Garden Grove is a city found in the northern parts 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 time. The city is home to the Garden Grove Freeway, which is State Route 22, and this crosses the city from east to west. West Garden Grove is the western part of the city.
Garden Grove Office Buildings for Sale & Lease – Should You Buy or Lease?
If you are interested in office space in Garden Grove, whether for investment or for running a business out of, you have two broad alternatives available: buying or leasing. It should be noted that there are a number of pros and cons for both options.
Looking first at buying office space, the advantages include the fact that:
- Your costs are fixed, which means you have clarity when it comes to business expenses for the property.
- You can take advantage of tax deductions, including property taxes and mortgage interest.
- You can have some of your space rented as a way to generate more cash flow.
- You can build up some profit, as the property is likely to increase in value over time.
On the other hand, the cons are substantial as well such as:
- Not having much flexibility – because you own the property, you will have to sell it if you ever decide to move to another location.
- Having substantial upfront costs – you need to come up with a down payment, which is often at least 30 percent of the purchase price. In addition, you will need to take care of maintenance, appraisal, and other property expenses.
The other alternative is to lease office space, which has a number of benefits, including the fact that:
- You can rent 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.
- You can focus on actually running your business. Taking care of the office building will be handled by the owner.
However, there are some downsides as well, including the fact that:
- Your costs will gradually increase because of regular rent increases.
- You do not build up any equity in the property, since you don’t own it.
Being aware of the trends and statistics in terms of prices, supply, and demand, is important for those who are considering getting an office space.
Garden Grove Office Space for Sale – Trends and Statistics
- The average office property asking price, in dollars per square foot for the county is $311.66, which represents 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 available office spaces for sale in the metro area that includes Garden Grove 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 Garden Grove 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 Garden Grove 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 Garden Grove is 36, which is a 1.8% increase over the past three months, but a 19.5% decrease year-on-year.
Garden Grove Office Space for Lease – Trends and Statistics
- The average asking rent for office space for lease in Garden Grove expressed in dollar per square foot per year is $24.33, which is a 1.9% increase over the past three months, and a 5% increase year-on-year. This is lower than the metro ($25.41) area, and higher than the state ($23.08) area.
- The index of total number of office spaces for lease in the metro area that includes Garden Grove 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 Garden Grove 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 Garden Grove is 58, which is a 3.7% decrease over the past three months, and a 12.4% decrease year-on-year.