Anaheim is found in Orange County, CA, and 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 the 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 built on its extensive industries, including tourism. In 1955, the Disneyland Resort opened, which made the city world famous.
Anaheim Retail Building for Sale & Lease – Should You Buy or Lease?
If you are interested in retail space, be that as an investment or to run a business from, you have two broad choices available to you: buying or leasing. There are advantages and disadvantages for both of these options.
Looking first at buying retail space, the pros include:
- That your costs are fixed, which means your business expenses are predictable
- That you can get some substantial tax deductions, including property taxes and mortgage interest
- That you can rent some of your space out so that you can obtain additional income
- That you can accumulate retirement savings, as the property is likely to rise in value over time
However, the cons are significant as well and include:
- Not having much flexibility, which means that if your business declines 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 consider
Your other option is to lease your retail space, which also has advantages, including:
- You can get a prime property, which is important if your reputation matters.
- You have more working capital because you don’t have to pay for a deposit.
- You can focus on actually running your business, rather than on the stresses of property ownership.
However, there are some downsides as well, including:
- The fact that your costs will be variable because of 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.
Anaheim Retail Property for Sale – Trends and Statistics
- The asking prices for retail properties in Anaheim 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-Anaheim 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-Anaheim 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-Anaheim 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-Anaheim metro area is 34, which is a 3.2% increase over the past three months, but an 8.5% decrease year on year.
Anaheim Retail Property for Lease – Trends and Statistics
- The asking price for rental of retail properties for lease in Anaheim in dollars per square feet per year is $21.82. This represents a 1.4% increase over the past three months, but a 0.8% decrease year on year. This is higher than the state ($20.88) as a whole, but lower than the metro ($24.88), and county ($24.21) area.
- The index of total number of retail spaces for lease in the Los Angeles-Long Beach-Anaheim 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-Anaheim 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-Anaheim area is 69, which is a 5.3% increase over the past three months, and a 3.3% increase year on year.