Fountain Valley is a middle class bedroom community in Orange County, California, and was home to 55,313 people in 2010, according to the U.S. Census. The majority of people who live there commute, and mainly to the Southpark district near the Santa Ana River, which is a new commercial center. Historically, the city’s economy was based largely on agriculture, but this has now largely been replaced by offices. The city is committed to supporting small businesses, and encouraging its residents to start their own opportunities. A number of national headquarters (Surefire, LLC, Kingston Technology, D-Link Corporation, and Hyundai Motor America) are also based in the city. Most, of them have their offices in the Southpark district. Commercial growth is perhaps best seen in the fact that the San Diego Freeway (405) comes nearly to a standstill during rush hour.
Fountain Valley Office Buildings for Sale & Lease – Should You Buy or Lease?
If you are interested in office space in Fountain Valley, be that as an investment or to run a business out of, you have two choices: buy or lease.
The benefits of buying office space in Fountain Valley include the fact that:
- Your monthly costs for the office space will remain unchanged for the duration of the mortgage.
- You can claim substantial tax deductions, including property taxes and mortgage interest.
- You can have extra income if you decide to lease out part of the property.
- The office space will tend to increase in value over time.
Meanwhile, the cons of purchasing office space include the fact that:
- It is harder to relocate in the event that your business grows too rapidly such that there is no more room for expansion. You will need to sell the property first before you can move on to another location.
- You need will usually need to pay least a 30% down payment on the mortgage. You will also have maintenance, appraisal, and other property costs to pay. These could take away a large chunk from your capital.
If you lease your office space, there are some advantages, including the fact that:
- It is possible to get a prime office space, which is important for your business reputation.
- You have more working capital because you don’t have to pay for a large down payment.
- You can focus on actually running your business, rather than being bothered by the usual problems that come with property ownership.
However, there are some disadvantages to leasing your office space, including the fact that:
- Your monthly costs can change because of possible rent increases.
- You do not build up any equity in the property, since you don’t own it.
Below are the trends and statistics in terms of prices, supply, and demand, to help you make your choice whether to buy or to lease.
Fountain Valley Office Space for Sale – Trends and Statistics
- The average office property asking price, sale trends, in dollars per square foot for the county was $311.66, a three month decrease of 0.2%, but year-on-year increase of 11.3%. This is lower than the metro area ($317.28), but higher than the state ($226.32).
- The index of total dollars available for office spaces for sale in the metro area that includes Fountain Valley is 34, which is a 6% increase over the past three months, but a 3.7% decrease year-on-year.
- The index of total number of listings of office properties for sale in the metro area that includes Fountain Valley is 35, which is a 5.5% increase over the past three months, but an 8.4% decrease year-on-year.
- The profile view index for office properties for sale in the metro area that includes Fountain Valley is 138, which is a 19% increase over the past three months, and a 14.5% increase year-on-year.
- The index of total square feet of available office properties for sale in the metro area that includes Fountain Valley is 36, which is a 1.8% increase over the past three months, but a 19.5% decrease year-on-year.
Fountain Valley Office Space for Lease – Trends and Statistics
- The average asking rent for office space for lease in Fountain Valley expressed in dollars per square foot per year is $19.20, which is a 7.5% increase over the past three months, and a 20.8% increase year-on-year. This is lower than the metro ($25.41), county ($24.33), and state ($23.08) area.
- The index of total number of office spaces for lease in the metro area that includes Fountain Valley is 61, which is a 1% increase over the past three months, and a 3.1% increase year-on-year.
- The profile view index for office spaces for lease in the metro area that includes Fountain Valley is 115, which is a 49.7% decrease over the past three months, and a 28.4% decrease year-on-year.
- The index of total square feet available for office spaces for lease in the metro area that includes Fountain Valley is 58, which is a 3.7% decrease over the past three months, and a 12.4% decrease year-on-year.