Newport Beach is located along the coast of Orange County, CA. In 2010, it had a population of some 85,287 people. It is famous for Newport Harbor, which is well known among recreational boat enthusiasts. The city of Newport Beach has a very affluent community as evidenced by both property values and median family incomes ranking among the highest in the country. According to the Daily Pilot, a Costa Mesa newspaper that covers all of the Newport-Mesa area, at least 25% of households in Newport Beach earn $200,000 annually and property values have a median value of $1 million or more. This ranks the house prices in the city as 8th in the entire country, according to a survey in 2009. On a side note, Newport Beach is the most Republican city in the state.
Newport Beach Industrial Building for Sale & Lease – Should You Buy or Lease?
If you are interested in getting an industrial building, whether as an investment or for running your business out of, you have two major options available to you: buying or leasing. There are pros and cons to both of these options.
Buying industrial space has several benefits:
- Your costs are fixed, at least when it comes to the monthly amortizations.
- You can file for a number of tax deductions, including property taxes and mortgage interest.
- You can rent some of your industrial space out so that you can earn an extra income.
- You can build up funds for the future, as the value of industrial property tends to increase over time.
But let us also take a look at the disadvantages:
- Not having much flexibility. Remember that it is not easy to convert the industrial building into cash. It usually takes several months or even a year to complete its sale. This could be a hindrance when you need to move to another city.
- Need for a relatively large capital at the start, particularly because there is a down payment, which is often about 30 percent of the price.
- You will also have maintenance, appraisal, and other property costs to pay.
If you lease industrial space, there are a number of advantages:
- You can get a prime industrial property, which will boost your reputation.
- You can free up working capital because you don’t have to pay for a large down payment.
- You don’t have to be troubled by the usual stresses of property ownership.
Of course, there are some cons to leasing an industrial building:
- Your monthly expenses will tend to go up, mainly because of rent increases, depending on the lease contract.
- 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 for industrial buildings in Newport Beach is advisable.
Newport Beach Industrial Property for Sale – Trends and Statistics
- The asking prices for industrial properties in Newport Beach in in dollars per square foot is $222.13, which is a 2.7% over the past three months, and a 10.9% increase year on year. This is higher than the metro ($195.29) and state ($142.69) area.
- The index of total available industrial properties for sale in Los Angeles-Long Beach-Newport 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-Newport 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 of industrial property for sale in the Los Angeles-Long Beach-Newport 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-Newport Beach metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Newport Beach Industrial Property for Lease – Trends and Statistics
- The asking rent for industrial properties for lease in Newport Beach 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, and the metro ($11.75) area.
- The index of total number of industrial spaces for lease in the Los Angeles-Long Beach-Newport 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-Newport 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 foot of industrial space available for lease in the Los Angeles-Long Beach-Newport Beach area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.