Huntington Beach is one of Orange County’s seaside cities. According to the 2010 U.S. Census, this California city had a population of 189,992 during that year, which means it is the most popular beach city in the county, as well as the seventh in the Los Angeles-Long Beach-Anaheim area. The population is also growing, with an estimated 200,809 people living there in 2014. It also has a 9.5 mile stretch of beautiful, sandy beach and is perfect for the surfing and beach community. In fact, it is therefore called “Surf City”.
Huntington Beach Industrial Building for Sale & Lease – Should You Buy or Lease?
If you are interested in industrial buildings in Huntington Beach, to be used as an investment or for business, you have two major alternatives available to you: buying or leasing. There are pros and cons to both of these options.
Looking first at buying industrial space, there are a number of pros:
- Costs will be constant, which means there would be no surprises with regards to expenses for the property.
- You can file for really good tax deductions, including property taxes and mortgage interest.
- You can have some of your space rented out so that you can earn some extra income.
- You can build up retirement savings, as the property is likely to appreciate over time.
However, the downsides are substantial as well:
- Not having much flexibility – you will need to find a buyer for the property if you will need to move to another location or building
- Having high upfront costs – there is at least a 30% down payment based on the selling price. You will also need to shell out money for maintenance, appraisal, and other property costs.
Your other option is to lease your industrial space, which also has some benefits:
- You may rent a prime property, which is important if your public image matters.
- You can free up substantial working capital because you don’t have to pay for a down payment
- You can focus on actually running your business. There is no need to worry about property management.
However, there are some downsides as well:
- Your costs will be variable, due to regular 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, being aware of the trends and statistics in terms of prices, supply, and demand, can be very beneficial.
Huntington Beach Industrial Property for Sale – Trends and Statistics
- The selling price for industrial properties in Huntington Beach 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 industrial properties for sale in Los Angeles-Long Beach-Huntington Beach 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-Huntington Beach 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-Huntington Beach 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-Huntington Beach metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Huntington Beach Industrial Property for Lease – Trends and Statistics
- The asking rent for industrial properties for lease in Huntington Beach real estate 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 industrial spaces for lease in the Los Angeles-Long Beach-Huntington Beach 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-Huntington Beach 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-Huntington Beach area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.