Purchasing retail property in Westminster, CA has pros and cons in terms of a financial investment. A 2014 report on the Westminster city website indicates that the median age of residents within the township is 35 to 54. This is the primary target of several retail establishments, as this is the age range of most working residents within Orange County.
The overall population of Westminster as of 2014 was 91,652, with an upward trajectory showing a wide margin for continued growth over the following decade. Retail owners have many options in Orange County, whether you choose to utilize the space for your own business or lease it to others. Either way, there is a potential for income, and ownership means that you have less restrictions and more freedom in how you use the space, so long as it is properly zoned.
Westminster Retail Building for Sale & Lease
The majority of retail buildings in Westminster are within the food and beverage industry. In 2010, the city reported that 288 permits were granted to businesses of this kind, with 259 going to clothing and apparel stores, and 128 to home furnishing shops. Other stores which applied for permits that year included grocery stores, building material stores, service stations, and auto dealerships.
Of course, if you have a shop that falls outside of these niche’s it could mean better business for you, as the Westminster market isn’t overly saturated in alternative shopping venues. Scout out locations where your business will stand out, rather than setting up across from a competitor. A business advisor would be a great asset when determining the buying or leasing potential of any given area.
Westminster Retail Property for Sale
Buying a retail property is a big step, especially if you’re unsure about future growth. Buying a location which is too small to meet future needs, means you’ll need to sell in the future or rent the space to another business and find something more suitable for your own. Currently the average cost of purchasing retail property in Westminster is between $500,000 and $6,000,000. This is quite a jump in price, but when you look at the size and location of the buildings, you will see why. Buying retail space near a mall, eateries, or a hotel will cost more than buying away from these busy locations. Foot traffic is an important part of the retail world, and to be successful, you must set up shop in an area where you can reach your market audience.
Not all retail property owners in Westminster use the properties for their own businesses. You could also rent the space to another business and use it as a source of income. Retail real estate is a unique asset to have in an investment portfolio, particularly if you purchase in an area where retail and residential zones are increasing dramatically.
Westminster Retail Property for Lease
Leasing a location tends to be easier than buying, at least in terms of finding a location that suits your retail needs. There are more spaces for lease in Westminster than there are for sale. These units are leased based on a value per square foot. Currently the average price range falls between $17 to $40 per square foot per year. Contracts can be stretched from one year to five, with larger properties allowing for even longer contracts, up to ten years. Before you begin the leasing process, you should determine how long you feel your business will be profitable in a certain location. There is an upside and a downside to a short lease. On one hand, a short-term lease makes it easy to move should the area not work out. On the other hand, it allows the owner to raise the rent as soon as the term is over, or to sell or rent to somebody else following the completion of your contract.
When leasing a property, it’s also important to determine whose responsibility it will be to maintain the property. Most retail properties in Westminster are managed by the company which owns them, but some contracts may specify that the renter must upkeep certain areas of the property, or manage all maintenance requirements on their own.
Whether you choose to buy or lease, once you have chosen a location, speak to local retail owners and see what they say about their personal experiences in owning properties in Westminster. There’s no greater resource than the experience of others, because it offers true insight into potential successes and failures that could accompany the property.
If you choose to lease, negotiate with the owners to reach a certain price and maintenance plan that work for you. One of the prime benefits to leasing is that you’re not responsible for much of the upkeep. You will need to have your own retail property insurance in place.