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 4th safest city with more than a quarter of a million residents in this country.
Santa Ana Office Buildings for Sale & Lease – Should You Buy or Lease?
If you are interested in office space, be that as an investment or to run a business out of, you have two broad choices available to you: buying or leasing. There are pros and cons to both of these options.
Looking first at purchasing office space, the pros include:
- That your costs are fixed, which means you are clear with regards to your business expenses
- That you can get really good tax deductions, including property taxes and mortgage interest.
- That you can rent some of your space out so that you can earn an extra cash inflow
- That you can build up retirement savings, as the property is likely to increase in value over time.
However, the cons are substantial as well and these include:
- Not having much flexibility, which means that if your business changes either positively or negatively, 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 take into account.
Your other option is to lease your office space, which also has clear benefits, including:
- 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 substantial down payment.
- You can focus on actually running your business, rather than be concerned about property ownership.
However, there are some downsides as well, including:
- Your costs will be variable because of 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 Office Space for Sale – Trends and Statistics
- The average office property asking price, sales trends, in dollars per square foot for the county was $311.66, a three month decrease of 0.2%, but year-on-year increase of 11.3%. This is lower than the metro area ($317.28), but higher than the state ($226.32).
- The index of total available office spaces for sale in the metro area that includes Santa Ana. 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 Santa Ana 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 Santa Ana 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 Santa Ana is 36, which is a 1.8% increase over the past three months, but a 19.5% decrease year-on-year.
Santa Ana Office Space for Lease – Trends and Statistics
- The average asking rent for office space for lease in Santa Ana expressed in dollar per square foot per year is $19.89, which is a 1.4% increase over the past three months, and a 2.6% increase year-on-year. This is lower than the county ($24.3), metro ($25.41), and state ($23.08) area.
- The index of total number of office spaces for lease in the metro area that includes Santa Ana 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 Santa Ana 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 Santa Ana is 58, which is a 3.7% decrease over the past three months, and a 12.4% decrease year-on-year.