Tustin is located in Orange County, within the Los Angeles metropolitan area. In 2010, the U.S. Census found that it had a population of 74,540. Thus, it is a relatively small city. It is right next to Santa Ana, which is the county seat. Forbes included Tustin in the top 25 towns in America to live well in, because it ranks in the top 10% for sole proprietors and startups per capita, as well as having one of shortest average commutes in Southern California. Aside from being employed in startups and sole proprietorships, residents usually work for the education system, the health care system, and manufacturing firms.
The median household income was only $74,011 in 2010. Furthermore, 12.2% of the population were living below the poverty line. It should be noted that the household income had actually increased because in 2000, it was merely $55,985. On the other hand, only 8.5% of the population were living below the poverty line in 2000. Thus, some residents may not agree with Forbes that it is a good place to live well in. Perhaps, this was partly caused by the high cost of living, being part of Orange County, which is quite affluent.
Tustin Retail Building for Sale & Lease – Should You Buy or Lease?
If you are interested in retail space in Tustin, be that as an investment or to run a business out of, you have two choices: buying or leasing.
Let us look first at buying retail space. The advantages include the fact that:
- Your monthly costs are constant because the amortization will not change during the duration of the mortgage.
- You can claim some tax deductions, including property taxes and mortgage interests.
- You can lease out some of the retail space out to add an income stream.
- The value of the office building will increase over time.
Meanwhile, the disadvantages of buying retail space include the fact that:
- There is less flexibility because if your business grows faster than you had expected you will need a bigger space but you cannot move until you have sold the property first.
- You have high upfront expenses, not in the least a 30% down payment on the mortgage. You will also need to take care of maintenance, appraisal, and other property costs.
With regards to leasing retail space, the benefits include the fact that:
- It is possible to lease prime retail space, which can boost your reputation.
- You have a larger working capital because you have lower initial costs.
- You can focus on managing your business because there are no problems with property ownership.
On the other hand the downsides of leasing include the fact that:
- Your monthly expenses tend to go up because of the rent increases.
- You do not build up any equity in the property, since you don’t own it.
Let us examine the trends and statistics in terms of prices, supply, and demand. This can help with your decision making.
Tustin Retail Property for Sale – Trends and Statistics
- The asking prices for retail properties in Tustin in dollars per square foot is $408.88, which has remained the same over the past three months, and represents a 14.5% increase year on year. This is higher than the metro ($282.45) are and state ($214.98) area.
- The index of total dollars available for retail properties for sale in Los Angeles-Long Beach-Tustin is 45, which represents a 9.7% increase over the past three months and 7.1% increase year on year.
- The index of total number of listings of retail properties available in Los Angeles-Long Beach-Tustin is 35, which is a 2.6% decrease over the past three months, as well as a 10.6% decrease year on year.
- The profile view index retail for sale in the Los Angeles-Long Beach-Tustin metro area is 123, which is a 10.6% increase over the past three months, and a 14.7% increase year on year.
- The index of total square feet of available retail space for sale in the Los Angeles-Long Beach-Tustin metro area is 34, which is a 3.2% increase over the past three months, but an 8.5% decrease year on year.
Tustin Retail Property for Lease – Trends and Statistics
- The asking rent for retail properties for lease in Tustin in dollars per square foot per year is $24.21. This represents a 0.9% decrease over the past three months, but a 0.4% increase year on year. This is higher than the state ($20.88) area but lower than the metro ($24.88) area.
- The index of total number of retail spaces for lease in the Los Angeles-Long Beach-Tustin area is 71, which represents a 2.4% increase over the past three months, and a 1.4% increase year on year.
- The profile view index for retail properties for lease in the Los Angeles-Long Beach-Tustin area is 91, which is a 49.3% decrease over the past three months, and a 47.5% decrease year on year.
- The index of total square feet of retail space available for lease in the Los Angeles-Long Beach-Tustin area is 69, which is a 5.3% increase over the past three months, and a 3.3% increase year on year.