Santa Ana is Orange County, CA’s county seat. It is also the second most populous city in the county. According to the 2010 U.S. Census, it had a population of 329,427 at that time, which means it is the 57th most populous city in the country. Located in the south of the state, next to the Santa Ana River and just 10 miles from the coast, the city, which was founded in 1869, is part of the Greater Los Angeles Area. With 18 million residents, this is the second largest metro area in the country. Additionally, Santa Ana has been ranked as the 4th safest city with more than a quarter of a million residents in this country.
Santa Ana Industrial Building for Sale & Lease – Should You Buy or Lease?
If you are interested in industrial space, be that as an investment or for running a business out of, you have two major choices available to you: buying or leasing. There are advantages and disadvantages for both of these options.
Looking first at buying industrial space, the pros include:
- That your costs are fixed, which means there won’t be any surprises when it comes to business expenses.
- That you can get some substantial tax deductions, including property taxes and mortgage interest.
- That you can rent some of your space out so that you can boost income when needed
- That you can build up some savings, as the property is likely to increase in value over time.
However, the cons are substantial as well and include:
- Not having much flexibility, which means that if your business contracts or grows, you may have to sell the property sooner than expected.
- Having high upfront costs, not in the least a 30% down payment on the mortgage. You will also have maintenance, appraisal, and other property costs to handle.
Your other option is to lease your industrial space, which also has some benefits, including the fact that:
- You may be able to get a prime property, which is important if your public image matters.
- You can free up some working capital because you don’t have to pay for a substantial down payment.
- You can focus on actually running your business, because you don’t have to worry about the stresses of property ownership.
However, there are some downsides as well, including:
- Your costs will be variable, with regular 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 very beneficial.
Santa Ana Industrial Property for Sale – Trends and Statistics
- The asking prices for industrial properties in Santa Ana 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) and state ($142.69) area.
- The index of total available industrial properties for sale in Los Angeles-Long Beach-Santa Ana 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-Santa Ana 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-Santa Ana 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-Santa Ana metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Santa Ana Industrial Property for Lease – Trends and Statistics
- The asking rent for industrial properties for lease in Santa Ana in dollars per square feet per year is $11.29. This represents a 0.2% increase over the past three months, and an 8.7% increase year on year. This is higher than the state ($10.31) area, but lower than the metro ($11.75), and county ($12.93) area.
- The index of total number of industrial spaces for lease in the Los Angeles-Long Beach-Santa Ana 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-Santa Ana 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 foot of industrial space available for lease in the Los Angeles-Long Beach-Santa Ana area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.