Yorba Linda is a suburban city in California’s Orange County. It is within reach of Downtown Los Angeles and it is the birthplace of Richard Nixon, the 39th president of the U.S., although he moved away before the city’s incorporation. Its famous resident continues to be remembered through the Richard Nixon Presidential Library and Museum. The city is also home to Savi Ranch, a huge commercial district, as well as various other shopping centers. Furthermore, there are 1,000 physical businesses operating within the city, including a further 1,500 businesses out of residential homes. As such, it is a city with a very low level of unemployment and it is becoming increasingly affluent. Additionally, it is a city that is of particular interest to commercial real estate investors.
Yorba Linda Industrial Building for Sale & Lease – Should You Buy or Lease?
If you are interested in industrial space in Yorba Linda, be that as an investment or to run a business out of, you have two broad choices: buying or leasing. Let us examine the pros and cons for both options.
Looking first at buying industrial space, the advantages include the fact that:
- Monthly costs are constant, because the monthly amortizations are fixed for the duration of the mortgage.
- You can apply for good tax deductions, including property taxes and mortgage interests.
- It is possible to rent out some of the industrial space, which results into an additional income stream.
- The value of the property will tend to rise over time.
Buying industrial property also has some disadvantages, such as the fact that:
- It is not that easy to move to another location in the event that the business fails or if it grows too fast. You will need to sell the property first before you can relocate.
- You will need a larger budget than if you were only to lease. This is because you will have to pay at least a 30% down payment on the mortgage. You will also have to be responsible for maintenance, appraisal, and other property costs.
If you lease industrial space, you have various benefits, including the fact that:
- You can lease a prime industrial property, which can benefit your public image.
- You have more working capital because you have lower initial costs.
- You can focus on actually running your business because you are able to avoid the stresses that come with property ownership.
Meanwhile, the downsides of leasing industrial space include the fact that:
- Your monthly rental costs will tend to increase over time.
- You do not build up any equity in the property, since you don’t own it.
Let us now take a look at the trends and statistics in terms of prices, supply, and demand, to help in your decision making.
Yorba Linda Industrial Property for Sale – Trends and Statistics
- The asking prices for industrial properties in Yorba Linda 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) area and state ($142.69) area.
- The index of total dollars available for industrial properties for sale in Los Angeles-Long Beach-Yorba Linda 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 industrial properties available in Los Angeles-Long Beach-Yorba Linda 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 of industrial property for sale in the Los Angeles-Long Beach-Yorba Linda 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 industrial space for sale in the Los Angeles-Long Beach-Yorba Linda metro area is 26, which is a 0.2% decrease over the past three months, and an 18.8% decrease year on year.
Yorba Linda Industrial Property for Lease – Trends and Statistics
- The asking rent for industrial properties for lease in Yorba Linda in dollars per square foot per year is $10.96. This represents a 0% increase over the past three months, and also a 0% increase year on year. This is higher than the state ($10.31) area, but lower than the metro ($11.75) area and the county ($12.93) area.
- The index of total number of industrial spaces for lease in the Los Angeles-Long Beach-Yorba Linda 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 industrial properties for lease in the Los Angeles-Long Beach-Yorba Linda 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 industrial space available for lease in the Los Angeles-Long Beach-Yorba Linda area is 29, which is an 8.7% decrease over the past three months, and a 20.8% decrease year on year.