Placentia is located in the northern part of California’s Orange County. It had 50,533 residents as of 2010, which makes it a relatively small city. Nevertheless, that actually represented a substantial increase in population because in 2000 it was just 46,488. The city, which includes the Atwood community, is a quiet and mostly bedroom community. It was bestowed with the “All America City” award in 1971 from the National Civic League.
In 2013, a $20 million investment was provided for the Metrolink project in downtown Placentia, which was funded in part by the Orange County Transit Authority (OCTA). This has the goal of revitalizing the area and will include the construction of new homes, entertainment, retail, and mixed used properties, as well as the train station. The city is also working on the OC Bridges project together with the OCTA and the city of Fullerton, which is scheduled to be completed in 2017.
Placentia Office Buildings for Sale & Lease – Should You Buy or Lease?
If you are interested in office space in Placentia, you have to choices: buying or leasing. It should be pointed out that there are pros and cons for both of these options.
When buying office space, the pros include the fact that:
- Your monthly costs for the use of the office space will be basically constant because monthly amortizations usually remain unchanged for the duration of the mortgage.
- You can get really good tax deductions, including property taxes and mortgage interests.
- You can rent out some of the office space so that you can earn extra income.
- The value of the office building will tend to increase over time.
Now, let us take a look at the cons of buying, which include the fact that:
- If your business contracts or grows faster than you had expected, you may need to sell the property sooner than expected.
- You have large upfront costs, particularly because of the down payment on the mortgage. You will also need to take care of maintenance, appraisal, and other property costs.
Meanwhile, when you lease office space, the benefits include the fact that:
- It is possible to rent a prime office space, which can certainly boost the image of your company.
- You can free up working capital because you don’t need to pay for a down payment.
- You can focus on actually running your business, instead of spending some of your time taking care of the problems that come with property ownership.
On the other hand, the downsides of leasing include the fact that:
- Your monthly costs will tend to rise because of rent increases.
- You do not build up any equity in the property, since you don’t own it.
To help choose between the two options, below are information on the trends and statistics in terms of prices, supply, and demand.
Placentia Office Space for Sale – Trends and Statistics
- The average office property asking price, sale trends, in dollars per square foot for the county was $311.66, a three month decrease of 0.2%, but year-on-year increase of 11.3%. This is lower than the metro area ($317.28), but higher than the state ($226.32) area.
- The index of total dollars available for office spaces for sale in the metro area that includes Placentia is 34, which is a 6% increase over the past three months, but a 3.7% decrease year-on-year.
- The index of total number of listings of office properties for sale in the metro area that includes Placentia is 35, which is a 5.5% increase over the past three months, but an 8.4% decrease year-on-year.
- The profile view index for office properties for sale in the metro area that includes Placentia is 138, which is a 19% increase over the past three months, and a 14.5% increase year-on-year.
- The index of total square feet of available office properties for sale in the metro area that includes Placentia is 36, which is a 1.8% increase over the past three months, but a 19.5% decrease year-on-year.
Placentia Office Space for Lease – Trends and Statistics
- The average asking rent for office space for lease in Placentia expressed in dollars per square foot per year is $24.33, which is a 1.9% increase over the past three months, and a 5% increase year-on-year. This is lower than the metro ($25.41) area, but higher than the state ($23.08) area.
- The index of total number of office spaces for lease in the metro area that includes Placentia is 61, which is a 1% increase over the past three months, and a 3.1% increase year-on-year.
- The profile view index for office spaces for lease in the metro area that includes Placentia is 115, which is a 49.7% decrease over the past three months, and a 28.4% decrease year-on-year.
- The index of total square feet available for office spaces for lease in the metro area that includes Placentia is 58, which is a 3.7% decrease over the past three months, and a 12.4% decrease year-on-year.