Buena Park is situated in the northwest part of California’s Orange County. It can be found to the northwest of the county seat, which is Santa Ana. This is a relatively small city because it had only 80,530 residents in 2010, according to the U.S. Census in that year. It is actually found within the Los Angeles metropolitan area although it is part of Orange County. Buena Park is a popular tourist attraction, particularly because it is home to Knott’s Berry Farm, as well as a number of other interesting sites. Knott’s Berry Farm is also the city’s largest employer, with some 5,071 people working there. The other top employers of Buena Park include Prologis, Leach, the Access Business Group, PepsiCo, J.C. Penney, ADP, Yamaha, the RIA Financial Services, and the City of Buena Park.
Buena Park Warehouse Building for Sale & Lease – Should You Buy or Lease?
If you are interested in getting a warehouse building, whether for use in your business or just as an investment, you have two choice: buy or lease warehouse space. Thus, let us take a look at the pros and cons of these alternatives.
Buying a warehouse building has various benefit, such as:
- Monthly costs are basically constant because mortgage amortizations are usually don’t change.
- You can file for a number of tax deductions, including property taxes and mortgage interest.
- If you need more cash on a monthly basis, you can rent out some of the warehouse space.
- The warehouse building tends to increase in value over time, which would be advantageous to you when you finally decide to sell it.
Meanwhile, the various disadvantages of purchasing a warehouse building include:
- It is not easy to relocate in the event that you decide that your business would fare better in another location. Selling the property would take several months to complete.
- You need to have a fairly large amount of funds at the start because a down payment is often required. This is usually around 30 percent of the total contract price.
On the other, if you just lease the warehouse building, you will enjoy some benefits, such as:
- There is a chance to lease a prime warehouse property, which could do wonders for your reputation.
- You have more working capital for your business because you don’t have to make a down payment.
- You are able to avoid the usual stresses of property ownership.
But there are downsides when you lease a warehouse space, such as the fact that:
- Your monthly costs will gradually go up because of the possible rent increases.
- You do not build up any equity in the property, since you don’t own it.
Let us take a look at the trends and statistics in terms of prices, supply, and demand for warehouse buildings in Buena Park.
Buena Park Warehouse Property for Sale – Trends and Statistics
- The asking price for warehouse properties in Buena Park 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 dollar available warehouse properties for sale in Los Angeles-Long Beach-Buena Park 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-Buena Park 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 warehouse property for sale in the Los Angeles-Long Beach-Buena Park 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-Buena Park metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Buena Park Warehouse Property for Lease – Trends and Statistics
- The asking rent for warehouse properties for lease in Buena Park 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) 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-Buena Park 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-Buena Park 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-Buena Park area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.