Orange County. It is just 34 miles to the south of the Los Angeles city border. According to the 2010 U.S. Census, it had a population of 170,883 at that point in time. The city is home to the Garden Grove Freeway, which is State Route 22, and this cross the city from east to west. West Garden Grove is, of course, found in the western part of the city.
Garden Grove Warehouse Building for Sale & Lease – Should You Buy or Lease?
If you are interested in warehouse space in Garden Grove, be that as an investment or to run a business out of, you have two broad options available to you: buying or leasing. There are pros and cons to both of these options.
Looking first at buying warehouse space, the pros include:
- The fact that your costs are fixed, which means there will hardly be any surprises..
- The fact that you can get really good tax deductions, including property taxes and mortgage interest.
- The fact that you can rent out some of your space so that you can earn an extra income.
- The fact that you can build up a substantial profit when you sell the property later on, as the property is likely to appreciate over time.
However, the cons are substantial as well and include:
- Not having much flexibility, because you will need to sell the property first if you need to move your business somewhere else. This will take a much longer time, compared to when you are just renting.
- Having high upfront costs, because you will need to shell out at least 30 percent of the selling price as down payment. You will also have maintenance, appraisal, and other property costs to pay.
Your other option is to lease your warehouse space, which also has some clear benefits, including the fact that:
- You can free up some working capital because you don’t have to pay for a substantial down payment.
- You can focus on actually running your business, rather than on the stresses of property ownership.
However, there are some downsides as well, including the fact that:
- Your costs will gradually increase, as the rent increases over 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 be very beneficial.
Garden Grove Warehouse Property for Sale – Trends and Statistics
- The asking price for warehouse properties in Garden Grove 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 state (142.69) and the metro ($195.29) area.
- The index of total available warehouse properties for sale in Los Angeles-Long Beach-Garden Grove 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-Garden Grove is 26, which is a 7.7% increase over the past three months, but a 7.2% increase year on year.
- The profile view index warehouse property for sale in the Los Angeles-Long Beach-Garden Grove 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-Garden Grove metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Garden Grove Warehouse Property for Lease – Trends and Statistics
- The asking rent for warehouse properties for lease in Garden Grove 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) and metro ($11.75) area.
- The index of total number of warehouse spaces for lease in the Los Angeles-Long Beach-Garden Grove 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-Garden Grove 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-Garden Grove area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.