The city of Huntington Beach is one of the seaside cities in Orange County, California. According to the 2010 U.S. Census, it had a population of 189,992, 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, as it had 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 known as “Surf City”.
Huntington Beach Warehouse Building for Sale & Lease – Should You Buy or Lease?
If you are interested in warehouse space, be that as an investment or to run a business out of, you have two broad options available: buying or leasing. There are pros and cons to both of these options.
Looking first at buying warehouse space, the pros include:
- That your costs are fixed, which means you have clarity with regards to your business expenses for warehouse space.
- That you can get really good tax deductions, including property taxes and mortgage interest.
- That you can rent out some of your space out so that you can earn some extra income.
- That you can build up retirement savings, as the property is likely to ris in value over time.
However, the cons are substantial as well:
- Not having much flexibility – since you own the property, you may need to find a buyer if you have to move to another location
- Having high upfront costs – at least 30% of the selling price is required as down payment. You will also have maintenance, appraisal, and other property costs to pay.
Your other option is to lease your warehouse space, which also has some advantages:
- 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, rather than on the stresses of property ownership.
However, there are some downsides as well:
- Your costs will be variable (usually rising gradually) 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 Warehouse Property for Sale – Trends and Statistics
- The asking price for warehouse 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 warehouse 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 warehouse 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 warehouse 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 warehouse 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 Warehouse Property for Lease – Trends and Statistics
- The asking rent for warehouse properties for lease in Huntington Beach 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 warehouse 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 warehouse 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 warehouse 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.