Mission Viejo is a city in Orange County, California, that is nestled in the Saddleback Valley. It is one of this country’s largest master planned communities that was constructed under a single project. Only Colorado’s Highlands Ranch comes close in size. According to the 2014 U.S. Census, the estimated population was 96,346 at that time. The culture of Mission Viejo is strongly suburban and residential, although some businesses and offices do exist. It is a picturesque city, with the National Arbor Day Foundation recognizing it for its tree-lined neighborhoods. The biggest employer in Mission Viejo is the Mission Hospital, followed by Saddleback College and the Capistrano Valley Unified School District. Other top employers include retailers Nordstrom, Macy’s, and Target.
Mission Viejo Industrial Building for Sale & Lease – Should You Buy or Lease?
If you are interested in getting an industrial building in Mission Viejo, perhaps for your business or simply for investment, you have two choices: buying or leasing. It is vital to examine the various advantages and disadvantages of each choice.
Buying industrial space has a number of benefits:
- You don’t get any surprises when it comes to monthly expenses, particularly with the amortizations
- Several tax deductions are allowed, including property taxes and mortgage interest.
- You can generate extra cash by renting out unused industrial space
- You can build up substantial funs, as the price of the industrial building will tend to go up over time.
Of course, there are also some disadvantages:
- It is not an easy task to dispose of an industrial building if you need to move to another location or you are shutting down your business. It takes several months to complete the process of selling the property.
- You have high upfront costs. This is because of the down payment that you will need to pay.
- You will also need to take care of maintenance, appraisal, and other property expenses.
Meanwhile, if you simply lease an industrial building, you will enjoy certain benefits:
- Because of the lower upfront expenses, you have a chance of getting a prime industrial space. This can boost the image of your business.
- You have more working capital because you don’t have to pay for a down payment.
- You don’t have to worry about the usual problems that property owners have to face.
On the other hand, leasing has some disadvantages:
- Rent can increase, depending on the terms of the lease contract. This can be a burden if the increase is large.
- You do not build up any equity in the industrial property.
To help decide whether to buy or lease, being aware of the trends and statistics in terms of prices, supply, and demand, can help.
Mission Viejo Industrial Property for Sale – Trends and Statistics
- The asking price for industrial properties in Mission Viejo in in dollars per square foot is $222.13, which is a 2.7% over the past three months, and a 10.9% increase year on year. This is higher than the metro ($195.29) and state ($142.69) area.
- The index of total available industrial properties for sale in Los Angeles-Long Beach-Mission Viejo 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-Mission Viejo 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-Mission Viejo 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-Mission Viejo metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Mission Viejo Industrial Property for Lease – Trends and Statistics
- The asking rent for industrial properties for lease in Mission Viejo in dollars per square foot per year is $12.93. This represents a 1.3% increase over the past three months, and an 10.1% increase year on year. This is higher than the state ($10.31) area, and the metro ($11.75) area.
- The index of total number of industrial spaces for lease in the Los Angeles-Long Beach-Mission Viejo 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-Mission Viejo 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-Mission Viejo area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.