Costa Mesa is a city located in California’s Orange County. According to the U.S. Census, it had 109,960 residents in 2010. When the city was incorporated in 1953, it was just a small, semi-rural farming community. It has now become a suburban edge city with an economy that is supported mainly by light manufacturing, retail and commerce. A major commercial hub in the city is the South Coast Plaza, which is a gigantic shopping center with about 322 stores, making it one of the biggest in terms of sales volume in the country. In fact, this shopping center has an estimated revenue of $1 billion per year. The southwestern part of the city has various manufacturing plants, particularly those that are in the plastics, pharmaceuticals, and electronics industries. The city is also home to the headquarters of numerous firms, including communications and media companies.
Costa Mesa Industrial Building for Sale & Lease – Should You Buy or Lease?
Those who need an industrial building, whether as an investment or for running a business from, can either buy or lease the property.
There are various advantages of buying industrial space:
- Monthly expenses are fixed, at least when it comes to the amortizations.
- Several tax deductions are allowed, including property taxes and mortgage interest.
- If there is some extra space, this can be leased to other businesses.
- The value of the industrial building will tend to go up as time goes by, which means that you are in fact accumulating funds for the future.
Meanwhile, there also some disadvantages:
- Industrial buildings are difficult to dispose of if there is a need to relocate to some other city. This is because it needs several complete its sale.
- Mortgages require usually around 30 percent of the selling price as down payment. This could put a severe strain on funds, particularly for startup businesses.
On the other hand, leasing industrial space, has a number of benefits:
- You have the opportunity to lease a prime property, which is important if your public image matters.
- You can free up working capital because you don’t have to pay for a down payment, which is about 30 percent of the selling price.
- You can focus on actually running your business, instead of needing to handle the stresses of property ownership.
Leasing an industrial building also has some disadvantages:
- You may have to contend with rent increases, depending on the provisions of the lease contract.
- You do accumulate any equity in the property.
Examining the trends and statistics in terms of prices, supply, and demand for industrial buildings in Costa Mesa can help in making the decision.
Costa Mesa Industrial Property for Sale – Trends and Statistics
- The asking price for industrial properties in Costa Mesa 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 available industrial properties for sale in Los Angeles-Long Beach-Costa Mesa 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-Costa Mesa is 26, which is a 7.7% increase over the past three months, and a 7.2% increase year on year.
- The profile view index of industrial property for sale in the Los Angeles-Long Beach-Costa Mesa 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-Costa Mesa metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Costa Mesa Industrial Property for Lease – Trends and Statistics
- The asking rent for industrial properties for lease in Costa Mesa 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, and the metro ($11.75) area.
- The index of total number of industrial spaces for lease in the Los Angeles-Long Beach-Costa Mesa 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-Costa Mesa 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-Costa Mesa area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.