Orange County, CA, is home to the city of Costa Mesa, where some 109,960 people lived according to the 2010 U.S. Census. It was incorporated in 1953, when it was a semi-rural community, home to just 16,840 people at that time. Today, it is an edge, suburban city, with a strong economy based on light manufacturing, commerce, and retail. It is perhaps best known for its South Coast Plaza, which is a huge, and spectacularly beautiful shopping center. It is one of this country’s strongest sellers, with the highest volume. However, manufacturing efforts are equally important, with most industrial properties, including warehouses, being in the southwestern quarter of the city. Additionally, the city is home to two libraries, 26 public schools, a municipal golf course, and 26 parks.
Costa Mesa Warehouse Building for Sale & Lease – Should You Buy or Lease?
If you are interested in warehouse space, to be used as an investment or for your business operations, you have two broad alternatives: buying or leasing. Let’s take a look at advantages and disadvantages of these two choices.
When buying warehouse space, the pros include the fact:
- That your costs are basically constant, with regards to the monthly mortgage payments
- That you can have substantial tax deductions, including property taxes and mortgage interest.
- That you can rent out some of your warehouse space in the event that you need more cash inflow
- That you can build up substantial equity, as the property is likely to appreciate over time.
On the other hand, the disadvantages of buying a warehouse property include:
- Not having much flexibility. Since you own the property, it is more difficult to relocate in the event that your business requires it.
- Having high upfront expenses, particularly because of the down payment that is required. You will also need to pay for maintenance, appraisal, and other property costs.
Let us now take a look at the advantages of just leasing warehouse space:
- You have the opportunity to rent a prime property, which can boost the reputation of your business
- You have more working capital because the initial costs are much smaller, particularly because you don’t need to pay for a 30 percent down payment.
- You can focus on actually running your business. This is because you need not concern yourself about managing the property.
Meanwhile, the downsides of simply leasing warehouse space include the fact that:
- Your costs will tend to go up because rent tends to rise regularly.
- You do not build up any equity in the property, since you don’t own it.
You may want to consider the trends and statistics in terms of prices, supply, and demand with regards to warehouses in Costa Mesa to help you make a choice.
Costa Mesa 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% 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 of 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.
Costa Mesa Warehouse Property for Lease – Trends and Statistics
- The asking rent for warehouse properties for lease in Orange county in dollars per square foot per year is $11.29. This represents a 0.2% increase over the past three months, and an 8.7% 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.