City of Orange is found within California’s Orange County. It is just outside of Santa Ana, the county seat. It is a unique part of Orange County because unlike in other cities where old architecture were demolished in the 1960s, the city has kept such buildings intact. As a result, many of the properties, particularly those in the Old Town District, are pre-1920s. Unsurprisingly, there is a strong focus on antique stores in this part of the city as well. Additionally, this is a unique feature that helps to attract tourism, as well as visitors from other parts of the county. According to the 2014 U.S. Census, Orange had a population of 139,812 at that time. The biggest employers in Orange include the health care system, the education system, and the government.
Orange Warehouse Building for Sale & Lease – Should You Buy or Lease?
If you are interested in warehouse space, as an investment or for use in your business, you have two broad choices that are available: buying or leasing. Let us examine the advantages and disadvantages of both options.
Buying warehouse space has a number of benefits:
- Your monthly expenses are constant because the monthly amortization is fixed.
- You can have really good tax deductions, including property taxes and mortgage interest.
- You have the option of renting out some of the warehouse space to augment cash inflow when needed.
- You will build up substantial funds, as the property is likely to appreciate in value over time.
Meanwile, the disadvantages include:
- Not having much flexibility because real estate is not a liquid asset. In the event that you need to relocate for whatever reason, this will be hampered because it requires several months to complete a sale.
- Having high upfront costs. This is because you will need to put down at least 30% of the selling price as down payment on the mortgage.
- You will also need to pay for maintenance, appraisal, and other property expenses.
The advantages of just leasing warehouse space include the fact that:
- You have the chance of renting a prime property, which is important for your public image.
- You can free up substantial working capital because you don’t have to pay for a down payment.
- You can focus on actually running your business, rather than having to manage the various issues that come with property ownership.
The downsides of leasing include the fact that:
- Your monthly costs will tend to go up as the rent increases.
- You do not build up any equity in the property, since you don’t own the property.
To help choose between buying or leasing, being aware of the trends and statistics in terms of prices, supply, and demand, can be very beneficial.
City of Orange Warehouse Property for Sale – Trends and Statistics
- The asking price for warehouse properties in Orange in dollars per square foot is $222.13, which is a 2.7% rise 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 warehouse properties for sale in Los Angeles-Long Beach-Orange 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-Orange 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 warehouse property for sale in the Los Angeles-Long Beach-Orange 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-Orange metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
City of Orange Warehouse Property for Lease – Trends and Statistics
- The asking rent for warehouse properties for lease in Fullerton 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, 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-Orange 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-Orange 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-Orange area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.