Yorba Linda is actually a Spanish name and it means “Beautiful Yorba”. It is found in California’s Orange County and is a very suburban city that is located just 37 miles to the southeast of Downtown Los Angeles and 13 miles to the northeast of Downtown Santa Ana. Yorba Linda is the birthplace of Richard Nixon, although they had already moved away before it was incorporated. Proud of its connection to the former president, the city is home to the Richard Nixon Presidential Library and Museum.
Commerce and Businesses in Yorba Linda
There is significant commerce in Yorba Linda as well, primarily at the Savi Ranch. In addition, there are many other shopping centers as well, including the Country Club Village, the Yorba Linda Station Plaza, Packing House Square, Mercado del Rio, and Eastlake Village Shopping Center.
Over 1,000 businesses operate in Yorba Linda, and some 1,500 more can be found in residential homes. The economy is geared towards small businesses. In fact, it was ranked second best in the state by Fundera for small businesses. Additionally, it is home to the Black Gold Golf Club and a wealth of nonprofit organizations, including STEMpowerment Inc., and the International Student Volunteers.
The biggest employers in Yorba Linda are CareFusion, Nobel Biocare, Costco, the City of Yorba Linda, Vons, Kohl’s, Best Buy, Sunrise Senior Living, Office Solutions, and Cobra Engineering.
Savi Ranch
Savi Ranch is the economic heart of the city. It is home to office buildings, hotels, restaurants, auto dealers, and retailers. Originally designed as an auto mall, residents rejected this plan and wanted something that included other types of retail as well. Interestingly, out of the three car dealer zones, two are empty. Two of the biggest anchor tenants to Savi Ranch were Home Depot and Best Buy. Also, Savi Ranch is actually bordered by both Yorba Linda and Anaheim. As a result, some stores contribute to the economy of one, and others to the other, depending on which part of the mall they are in.
John Force Racing is also at Savi Ranch. This location also includes a museum, which is fully dedicated to John Force himself, 16 time NHRA Funny Car Champion. Furthermore, John Force Racing is headquartered there.
Yorba Linda Commercial Buildings for Sale & Lease
Yorba Linda is made for small businesses, and there are numerous options available to them. A number of properties, part of commercial real estate (CRE), are available for purchase, often with very favorable deals. That said, because the area is so popular with startups, which often don’t have a lot of money, commercial buildings for sale & lease are also regularly purchased as an investment by individuals or real estate investment trusts (REITs), who then lease the property out.
If you require CRE for your own business operations, therefore, you need to consider which of the two options is best for you. Should you lease, or should you buy? Unfortunately, this is an incredibly difficult question to answer because there are so many different factors involved in it. While it may be tempting to simply compare what you pay per month on lease, and what you pay per month on mortgage, this isn’t always the best way to approach to take. This is because both options have a number of associated costs and discounts, as well as a number of strong advantages and disadvantages.
Yorba Linda Commercial Property for Sale
One way to start is by comparing your options for a commercial property for sale, whether you want to run a business or make an investment, is in CRE trends. For Yorba Linda, those are:
- Multifamily properties in the county usually cost around $314,841.90, which is a 0.7% rise compared to the last three months, and a year on year 10.5% rise.
- Office properties in the county usually cost around $311.66 per square foot. This is a quarterly decline of 0.2%, although it represents a 11.3% year on year rise.
- Industrial properties in the county usually cost around $222.13 per square foot, which equates to a quarterly rise of 2.7% and a year on year rise of 10.9%. If you own industrial property, you can usually charge rent of $10.96 per square foot per year in Yorba Linda, which has been unchanged both over the past three months and over the past year. That price is lower than the county and metro area, but higher than the state.
- Retail properties usually cost around $408.88 per square foot, which has been stagnant over the past quarter. Year on year, however, this is a 14.5% rise.
Yorba Linda Commercial Property for Lease
Although Yorba Linda is very attractive to startup companies, purchasing CRE still requires a serious financial investment. In fact, you usually need to put down 30% towards the mortgage if you are to be accepted.This is money that most startups don’t have or, if they do, can’t tie up in a mortgage as it was supposed to drive growth in the company instead. As a result, a commercial property for lease is often the only suitable alternative for businesses.
Choosing a Team of Professionals to Help You
Before you decide to lease, however, you need a team of professionals around you. This team should include:
- Yourself, with a complete understanding of your needs, requirements, and wishes
- A broker, who can help you find the property that is right for you. This should, whenever possible, be a tenant broker rather than a leasing agent, as the latter works on behalf of the landlord’s interests instead of yours. Landlords usually pay the broker’s fees, so a tenant broker would be preferable. It should be noted that brokers are likely to want you to sign a representation agreement, which means you cannot work with any other broker.
- A lawyer, who can go through the legalities of your lease contract and negotiate a more favorable deal for you
- An accountant, who can determine whether your lease is financially sustainable or not
A lot of the initial work in leasing is negotiating. Landlords will try to get you to agree to a contract that is favorable to them, and you need to try to get them to agree to a contract that is favorable to you. This is where your team comes in very strongly. Some of the negotiable issues on a lease contract are:
- The length and extent of your personal guarantee
- How much you have to pay each month for the lease itself, and what that is based on
- The type of lease construction that is most beneficial to you (percentage lease, net lease, triple net lease, or gross lease)
- The duration of your lease and what happens when it comes to an end
- The possible rent increases, what they are linked to, and how much is the maximum allowable
- Who is responsible for maintenance
- To what extent you are able to change the inside of the building and who will take care of the renovation costs
- Whether you can signpost your store on the outside of the building
- Whether you can sublease the space and, if so, under what conditions
- What types of exit clauses are in place should you want terminate the lease early, for instance, when your business is shutting down
- Your right to transfer your lease if you were to sell your business to a third party
- Specific clauses such as exclusive use or co-tenancy
- The amount of security deposit
The above list demonstrates just how complex a lease contract actually is and how many things there are to take into consideration. Fortunately, with the right team on your side, you should be able to negotiate the contract in such a way that it best serves your needs. This is often a lengthy process, which is something you have to be aware of.
Why It May Be Better to Purchase
One of the main disadvantages of leasing over purchasing is that you have to deal with all of the above. When you purchase, you are much less restricted in terms of what you can and cannot do with your property. Furthermore, it provides a degree of security since, if your business does go down, you can simply become a landlord so that you are never truly out of pocket. Plus, CRE is known to be one of the highest yields, lowest risk forms of real estate investment due to the fact that the world is driven on commerce. As a result, it is highly likely that your property will be worth a lot more in the future.
The Issue of Zoning
One potential issue is that of zoning. Zoning is set up by local authorities to determine what type of business can run where. For instance, it is not permitted to run a children’s charity in an area with heavy industry and machinery, as this would pose a significant danger to the children. Instead, similar types of commercial properties (factories, warehouses, shops, beauty places, and so on), tend to be found in certain geographical locations.
Conclusion
What matters most of all, however, is that you understand just how big of a decision leasing or buying is. You must take the time to properly compare your options before coming to a decision. Do make sure, however, that you ask your team for advice!