Stanton is found in the west of Orange County, CA. According to the 2010 census, it had a population of 38,186, which represents a significant rise since the 2000 census. It is also interesting to note that the percentage of people who live below the poverty line dropped from 18% to 16%, which is good news for the city.
Stanton was incorporated in 1956 and its government form is that of a Council-Manager. Through this, a number of municipal services are offered and developed. The city is bordered by Garden Grove, Anaheim, and Cypress. A lot of people who live in Stanton work in Anaheim, commuting on a daily basis. Top employers for Stanton are Sam’s Club, The Home Depot, All Metals Processing, Adventure City, Custom Pipe & Coupling, Food 4 Less, Acapulco Restaurant, Primus, Inc., Cameron Welding Supply, Orco Block, the City of Stanton, and Smart & Final. What this also shows is that Stanton is very much an industrial city.
Stanton Commercial Buildings for Sale & Lease
If you want to become part of the growing economy of Stanton, there are several options for you. If you want to be a property investor, for instance, you may want to consider investing in commercial real estate (CRE). You can do the same thing if you want to run your own business, although your other option here is to lease a property instead of buying it. It can be hard to determine which of the two, buying or leasing, is the better option, however. This is because both options have advantages and disadvantages associated with them. According to most financial experts, it is more financially viable to purchase if a business wants to remain in the property for at least seven years. However, not everybody is actually able to purchase property, even if they do want to remain there for a long period of time.
Comparing which option is more financially viable when it comes to commercial buildings for sale & lease is incredibly complex. It means you have to look at more than just the monthly price of the lease or the monthly price of the mortgage. Both of these options have different tax advantages for starters, and they also have different associated costs. A lease requires a deposit, and a purchase requires a down payment, so that is another thing to consider, including the limitations associated with the contract that you get. Hence, you have to spend a considerable amount of time comparing all aspects of both options before coming to a decision.
Stanton Commercial Property for Sale
One place to start with when comparing your options, whether you want to run a business or make an investment, is with CRE trends. For Stanton:
- Multifamily properties in the county usually cost around $314,841.90, which is a 0.7% increase during the last three months, and a 10.5% rise in one year.
- Office properties in the county usually cost around $311.66 per square foot. This equates to a quarterly decline of 0.2%, although this is a 11.3% increase in one year.
- Industrial properties in the county usually cost around $222.13 per square foot, which equates to a quarterly rise of 2.7% and a 10.9% rise in one year.
- Retail properties usually cost around $408.88 per square foot, which has been stagnant over the past quarter. However, this represents a 14.5% increase in one year.
Stanton Commercial Property for Lease
In many cases, leasing is the only financially viable option. CRE is generally quite expensive, far more so than residential properties, and a down payment of 30% is required in order to get a mortgage. This is money that most small businesses don’t have and even if they do, it could be put to better use, particularly in growing the business.
Get the Services of a Broker
When it is clear to you that a lease is the only option for you, there are quite a few considerations to make. One of the first things that you have to do, therefore, is find a broker. Brokers are generally paid for by the property owner. Two types are available to you. First, there is the leasing agent, who generally works directly for the landlord. Second, there is the tenant broker, who generally works directly for you. You may think that the tenant broker is instantly the better option, but this is not always the case. If you sign with a tenant broker, you will generally also have to sign a representation agreement, which means you cannot work with any other broker. If you do that, then there is a chance that you will miss out on much better properties instead.
Learn to Negotiate
Another important thing to consider is that you need to learn to negotiate. Landlord are likely to hope that you don’t know that you can negotiate the terms of the lease agreement, and they will skew it heavily in their favor. This is why, besides a broker, you also need to work together with a lawyer and an accountant. As a team, they can negotiate a number of points on the lease contract to ensure it is more favorable for you. Some of the elements of the contract that you might want to look into are:
- The length and extent of your personal guarantee
- How much you have to pay every month for the lease, and what is it based on
- The type of lease that is most beneficial to you (percentage lease, net lease, triple net lease, or gross lease)
- The duration of your lease and what happens when it comes to an end
- The possible rent increases, what they are based on, and what is the cap
- Who would be responsible for maintenance
- To what extent you are able to change the inside of the building and who will take care of the renovation costs
- Whether you can signpost your store on the outside of the building
- Whether you can sublease the space and, if so, under what conditions
- What types of exit clauses are in place should you want to leave early
- Your right to transfer your lease if you were to sell your business to a third party
- Specific clauses such as exclusive use or co-tenancy
- The amount of security deposit required
What this demonstrates above all else is that lease contracts are highly complex pieces of documentation, and that you need someone with a professional understanding of them to help you.
Buying a Commercial Property for Sale
If, however, you were to purchase CRE, none of the above will be applicable to you. The property will be yours to do with as you please, and you will only be limited by building codes, local ordinances, and, if applicable, whether your building is historic. You can sell it if you feel you will make a profit, or you can lease it out yourself, either in full or in part. However, the reality is that not everybody is able to purchase CRE either.
CRE is a very popular type of investment. This is due to the fact that, regardless of what the overall economy does, there is always a need for commerce. Even if there is a decline in prices due to an economic downturn, prices generally pick up again very quickly. Added to that is the fact that, if you were to go out of business yourself, you could lease the property out to somebody else, thereby continuing to be able to earn an income.
Problems with Purchasing CRE
There are downsides to purchasing a commercial property as well. One of the problems is that you do have a limitation when it comes to buying CRE, and that is because of the fact that they are subject to zoning. This means that you can only use the property for a specific type of industry, such as retail, manufacturing, and so on. The bigger problem, however, is the issue of the 30% down payment that is required in order to obtain a mortgage. This is money that most people do not have or, if they do, they would rather spend it on growing the company. This is why you may want to consider the option of a commercial real estate investment trust (REIT) instead. By doing this, you don’t fully own any piece of property, but that also means that you don’t have the difficulties of being a landlord.
When you are considering getting involved in commercial real estate, be that through a lease or through purchase, there are many things to think about. You have to make sure that you understand all the different options out there, and what their advantages and disadvantages are. Doing this means that you are more likely to find the option that is most closely aligned to your personal needs and wishes, and also to your capabilities. Stanton has a growing economy, and this means that it is a good place to become involved in commerce, be that by buying to become a landlord, buying for your business, or leasing.