La Habra is found in the northwest portion of Orange County, California. It is not to be confused with La Habra Heights, which is located towards the north and is part of a different county, which is Los Angeles County. In 2010, the U.S. Census indicated that La Habra was home to some 60,239 people. The city has a reasonably strong economy, with the top employers being CVS/Pharmacy, Wal-Mart, the City of La Habra, Target, Costco, the La Habra Bakery, Kohl’s, The Home Depot, La Habra Convalescence Hospital, Lowe’s, and VIP Rubber. As such, its economy is based strongly on retail and manufacturing.
The median household income, according to the 2010 U.S. Census, was $60,954. Furthermore, 14% of people lived below the federal poverty line at that time, which is a significant number. Nevertheless, it was a substantial improvement from the 2000 U.S. Census, when the median household income was just $47,652, and at least 19.1% of people lived below the poverty line.
La Habra Retail Building for Sale & Lease – Should You Buy or Lease?
If you want to have some retail space in La Habra, you can either buy or lease that property. There are pros and cons to both of these options.
The benefits of buying retail space include the fact that:
- Your monthly costs that go towards having that retail space will be constant.
- You can claim a number of tax deductions, including property taxes and mortgage interest.
- You can rent out some of your retail space, which would mean an extra income source.
- Your property increases in value over time.
Meanwhile, the disadvantages of purchasing your retail space include the fact that:
- You may find that it is harder to relocate your business in the event that it suddenly contracts or it drastically grows unexpectedly because you will first need to find a buyer for the property.
- A mortgage will usually require a 30 percent downpayment. You will also have maintenance, appraisal, and other property costs to pay.
On the other hand, if you just lease the retail space, your benefits include the fact that:
- It is possible to lease prime retail space, which can boost the image of your business.
- You have more working capital because you don’t have to pay for a substantial down payment.
- You can focus on running your retail business. No need to worry about the problems that come with property ownership.
With regards to the disadvantages of leasing retail space, these include the fact that:
- Your rent may increase.
- You cannot benefit from the increasing value of the retail property.
Below are the trends and statistics in terms of prices, supply, and demand for retail spaces in La Habra, which could help in your decision whether to buy or lease.
La Habra Retail Property for Sale – Trends and Statistics
- The asking prices for retail properties in La Habra in dollars per square foot is $408.88, which has remained the same over the past three months, but represents a 14.5% increase year on year. This is higher than both the metro ($282.45) area and state ($214.98) area.
- The index of total dollars for available retail properties for sale in Los Angeles-Long Beach-La Habra 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-La Habra 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-La Habra 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-La Habra metro area is 34, which is a 3.2% increase over the past three months, but an 8.5% decrease year on year.
La Habra Retail Property for Lease – Trends and Statistics
- The asking rent for retail properties for lease in La Habra in dollars per square foot per year is $16.62. This represents a 0.6% decrease over the past three months, but a 2.7% increase year on year. This is lower than the state ($20.88), metro ($24.88), and county ($24.21) area.
- The index of total number of retail spaces for lease in the Los Angeles-Long Beach-La Habra 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-La Habra 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-La Habra area is 69, which is a 5.3% increase over the past three months, and a 3.3% increase year on year.