Placentia is found to the north of Orange County, California. It had a population of 50,533 in 2010, which is quite small, although this was an improvement from the population in 2000, which was just 46,488. It is a quiet city and mainly a bedroom community, which was given the “All America City” award in 1971 by the National Civic League.
The Metrolink project was started in downtown Placentia in 2013, having been financed in part by the Orange County Transit Authority (OCTA). Its goal is to revitalize the area and it will include the construction of new homes, entertainment, retail, and mixed used properties, as well as the train station. The city is also has the OC Bridges project that is being done in cooperation with the OCTA and the city of Fullerton, and is expected to be completed this year.
Placentia Warehouse Building for Sale & Lease – Should You Buy or Lease?
If you are interested in warehouse space in Placentia, you can either buy or lease. Let us examine the pros and cons for both of these options.
The benefits of buying warehouse space include the fact that:
- Your monthly costs are fixed because the monthly amortizations remain constant for the duration of the mortgage.
- You can file for tax deductions, including property taxes and mortgage interests.
- You can rent out some of the warehouse space, to obtain an additional source of cash inflow.
- You can benefit from the tendency of the warehouse value to rise over time.
With regards to the cons of buying warehouse space, these include the fact that:
- You don’t have much flexibility because if your business contracts or grows too fast, you will not be able to relocate as fast as you would want to. This is because you will need to sell the property first.
- You have high initial costs. First of all, you will need to pay for at least a 30% down payment on the mortgage. You will also need to pay for maintenance, appraisal, and other property costs.
Now, when it comes to leasing warehouse space, the benefits include the fact that:
- You can get a prime property, which is important if your public image matters.
- You can free up working capital because you don’t have to pay for a down payment.
- You can focus on running your business, because you need not be concerned with the usual stresses that come with property ownership.
But the disadvantages of leasing space include the fact that:
- Your monthly costs will tend to rise because of rent increases.
- You do not build up any equity in the property because you don’t own it.
To help decide between the two choices, being aware of the trends and statistics in terms of prices, supply, and demand, can be beneficial.
Placentia Warehouse Property for Sale – Trends and Statistics
- The asking prices for warehouse properties in Placentia 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) area and state ($142.69) area.
- The index of total dollars available for warehouse properties for sale in Los Angeles-Long Beach-Placentia 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 warehouse properties available in Los Angeles-Long Beach-Placentia 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 of warehouse property for sale in the Los Angeles-Long Beach-Placentia 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 warehouse space for sale in the Los Angeles-Long Beach-Placentia metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Placentia Warehouse Property for Lease – Trends and Statistics
- The asking rent for warehouse properties for lease in Placentia in dollars per square foot per year is $12.93. This represents a 1.3% increase over the past three months, and a 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 warehouse spaces for lease in the Los Angeles-Long Beach-Placentia 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 warehouse properties for lease in the Los Angeles-Long Beach-Placentia 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 warehouse space available for lease in the Los Angeles-Long Beach-Placentia area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.