Anaheim is found in Orange County, California. The 2010 U.S. Census reported a 336,265 population, which means it is Orange County’s most populous city, and the 10th most populous in the state. It is also Orange County’s second largest city after Irvine in terms of land area, and it is famous for its convention center, sports teams, and theme parks. Founded in 1857 by 50 German families, it was incorporated in 1876. Since then, the city has continued to grow based on its extensive industry, as well as tourism. In 1955, the Disneyland Resort opened, which catapulted the city to global fame.
Anaheim Industrial Building for Sale & Lease – Should You Buy or Lease?
If you are interested in industrial space, be that as an investment or to run a business out of, you have two broad alternatives available to you: buying or leasing. There are pros and cons for both choices.
Looking first at buying industrial space, the pros include:
- That your costs are fixed, which means you are clear with regards to your business expenses
- That you can get substantial tax deductions, including property taxes and mortgage interest
- That you can rent some of your space out so that you can augment your cash flow.
- That you can build up retirement savings, as the property is likely to increase in value over time.
However, the cons are substantial as well and include:
- Not having much flexibility, which means that if your business contracts or grows, you may have to sell the property sooner than expected.
- Having high upfront costs, not in the least a 30% down payment on the mortgage. You will also have maintenance, appraisal, and other property costs to take care of.
Your other option is to lease your industrial space, which also has clear benefits, including:
- You can get a prime property, which is important if your public image matters.
- You can free up some working capital because you don’t have to pay for a down payment, which is substantial.
- You can focus on actually running your business, rather than taking time to take care of property ownership.
However, there are some downsides as well, including:
- The fact that your costs will be variable, with regular rent increases
- The fact that you do not build up any equity in the property, since you don’t own it
To help choose between the two alternatives, being aware of the trends and statistics in terms of prices, supply, and demand, can be very beneficial.
Anaheim Industrial Property for Sale – Trends and Statistics
- The asking prices for industrial properties in Anaheim in dollars per square foot is $189.98, which is a 4.4% increase over the past three months, and a 24.6% increase year on year. This is higher than the state (142.69) area, but lower than the metro ($195.29) and county ($222.13) areas.
- The index of total available industrial properties for sale in Los Angeles-Long Beach-Anaheim 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-Anaheim 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-Anaheim 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-Anaheim metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Anaheim Industrial Property for Lease – Trends and Statistics
- The asking rent for industrial properties for lease in Anaheim in dollars per square feet per year is $11.91. This represents a 2.6% decrease over the past three months, but a 12.3% increase year on year. This is higher than the state ($10.31) and the metro ($11.75) area, but lower than the county ($12.93) area.
- The index of total number of industrial spaces for lease in the Los Angeles-Long Beach-Anaheim 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-Anaheim 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-Anaheim area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.