Garden Grove is a city found in the northern part of Orange County in California. It is just 34 miles to the south of the border of Los Angeles City. According to the 2010 U.S. Census, it had a population of 170,883 during 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.
Garden Grove Retail Building for Sale & Lease – Should You Buy or Lease?
If you are interested in retail space in Garden Grove, either as an investment or for business, you have two broad choices: buying or leasing. It is advisable to consider the pros and cons of both options.
When buying retail space, the advantages include the fact that:
- Property costs are basically constant, which means you have clarity on your business expenses.
- You can file for good tax deductions, including property taxes and mortgage interest.
- You can rent out some of the retail space in the event that you need to augment your cash inflow.
- You can build up a substantial profit that you can benefit from when you sell the property, as real estate tends to increase in value over time.
However, the cons are substantial as well and include:
- Difficulty of moving to another property in case you need to move. You will need to find a buyer first and finalize the sale of the property.
- Having high upfront costs, primarily due to the down payment, which is usually 30 percent of the purchase price. You will also have maintenance, appraisal, and other property costs to take care of.
Your other option is to lease your retail space, which also have several benefits, including the fact that:
- You can get a prime retail property. This will usually boost your reputation, especially for your business.
- You have much more working capital because you don’t have to pay for a down payment.
- There is no need to worry about managing the property needs, such as maintenance, repair, etc.
However, there are some disadvantages, such as the fact that:
- Your costs will be variable, due to regular rent increases.
- You do not build up any equity in the property, since you don’t own it.
To help decide between the two alternatives, being aware of the trends and statistics in terms of prices, supply, and demand, can be very beneficial.
Garden Grove Retail Property for Sale – Trends and Statistics
- The price for retail properties in Garden Grove in in dollars per square foot is $408.88, which has remained the same over the past three months, and represents a 14.5% increase year on year. This is higher than the metro ($282.45) and state ($214.98) area.
- The index of total available retail properties for sale in Los Angeles-Long Beach-Garden Grove is 45, which represents a 9.7% increase over the past three months and 7.1% increase year on year.
- The index of total number of listings of retail properties available in Los Angeles-Long Beach-Garden Grove is 35, which is a 2.6% decrease over the past three months, as well as a 10.6% decrease year on year.
- The profile view index retail for sale in the Los Angeles-Long Beach-Garden Grove metro area is 123, which is a 10.6% increase over the past three months, and a 14.7% increase year on year.
- The index of total square feet of available retail space for sale in the Los Angeles-Long Beach-Garden Grove metro area is 34, which is a 3.2% increase over the past three months, but an 8.5% decrease year on year.
Garden Grove Retail Property for Lease – Trends and Statistics
- The current rent for retail properties for lease in Garden Grove in dollars per square foot per year is $24.21. This represents a 0.9% decrease over the past three months, but a 0.4% increase year on year. This is higher than the state ($20.88) area, but lower than the metro ($24.88) area.
- The index of total number of retail spaces for lease in the Los Angeles-Long Beach-Garden Grove area is 71, which represents a 2.4% increase over the past three months, and a 1.4% increase year on year.
- The profile view index for retail properties for lease in the Los Angeles-Long Beach-Garden Grove area is 91, which is a 49.3% decrease over the past three months, and a 47.5% decrease year on year.
- The index of total square feet of retail space available for lease in the Los Angeles-Long Beach-Garden Grove area is 69, which is a 5.3% increase over the past three months, and a 3.3% increase year on year.