Irvine is one of Orange County’s most affluent cities. As a planned city in California, it was first developed in the 1960s by the Irvine Company. It was incorporated in 1971 and, according to the 2010 U.S. Census, it had a population of 258,386 at that time. In 2016, Irvine was officially named as the city in the country with the largest Asian American plurality. In fact, some 45% of the population falls under this demographic. Irvine is home to a lot of industries, including those in the semiconductor and technology fields.
Irvine Office Buildings for Sale & Lease – Should You Buy or Lease?
If you are interested in office space, be that as an investment or to run a business out of, you have two broad options available to you: buying or leasing. There are pros and cons to both of these options.
Looking first at buying office space, the pros include the fact:
- That your costs are basically constant, which means there are no surprises when it comes to your business expenses.
- That you can claim substantial tax deductions, including property taxes and mortgage interest.
- That you can rent out some of your space to augment your income source.
- That you can build up some savings, as the property is likely to increase in value over time.
However, the cons are substantial as well and include:
- Having limited flexibility. If your business either grows substantially or declines drastically, you may need to sell the property.
- Having high upfront costs, mainly due to the down payment that is usually at least 30 percent of the selling price. You will also need to pay for maintenance, appraisal, and other property costs.
Your other option is to lease your office space, which also has clear benefits, including:
- You can get a prime property, which is important for your public image.
- You have more working capital because you don’t have to pay for a down payment.
- You can focus on actually running your business, rather than having to deal with the stresses of property ownership.
However, there are some downsides as well, including the fact that:
- Your costs will be variable as the rent tends to increase from time to time.
- You do not build up any equity in the property, since you don’t own it.
To help choose between the two options, being aware of the trends and statistics in terms of prices, supply, and demand, can be very beneficial.
Irvine Office Space for Sale – Trends and Statistics
- The average office property asking price, sales trends, in dollars per square foot for the county is $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 available office spaces for sale in the metro area that includes Irvine 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 Irvine 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 Irvine 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 Irvine is 36, which is a 1.8% increase over the past three months, but a 19.5% decrease year-on-year.
Irvine Office Space for Lease – Trends and Statistics
- The average asking rent for office space for lease in Irvine expressed in dollars per square foot per year is $29.36, which is a 1.9% increase over the past three months, and a 7.1% increase year-on-year. This is higher than the county ($24.3), metro ($25.41), and state ($23.08) area.
- The index of total number of office spaces for lease in the metro area that includes Irvine 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 Irvine 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 Irvine is 58, which is a 3.7% decrease over the past three months, and a 12.4% decrease year-on-year.