Tustin is found in Orange County, within the Los Angeles metropolitan area in California. In 2010, there were 74,540 residents, making it a relatively small city. It is right next to Santa Ana, the county seat. In 2009, Forbes listed Tustin as one of the top 25 towns in America to live well in, because it ranks in the top 10% for sole proprietors and startups per capita, as well as having one of Southern California’s shortest average commutes. Also, many people in Tustin work for the education system, the health care system, and manufacturing companies.
Unfortunately, the median household income in 2010 in Tustin was just $74,011 and 12.2% of the population were living below the poverty line. The household income had actually improved because in 2000 it was just $55,985, but then only 8.5% of the population were below the poverty line. It is believed that this is in part due to the high cost of living due in city as it is a part of Orange County, an affluent area.
Tustin Industrial Building for Sale & Lease – Should You Buy or Lease?
If you are interested in industrial space in Tustin, whether as an investment or to run a business out of, you can either buy or lease.
Looking first at buying industrial space, the pros include the fact that:
- Your monthly costs are fixed because the monthly amortization won’t change during 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 industrial space, providing you with some extra income.
- You will benefit from the tendency of the value of the property to rise over time.
The cons of buying industrial space include the fact that:
- You don’t have much flexibility. If your business contracts or grows too fast and you need to relocate you will need to sell the property first.
- You have high upfront costs, not in the least because of a 30% down payment on the mortgage. You will also have maintenance, appraisal, and other property costs to pay.
Leasing industrial space has a number of advantages, including the fact that:
- You can lease a prime industrial property, which is important if you want to enhance your public image.
- You have more working capital because you don’t have to pay for a deposit.
- You can focus on actually running your business, because you are not bothered by the concerns of property ownership.
With regards to the downsides of leasing industrial space, these include the fact that:
- Your monthly costs will tend to increase as rent increases.
- You do not build up any equity in the property, since you don’t own it.
To help choose between the two, being aware of the trends and statistics in terms of prices, supply, and demand, may help.
Tustin Industrial Property for Sale – Trends and Statistics
- The asking prices for industrial properties in Tustin 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) area and state ($142.69) area.
- The index of total dollars available for industrial properties for sale in Los Angeles-Long Beach-Tustin 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 industrial properties available in Los Angeles-Long Beach-Tustin 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 industrial property for sale in the Los Angeles-Long Beach-Tustin 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 industrial space for sale in the Los Angeles-Long Beach-Tustin metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Tustin Industrial Property for Lease – Trends and Statistics
- The asking rent for industrial properties for lease in Tustin 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 industrial spaces for lease in the Los Angeles-Long Beach-Tustin 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 industrial properties for lease in the Los Angeles-Long Beach-Tustin 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 industrial space available for lease in the Los Angeles-Long Beach-Tustin area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.