Fullerton is a city located in the northern part of Orange County, CA. According to the 2010 U.S. Census, it was home to some 135,161 individuals at that time. The city was founded in 1887, and the land was then secured for the Atchinson, Topeka and Santa Fe Railway. Originally, the city was highly agricultural, focusing on citrus crops such as the Valencia orange. Other important industries were manufacturing, transportation, and petroleum extraction. Today, Fullerton is very much a student city, being home to Fullerton College and the Fullerton campus of the California State University. Up to the 1990s, there was also strong industry in the city, including paper product manufacturers, canneries, and aerospace contractors. But what attracts visitors to Fullerton more than anything else is that it is the birthplace of Leo Fender, who is credited with inventing the electric guitar.
Fullerton Warehouse Building for Sale & Lease – Should You Buy or Lease?
If you are interested in warehouse space in Fullerton, whether as an investment or for your business out, you have two major choices: buying or leasing. Let us examine the advantages and disadvantages of each.
Looking first at buying warehouse space, the advantages include:
- That your monthly expenses are fixed, which is due to the fact that monthly amortizations are generally constant. Thus, there are no surprises when it comes to this particular cost.
- That you can claim substantial tax deductions, including property taxes and mortgage interest.
- That you can rent out some of the extra warehouse space for additional income that could help with your business.
- That you can build up some kind of savings as a result of the property increasing in value over time.
On the other hand, the disadvantages include:
- Not having much flexibility. This is because relocating would be difficult because it is not easy to sell the property. It often takes months to sell it even during a sellers’ market.
- Having to pay at least a 30% down payment on the mortgage. This is a large amount of money, which could be helpful in funding other components of your business.
- You will also need to take care of maintenance, appraisal, and other property costs.
With regards to leasing warehouse space instead, the benefits include the fact that:
- You have the opportunity to rent a prime property, which is important for your public image, especially if you have a business.
- You have more working capital because you don’t have to take care of a down payment.
- You can focus on actually running your business, because you are free of the stresses that come with property ownership.
With regards to the disadvantages of leasing, these include the fact that:
- Your monthly costs will surely go up. This because rent tends to increase.
- You do not get to benefit from the build up in equity.
To help choose between the two options, being aware of the trends and statistics in terms of prices, supply, and demand, can be beneficial.
Fullerton Warehouse Property for Sale – Trends and Statistics
- The asking price for warehouse properties in Fullerton in dollars per square foot is $132.74, which has been unchanged both over the past quarter and the past year. This is lower than the metro ($195.29), state ($142.69) area, and county ($222.13) area.
- The index of total available warehouse properties for sale in Los Angeles-Long Beach-Fullerton 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-Fullerton 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-Fullerton 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-Fullerton metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Fullerton Warehouse Property for Lease – Trends and Statistics
- The asking rent for warehouse properties for lease in Fullerton in dollars per square foot per year is $12.93. This represents a 1.3% increase over the past three months, and an 10.1% increase year on year. This is higher than the state ($10.31) area, but lower than the metro ($11.75), and county ($12.93) area.
- The index of total number of warehouse spaces for lease in the Los Angeles-Long Beach-Fullerton 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-Fullerton 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-Fullerton area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.