Santa Ana serves as the seat for Orange County in California. 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. This is the second largest metro area in the country with its 18 million residents. Additionally, Santa Ana has been ranked 4th safest city with more than a quarter of a million residents in the U.S.
Santa Ana Warehouse Building for Sale & Lease – Should You Buy or Lease?
If you are interested in warehouse space, be that as an investment or to run a business out of, you have two broad options available to you: buying or leasing. There are pros and cons to both of these options.
Looking first at buying warehouse space, the pros include the fact:
- That your costs are practically constant, which means you have clarity on your business expenses.
- That you can get really good tax deductions, including property taxes and mortgage interest.
- That you can rent out some of the warehouse space in case there is still some space available and you need the income
- That you can build up some savings, as the property is likely to appreciate over time.
However, the cons are important to consider too:
- Not having much flexibility, which means that you may have to sell the property sooner than you expected if business deflates too much or grows too big in size for the current capacity of your warehouse
- Having high upfront costs because you have to pay at least a 30% down payment on the mortgage. You will also have maintenance, appraisal, and other property expenses to consider.
Your other option is to lease your warehouse space, which also has clear benefits, including:
- You can get a prime property, which is important if your public image is vital to you.
- You can free up substantial working capital because you don’t have to pay for a deposit.
- You can focus on actually running your business, rather than on the stresses of property ownership.
However, there are some downsides as well, including:
- Your costs will gradually rise because of the expected regular rent increases.
- You do not build up any equity in the property, since you don’t own it.
To help you select between the two options, being aware of the trends and statistics in terms of prices, supply, and demand, can be very beneficial.
Santa Ana Warehouse Property for Sale – Trends and Statistics
- The prices for warehouse properties in Santa Ana in 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 warehouse 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 warehouse 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 warehouse 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 warehouse 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 Warehouse Property for Lease – Trends and Statistics
- The prevailing rent for warehouse properties for lease in Santa Ana in dollars per square foot 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 warehouse 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 warehouse 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 feet of warehouse 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.