Tustin is a city found in Orange County, within the Los Angeles metropolitan area in California. According to the 2010 U.S. Census, 74,540 people lived there at that time, making it a relatively small city. It is right next to Santa Ana, the county seat. Interestingly, the Tustin Foothills are not part of Tustin itself. In 2009, Forbes chose Tustin as one of 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 Southern California’s shortest average commutes. Besides startups and sole proprietorship businesses, people in Tustin commonly work for the education system, the health care system, and manufacturing companies. However, the median household income as of 2010, according to the U.S. Census, was just $74,011 and more worrisome was that 12.2% of the population was classed as living below the poverty line. While the median income had actually increased since the 2000 U.S. Census, when it stood at just $55,985, the poverty level has also increased tremendously. In 2000, just 8.5% of the population (5.8% of families) were classed as living below the poverty line, with 6.2% of them over the age of 65 and 10.8% younger than 18. As such, while classed as a good place to live well in, many residents of Tustin may disagree. This is in part due to the high cost of living and Orange County being an affluent area.
Tustin Warehouse Building for Sale & Lease – Should You Buy or Lease?
If you are interested in warehouse space in Tustin, you can either buy or lease it.
Advantages of buying warehouse space, include the fact that:
- Your monthly costs will remain constant during the duration of the mortgage.
- You can get really good tax deductions, including property taxes and mortgage interest.
- You can rent out some of the warehouse space, which provides you with an extra cash inflow.
- The value of the property will tend to increase over time.
On the other hand, the disadvantages include the fact that:
- In the event that your business grows much faster that you expected and the warehouse space is no longer sufficient, you will need to sell it first before you can move to another location.
- You will need to pay at least a 30% down payment on the mortgage. You will also have maintenance, appraisal, and other property costs to pay.
When you lease warehouse space, your benefits include the fact that:
- You have more working capital because upfront costs are much lower.
- You will not be bothered by the stresses that come with property ownership.
With regards to the cons of leasing, these include the fact that:
- Your monthly costs may rise because of possible rent increases.
- You do not build up any equity in the property, since you don’t own it.
Below are trends and statistics in terms of prices, supply, and demand, to help make your choice.
Tustin Warehouse Property for Sale – Trends and Statistics
- The asking prices for warehouse properties in Tustin 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 dollars available for warehouse properties for sale in Los Angeles-Long Beach-Tustin 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-Tustin 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-Tustin 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-Tustin metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Tustin Warehouse Property for Lease – Trends and Statistics
- The asking rent for warehouse properties for lease in Tustin in dollars per square foot per year is $12.93. This represents a 1.3% increase over the past three months, and a 10.1% increase year on year. This is higher than the state ($10.31) area and the metro ($11.75) area.
- The index of total number of warehouse spaces for lease in the Los Angeles-Long Beach-Tustin 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-Tustin 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-Tustin area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.