Tustin is found in California’s Orange County, within the Los Angeles metropolitan area. According to the 2010 U.S. Census, it had a population of 74,540 at that time, making it a relatively small city. It is right next to Santa Ana, the county seat. Interestingly, the Tustin Foothills are not part of Tustin itself. In 2009, Forbes chose 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. Aside from working in startups and sole proprietorships, people in Tustin commonly work for the education system, the health care system, and manufacturing companies.
Unfortunately, the median household income in 2010 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. However, In 2000, only 8.5% of the population (5.8% of families) were classed as living below the poverty line. Because of that, many residents may not agree that it is a good place to live well in. This is partly due to the high cost of living, being located in Orange County, which is a very affluent area.
Tustin Office Buildings for Sale & Lease – Should You Buy or Lease?
If you are interested in office space in Tustin, whether an investment or for running a business from, you have two options: buying or leasing. There are pros and cons to both of these options, so let’s take a look.
Buying office space has a number of advantages including the fact that:
- Your monthly costs are fixed because the amortization will not change during the duration of the mortgage.
- You can file for tax deductions, including property taxes and mortgage interests.
- You can rent out some of the office space out for additional income.
- The value of the office building will rise over time.
Meanwhile, the disadvantages of buying office space include the fact that:
- It is more difficult to move to another place if your business grows or contracts much faster than you had expected. You will need to sell the property first.
- You have high initial costs, not in the least a 30% down payment on the mortgage. You will also have to pay for maintenance, appraisal, and other property costs.
If you decide to lease office space, the benefits include the fact that:
- You can lease prime office space, which can help enhance your reputation.
- You have more working capital because you don’t have to pay for a down payment.
- You can concentrate on your business. You avoid the problems that come with property ownership.
The disadvantages of leasing office space include the fact that:
- Your monthly costs will tend to increase as the rent increases.
- You do not build up any equity in the property, since you don’t own it.
To help choose between the two, you need to be aware of the trends and statistics in terms of prices, supply, and demand.
Tustin 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 Tustin 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 Tustin 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 Tustin 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 Tustin is 36, which is a 1.8% increase over the past three months, but a 19.5% decrease year-on-year.
Tustin Office Space for Lease – Trends and Statistics
- The average asking rent for office space for lease in Tustin expressed in dollar per square foot per year is $20.66, which is a 2.1% increase over the past three months, and a 6.5% increase year-on-year. This is lower than the metro ($25.41) area, state ($23.08) area, and county ($24.33) area.
- The index of total number of office spaces for lease in the metro area that includes Tustin 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 Tustin 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 Tustin is 58, which is a 3.7% decrease over the past three months, and a 12.4% decrease year-on-year.