Huntington Beach is one of Orange County, CA’s seaside cities. According to the 2010 U.S. Census, it had a population of 189,992 at that time, 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 affectionately called “Surf City”.
Huntington Beach Retail Building for Sale & Lease – Should You Buy or Lease?
If you are interested in retail space, be that as an investment or for running a business, you have two broad choices: buying or leasing. There are pros and cons to both of these options.
Looking first at buying retail space, the pros include:
- That your costs are fixed, which means your business expenses when it comes to the retail property are practically constant.
- That you can get some really good tax deductions, including property taxes and mortgage interest.
- That you can rent out some of your space for increased cash flow, especially during those times when your business needs more cash.
- That you can accumulate funds, as the property is likely to appreciate over time.
However, the cons are substantial as well and include:
- Not having much flexibility, which means that you will need to sell the property if there are changes in your business that require you to move to another place
- Having large upfront costs – at least a 30% down payment is usually required. You will also have maintenance, appraisal, and other property costs to pay.
Your other option is to lease your retail space, which also has clear benefits, including the fact that:
- You can get a prime property, which is important if your public image matters.
- You can free up working capital because you don’t have to pay for a down payment.
- You can focus on actually running your business, because property management is not your concern.
However, there are some downsides as well, including the fact that:
- Your costs will be variable, primarily 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 beneficial.
Huntington Beach Retail Property for Sale – Trends and Statistics
- The asking price for retail properties in Huntington Beach in dollars per square foot is $408.88, which has remained the same over the past three months, and represents a 14.5% increase year on year. This is higher than the metro ($282.45) and state ($214.98) area.
- The index of total available retail properties for sale in Los Angeles-Long Beach-Huntington Beach is 45, which represents a 9.7% increase over the past three months and 7.1% increase year on year.
- The index of total number of listings of retail properties available in Los Angeles-Long Beach-Huntington Beach is 35, which is a 2.6% decrease over the past three months, as well as a 10.6% decrease year on year.
- The profile view index retail for sale in the Los Angeles-Long Beach-Huntington Beach metro area is 123, which is a 10.6% increase over the past three months, and a 14.7% increase year on year.
- The index of total square feet of available retail space for sale in the Los Angeles-Long Beach-Huntington Beach metro area is 34, which is a 3.2% increase over the past three months, but an 8.5% decrease year on year.
Huntington Beach Retail Property for Lease – Trends and Statistics
- The asking rent for retail properties for lease in Huntington Beach in dollars per square foot per year is $25.80. This represents a 2.2% decrease over the past three months, but a 1.7% increase year on year. This is higher than the state ($20.88), metro ($24.88), and county ($24.21) area.
- The index of total number of retail spaces for lease in the Los Angeles-Long Beach-Huntington Beach area is 71, which represents a 2.4% increase over the past three months, and a 1.4% increase year on year.
- The profile view index for retail properties for lease in the Los Angeles-Long Beach-Huntington Beach area is 91, which is a 49.3% decrease over the past three months, and a 47.5% decrease year on year.
- The index of total square feet of retail space available for lease in the Los Angeles-Long Beach-Huntington Beach area is 69, which is a 5.3% increase over the past three months, and a 3.3% increase year on year.