4 Reasons WHY You Should Buy CRE in Aliso Viejo, CA
Due to the ongoing advancement in technology, owning real estate in markets across the country has been made simpler than ever. No longer are investors limited to properties within immediate reach, but instead, they can search the states for a property that best suits their investment criteria.
As a result, investors have flocked to markets such as Orange County – A market diversified by innovation, technology, and financial services. However, with 34 cities spanning across 948 square miles, many investors question Which city is best to invest in? The answer: It depends. Each city offers unique opportunities with ranging returns. For those looking for secure investments with competitive returns, consider Aliso Viejo!
Benefits of Investing in Aliso Viejo
Aliso Viejo is a “master planned community that was developed to contain a balance between residential neighborhoods, community parks, facilities and schools as well as an appropriate mix of business, office and retail uses.” It boasts multiple benefits to real estate investors! Here are a few:
1- Affordability: Compared to surrounding areas, Aliso Viejo is more affordable.
Orange County is known for its luxury living. Cities such as Newport Beach, San Clemente, and Laguna Beach host unaffordable housing for the average resident. In fact, rent in specific areas can reach $2.91 per square foot (Laguna Beach), while buying can put a buyer back millions. The average sales price for a home in Newport Beach is $2.4 million.
The reality is that not everyone can afford this extravagant lifestyle, and Aliso Viejo offers this majority a place to reside. The average rent per square foot in Aliso Viejo is $2.25, and average home sales are $656,360 – A significant reduction compared to its neighboring cities.
In addition, office, retail, and industrial tenants find Aliso Viejo more affordable. Many tenants have transitioned from coastal cities, including Newport Beach and Dana Point, to inland cities such as Aliso Viejo.
This is a direct result of the high rents offered in coastal towns. For example, Newport Beach office rates can surge up to $60 per square foot annually, while tenants in Aliso Viejo can anticipate paying between $15 to $30 per square foot.
Aliso Viejo’s affordability is pulling C-suite employees from the surrounding market, providing landlords lower vacancy rates on their assets. As a result, landlords owning commercial real estate in Aliso Viejo find themselves more protected from economic downfalls.
2- Education: Aliso Viejo promotes education and even has a university in town!
Education drives job growth, which helps improve market conditions. Employed individuals can afford rent and promote business growth via spending in the community – They are often found enjoying their neighborhood events. Therefore, investors should seek a community dominated by educated individuals to ensure that economic activity remains high at all times.
Recent reports have concluded that 56% of Aliso Viejo residents hold a bachelor’s degree or higher. Nationwide, only 33% of Americans meet this criterion. This fact is not one to be overlooked.
In fact, Aliso Viejo is even home to its own university – Soka University. This liberal arts college promotes an education that “cultivates global citizens and critical thinkers ready to provide leadership in a rapidly changing world.”
Aliso Viejo’s focus on education brings both economic security and diversity to the community.
3- Limited Development Opportunities Drive Values
Aliso Viejo was founded in 2001 and has since seen consistent economic growth and development. However, its small size has limited ongoing expansion; as of 2020, no additional development was planned in the city. Limited space has aided investors to drive rents due to the minimal space available for potential tenants and growing businesses.
Those who own in Aliso Viejo are privy to favorable lease terms and a maximum return on their investment.
4- All Asset Types are Competitive
Retail, industrial, office, and multifamily assets all offer their own benefits and risks, but in Aliso Viejo, they all have all remained strong through the years. Already developed industrial properties have provided opportunities for tenant’s immediate move-in; retail centers have focused on securing strong corporate leases; a healthy household income and growing population has kept multifamily vacancies low; and, the presence of many major corporations in office space has kept the sector competitive. In all, the city offers stability and financial strength to all investors.
How YOU Can Invest in Aliso Viejo Real Estate TODAY
Our team recently closed on Pacific Terrace – a $7 million office building located off Columbia. Representing the buyer, we negotiated the purchase price down to $180 per square foot – the lower cost per square foot of an office building sold in Aliso Viejo over the last five years!
Now is the time to get in. If you are interested in learning more about your prospects in Aliso Viejo, reach out to us today. We can assess how you can improve your position whether you are an investor, tenant, or interested in an owner-user opportunity.