Newport Beach is a hub for tourists in Orange County, California, with stunning seaside views and plenty of rental opportunities for office space and residents. It comes as a surprise to some to learn that Newport Beach is also home to various industrial sectors as well. Purchasing or leasing a warehouse property in this area can be more expensive than other locations in the county, but it also puts you closer to the action, especially if your business revolves around sales.
The city has a growing population with more than 87,000 residents at the last count. The median household income is more than $107,000, making it a prosperous city. The largest economical sector in the city is business and finance, with building maintenance and construction coming in at a far second and third.
Newport Beach is divided into ten neighborhoods: Balboa Village, Corona Del Mar, Fashion Island, Cannery Marina Village, Balboa Peninsula, Balboa Island, Back Bay, the Airport District, Crystal Cove, and Mariner’s Mile.
Newport Beach Warehouse Building for Sale & Lease
Warehouse buildings offer growth potential to business owners, investors, and industrial sectors by providing spaces for recycling, automotive, manufacturing, sorting, storage, and more. Depending on the type of business you run, you may have a difficult time finding the right location to setup shop. Your best bet is to take advantage of one of the many realtors in Newport Beach, and take a tour of available spaces to find one that suits your needs.
Once you’ve seen the best of the industrial areas, you can better understand your financial options in terms of renting or buying. Buying requires a hefty down payment, and a loan to cover the rest of the cost. Warehouses in this part of Orange County can go for anywhere between $2 million and $6 million dollars on average.
Leasing a warehouse will take less capital upfront, but you’ll be required to pay based on square footage, as well as proximity to the city center. Prime industrial locations with modern conveniences, and locations close to the water in Newport Beach will all cost slightly more.
Newport Beach Warehouse Property for Sale
Buying warehouse property in Newport Beach can cost on average between $700,000 and 8,000,000. Again, this depends on the size of the location, the amenities available, and other special features such as waterfront access, parking lots, and even some on-site equipment. Owning, rather than leasing provides the opportunity to use the site as a source of income, as well as relieving the stress of an unsecure business location. Large properties can be split so that you can rent out portions to other businesses. Some companies in Newport Beach simply require storage, while others may use a space to manufacture or package goods.
Owning a warehouse gives you the upper hand when it comes to creating a lease agreement. It should be noted that the owner normally takes on the responsibility of maintenance and security, but industrial sites with heavy machinery, unique business models, and long term leases allow owners to pass on this responsibility to renters. In short, owning a warehouse in Newport Beach could be a stress-free source of income, if you can find a renter willing to take on your space.
One of the downsides of buying, however, is that once you own a warehouse, you need to put it to use, rent it out, or sell it. Otherwise, it would be just sitting around collecting dust and costing you in property taxes and upkeep. High residential districts, like Newport Beach, aren’t exactly goldmines for warehouse leases, which means you may have to do a little digging to find a good lessee.
Newport Beach Warehouse Property for Lease
If you’re on the other end of the industrial real estate stick, you would be looking to lease a warehouse property rather than buy one. There is a higher availability of rentals than warehouses for sale in this district, so you’re in luck. Your cost will be evaluated based on square footage and could run anywhere on average between $26 and $257 per square foot per year. The payments are outlined on a yearly basis, but warehouse property leases offer some of the longest terms, and could go on for as many as ten years depending on the wishes of the owner, and your own preference.
Long term leases are good for warehouses because of all the time that goes into setting up and operating. Moving house can take months, and it’s even longer to clean up after abandoning ship. If you plan to lease, look for a space with a long term lease, but with some flexibility. As the market changes, you could risk higher costs over time, and it’s a good idea to work with a lawyer and get the best possible financial coverage if the owner decides to increase the price following the end of the contract. An option for renewal is also a good practice, although, not a necessity.