City of Orange is one of the major cities in Orange County, California. It is found just north of Santa Ana, which is the county seat. A unique and interesting feature of this city is that the Old Town District has many homes and properties that were built before 1920. In most of the cities of the county, these properties have been demolished in the 1960s, but Orange had chosen to preserve these properties. According to the 2014 U.S. Census, the city had 139,812 residents.
Evidently, this is a city that gives importance to education, health and culture. This can be seen in the city’s largest employers, which are the city government, the hospitals, the universities, and the zoo. Also present in the city is a market for antique collectors with the many antique shops attracting thousands of visitors every year.
City of Orange 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 out of, you have two major choices and these are buying or leasing the property. Of course, there are both pros and cons for both alternatives. Let’s take a look.
When buying retail space, the pros include the fact:
- That your costs are constant, at least with regards to regular mortgage payments
- That you can get significant tax deductions, including property taxes and mortgage interest.
- That you can rent out some of your space, assuming that it is large enough, for additional cash inflow
- That you can build up equity, which can be substantial after some time
On the other hand, the cons of purchasing a retail building include the fact:
- That you don’t have much flexibility. If your business grows too fast or if it suddenly contracts, the retail space may no longer be appropriate, forcing you to sell the property sooner than planned.
- That you have substantial expenses upfront. You will need to pay at least a 30% down payment of the selling price. You will also have to handle maintenance, appraisal, and other property costs.
Meanwhile, if you lease retail space, there are a number of benefits, including the fact that:
- You have the opportunity to rent a prime property, which could do good for your public image
- You have more working capital because you don’t have to pay for a down payment
- You are not saddled with the usual concerns that come with property ownership. Thus, you can focus on running your business.
However, the disadvantages of leasing a retail property include the fact that:
- Your costs may rise unexpectedly due to rent increases.
- You do not accumulate any equity in the property.
Meanwhile, being aware of the trends and statistics in terms of prices, supply, and demand in retail properties, can be very beneficial in helping you make a choice.
City of Orange Retail Property for Sale – Trends and Statistics
- The asking prices for retail properties in Orange 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-Orange 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-Orange 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 property for sale in the Los Angeles-Long Beach-Orange 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-Orange metro area is 34, which is a 3.2% increase over the past three months, but an 8.5% decrease year on year.
City of Orange Retail Property for Lease – Trends and Statistics
- The asking rent for retail properties for lease in Orange in dollars per square foot per year is $24.21. This represents a 0.9% decrease over the past three months, but a 0.4% increase year on year. This is higher than the state ($20.88) area, but lower than the metro ($24.88) area.
- The index of total number of retail spaces for lease in the Los Angeles-Long Beach-Orange 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-Orange 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-Orange area is 69, which is a 5.3% increase over the past three months, and a 3.3% increase year on year.