San Clemente is found in California’s Orange County. According to the U.S. Census, it had a population of 63,522 in 2010, which is relatively small. It is located on the coast of California, in between San Diego and Los Angeles. It is well-known for its pleasant climate; mountain, hill and ocean views; and Spanish Colonial architecture. It is often referred to as “Spanish Village by the Sea”.
In 2010, 64% of all residential properties were owner-occupied and 36% were renter occupied. There was also a 1.3% vacancy rate for homeowners, and a 5.8% vacancy rate for rental properties. The census also showed that the median household income was $87,184, which represents a slight decrease from the 2000 census, when it was $87,200. The 2010 census also showed that 7.9% of people within the city lived below the poverty line.
San Clemente Industrial Building for Sale & Lease – Should You Buy or Lease?
If you are interested in industrial space in San Clemente, be that as an investment or to run a business out of, you can either buy or lease.
Looking first at buying industrial space, the pros include the fact that:
- Your monthly costs are fixed because the monthly amortization won’t change during the duration of the mortgage.
- You can get really good tax deductions, including property taxes and mortgage interests.
- You can rent out some of the industrial space, providing you with some extra income.
- You will benefit from the tendency of the value of the property to rise over time.
The cons of buying industrial space include the fact that:
- You don’t have much flexibility. If your business contracts or grows too fast and you need to relocate you will need to sell the property first.
- You have high upfront costs, not in the least because of a 30% down payment on the mortgage. You will also have maintenance, appraisal, and other property costs to pay.
Leasing industrial space has a number of advantages, including the fact that:
- You can lease a prime industrial property, which is important if you want to enhance your public image.
- You have more working capital because you don’t have to pay for a deposit.
- You can focus on actually running your business, because you are not bothered by the concerns of property ownership.
With regards to the downsides of leasing industrial space, these include the fact that:
- Your monthly costs will tend to increase as rent increases.
- 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 beneficial.
San Clemente Industrial Property for Sale – Trends and Statistics
- The asking prices for industrial properties in San Clemente in dollars per square foot is $222.13, which is a 2.7% increase 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 industrial properties for sale in Los Angeles-Long Beach-San Clemente 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-San Clemente is 26, which is a 7.7% increase over the past three months and a 7.2% increase year on year.
- The profile view index industrial property for sale in the Los Angeles-Long Beach-San Clemente 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-San Clemente metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
San Clemente Industrial Property for Lease – Trends and Statistics
- The asking rent for industrial properties for lease in San Clemente 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 industrial spaces for lease in the Los Angeles-Long Beach-San Clemente 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-San Clemente 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-San Clemente area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.