Garden Grove is a city located in the northern part of California’s Orange County. It is just 34 miles to the south of the Los Angeles city border. According to the 2010 U.S. Census, it had a population of 170,883 at that point in time. The Garden Grove Freeway, which is State Route 22, crosses the city from east to west. West Garden Grove is naturally in the western part of the city.
Garden Grove Industrial Building for Sale & Lease – Should You Buy or Lease?
For those who need industrial space in Garden Grove, be that as an investment or for running a business out of, they have two major alternatives: buying or leasing. It is vital to take the note of the advantages and disadvantages of each choice.
With regards to buying industrial space, the pros include the fact that:
- Monthly costs are practically constant, except for some periods when some repairs will be needed
- Substantial tax deductions are available, including property taxes and mortgage interest.
- You can rent out some of industrial space, which would be helpful during those times when more cash inflow would be needed.
- You gain a possibly substantial profit in the end, as the property is likely to appreciate over time.
On the other hand, the disadvantages include the fact that:
- You are basically tied down to that particular property. Moving to another property would be more difficult than if you just rented it because you’ll need to find a buyer first.
- You have high upfront costs. At least 30% of the selling price is required as down payment. You will also have maintenance, appraisal, and other property costs to pay.
Your other option is to lease your industrial space, which has several benefits, including the fact that:
- You can get a prime property, which can bolster your reputation.
- You have more working capital because you don’t have to pay for a large down payment.
- You can concentrate on running your business. You don’t have to worry about managing the property.
Nevertheless, there are some downsides to be considered, including the fact that:
- Your costs will not be constant, primarily because of the rent increases that occur from time to time.
- You are not able to benefit from the appreciation of the value of the property.
To help choose between the two options, knowing the trends and statistics in terms of prices, supply, and demand, can be very helpful.
Garden Grove Industrial Property for Sale – Trends and Statistics
- The current price for industrial properties in Garden Grove in in dollars per square foot is $222.13, which is a 2.7% increase over the past three months, and a 10.9% increase year on year. This is higher than the state (142.69) and the metro ($195.29) area.
- The index of total available industrial properties for sale in Los Angeles-Long Beach-Garden Grove 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-Garden Grove 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 industrial property for sale in the Los Angeles-Long Beach-Garden Grove 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-Garden Grove metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Garden Grove Industrial Property for Lease – Trends and Statistics
- The current rent for industrial properties for lease in Garden Grove 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) and metro ($11.75) area.
- The index of total number of industrial spaces for lease in the Los Angeles-Long Beach-Garden Grove 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-Garden Grove 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-Garden Grove area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.