A thriving part of the economy of Orange County in California, the city of Costa Mesa is home to more than 112,000 people as of 2013. Being just 34 miles away from Los Angeles, and only 8 miles to Santa Ana, Costa Mesa can draw in consumers from nearby cities, making it a prime location to start a retail business.
Buying and leasing retail property in Costa Mesa can provide very different results. Before you set your sights on a potential location, be sure to do your homework and decide which method of ownership is best for you and your business. If you see yourself staying in one spot long term, and you have the finances at your disposal to buy, it can be a good investment in this climate. Alternatively, if you’re unsure whether a venue will thrive much over the next decade, leasing can be a better option.
Costa Mesa Retail Building for Sale & Lease
Retail space is sold and leased by the square foot, which means that you can generally tell how much a building will cost by its size. Of course, square footage isn’t the only factor which defines value in commercial real estate. The age of the building, special amenities, and recent upgrades all need to be taken into consideration. Location can also play a role in the evaluation of a business. High traffic areas near shopping malls, hotels, and other local attractions will cost more to buy or lease than those on the outskirts of town, or nestled in residential zones.
Creating a checklist can help you find the best possibly choice of retail property in Costa Mesa for your business. Check out this template, and then revamp it to suit your needs:
- Size: How much space there is to perform daily business is crucial to the success of your investment. Remember to factor in storage and stock rooms, space for janitorial supplies, staff rooms, bathrooms, and a manager’s office. Parking for customers should also be considered, if you are choosing an individual lot separate from other businesses.
- Location: Do you know your target audience and where they like to spend their time? If you sell clothing for young adults, being near universities or other similar locations can be beneficial. Watch out for competitors within the vicinity; you don’t want to set yourself up for failure by opening a store too close to a similar brand.
- Buy or Lease: Buying and leasing have individual benefits for business owners, particularly in the retail world. Costa Mesa has seen a lot of growth in this sector over the past five years, which makes it a particularly good time to buy. There are also plenty of rental options available in the city, which takes off some of the pressure from having to pay a mortgage.
Costa Mesa Retail Property for Sale
If you’re in it for the long haul, you have a brand or business that will make a difference in Costa Mesa, and you know where your target audience likes to hang out, buying retail space can be a huge advantage in the retail industry. Owning your own business space means having the freedom to perform renovations and upgrades. It also cuts back on the worry of being misplaced in the future.
Costa Mesa is a tourist hub, which means that you will have plenty of out of towners coming to sample your goods and services. Tourists base much of their experience on local recommendations, online reviews, and tour guides. If your business is always in the same place, its easier for tourists to find, rate, and share with others. If you’re leasing in different locations every few years, you could miss out on new customers.
Of course, commercial real estate comes with its risks. There’s always the notion that a location could change over time, making it difficult to bring in business. When this happens, selling is often the only option, and it could mean taking a loss on your initial investment. Working with a commercial realtor can take some of the risk out of buying, but there’s never a 100% guarantee in real estate.
Costa Mesa Retail Property for Lease
Leasing reduces a lot of the pressure, but it also means you have less freedom in decision making about the property. Renting instead of buying sometimes comes with benefits such as maintenance and upkeep being covered by the property owner. When you lease in Costa Mesa, prices are based on square footage per year, and might be flexible based on your contract term.
Risks involved in leasing retail property in Costa Mesa include being forced to find a new location upon the completion of the lease contract, or building a reputation for yourself and being unable to keep the address where your customers know you are located. There is also a risk that the company you rent from could go bankrupt, leaving you with no location, and a sudden need to move shop. Again, working with a professional can help you assess these risks before settling into a particular location.