San Clemente is a city in Orange County. In 2010, according to the U.S. Census, it had a population of 63,522 people. It is located on the coast of California, in between San Diego and Los Angeles. It is well-known for its beautiful mountain, hill and ocean views; its pleasant climate; and its Spanish Colonial architecture. It is sometimes called the “Spanish Village by the Sea”.
About 64% of all residential properties in San Clemente were owner-occupied while 36% were renter occupied in 2010. There was a 1.3% vacancy rate for homes and a 5.8% vacancy rate for rental properties. The 2010 census also indicated that the median household income at that time was $87,184, which represents a slight decline compared to the 2000 census, when it was $87,200. It was also noted that 7.9% of the residents lived below the poverty line.
San Clemente Office Buildings for Sale & Lease – Should You Buy or Lease?
If you are interested in office space in San Clemente, you have two major options: buying or leasing. There are pros and cons to both of these options.
First of all, buying office space has advantages, including the fact that:
- Your monthly costs will remain constant because the monthly amortization is fixed during the duration of the mortgage.
- You can file for some tax deductions, including property taxes and mortgage interests.
- You can lease out some of the office space, to generate an extra income stream.
- The value of the property will tend to increase over time.
Meanwhile, the disadvantages of buying office space include the fact that:
- In the event that your business contracts or grows far more rapidly than expected and you need to move to another location, you cannot do so immediately. You will need to sell the property first and this process takes some time.
- You will need to pay at least a 30% down payment on the mortgage. You will also have handle maintenance, appraisal, and other property costs. This means your initial costs will be much higher compared to when you simply lease.
On the other hand, if you lease office space, the advantages include the fact that:
- You may be able to get a prime office space, which can go a long way towards boosting your reputation and that of your business.
- You have a larger working capital left because you have much lower upfront costs.
- You can concentrate on running your business, because you don’t have to be concerned with the usual issues that come with property ownership.
Leasing office space has some disadvantages too, such as the fact that:
- Your monthly costs tend to rise over time. This is because of potential rent increases.
- You do not accumulate any equity in the property, since you don’t own it.
Below are information on the trends and statistics in terms of prices, supply, and demand, to help you make your decision.
San Clemente Office Space for Sale – Trends and Statistics
- The average office property asking price, sale trends, in dollars per square foot for the county was $311.66, a three month decrease of 0.2%, but a year-on-year increase of 11.3%. This is lower than the metro area ($317.28), but higher than the state ($226.32) area.
- The index of total dollars available for office spaces for sale in the metro area that includes San Clemente is 34, which is a 6% increase over the past three months, but a 3.7% decrease year-on-year.
- The index of total number of listings of office properties for sale in the metro area that includes San Clemente is 35, which is a 5.5% increase over the past three months, but an 8.4% decrease year-on-year.
- The profile view index for office properties for sale in the metro area that includes San Clemente is 138, which is a 19% increase over the past three months, and a 14.5% increase year-on-year.
- The index of total square feet of available office properties for sale in the metro area that includes San Clemente is 36, which is a 1.8% increase over the past three months, but a 19.5% decrease year-on-year.
San Clemente Office Space for Lease – Trends and Statistics
- The average asking rent for office space for lease in San Clemente expressed in dollars per square foot per year is $24.33, which is a 1.9% increase over the past three months and a 5% increase year-on-year. This is lower than the metro ($25.41) area, but higher than the state ($23.08) area.
- The index of total number of office spaces for lease in the metro area that includes San Clemente is 61, which is a 1% increase over the past three months, and a 3.1% increase year-on-year.
- The profile view index for office spaces for lease in the metro area that includes San Clemente is 115, which is a 49.7% decrease over the past three months, and a 28.4% decrease year-on-year.
- The index of total square feet available for office spaces for lease in the metro area that includes San Clemente is 58, which is a 3.7% decrease over the past three months, and a 12.4% decrease year-on-year.