There are numerous advantages to investing in commercial real estate (CRE).
First, it’s a finite investment. There’s a limited amount of land available for development worldwide and it can’t increase. If you own real estate, you’ve invested in a valuable, scarce resource.
Real estate investments also build equity, earn passive income, strengthen professional relationships and provide CRE tax benefits. Nonetheless, many investors face the challenge of identifying the right property type and market that best suits their needs.
The Benefits of Investing in Aliso Viejo Commercial Real Estate
Orange County is a highly desirable market. The county hosts some of the wealthiest individuals in the United States. It’s safe and the location of all properties within the county are considered top-notch. Plus, famous beaches are never too far away!
The city of Aliso Viejo is an increasingly popular market for investors, especially those interested in purchasing an office asset. Here are a few benefits of buying in this area:
The Community is Highly Educated
Education drives markets.
Educated individuals are more likely to have stable jobs, support local businesses, enjoy neighborhood entertainment and pay their CRE and their home rent promptly. Aliso Viejo ranks high in education — over 55% of the community has a BA or higher.
With this in mind, investors are placing their money into CRE assets in Aliso Viejo.
Aliso Viejo is More Affordable Than Surrounding Cities
Pricy cities including Newport Beach, Laguna Beach and Dana Point flank Aliso Viejo. These coastal cities are known for having unaffordable housing for the everyday individuals working within the county lines.
Aliso Viejo has a lower price point for housing with the median rent per month at $1,740 and the median sales home price at $720,950. The high rates in the surrounding areas protect Aliso Viejo from economic downfalls since it closely reflects opportunities for those who make average pay.
The Area Attracts C-Suite Employees
Orange County rental rates are staggeringly high. Newport Beach commercial space rentals can be up to $39.00 per square foot annually in office buildings, driving C-suite employees towards more affordable areas like Aliso Viejo. Investors that own in Aliso Viejo can expect to have the same quality asset with an even slightly higher return.
Major Corporations Have Offices in Aliso Viejo
Aliso Viejo also houses several major corporations, strengthening the surrounding commercial real estate market — UPS, Pacific Life, Ketel One, Pepsi Beverage Company, AND1 and Quest Software all operate in Aliso Viejo.
Together these companies support over 3,000 employees – over 1,000 alone at UPS. It not only stabilizes the office market but supports retail centers, the housing industry and industrial sector.
Development Has Halted
There is no planned development for Aliso Viejo, leaving minimal space available for potential tenants and expanding businesses. Limited supply creates opportunities for investors to maximize their return on properties, ask for favorable lease terms and vet potential tenants to ensure future stability.
Diverse Properties Are Available
Office buildings aren’t the only property type sought by investors in Aliso Viejo.
The demographics and business growth are also driving individuals to acquire assets in the retail, industrial, multi-family and mixed-use sectors.
Retail centers tend to hold strong corporate-backed leases. Already-constructed, large warehouses in the city provide opportunities for industrial companies that otherwise have difficulty finding space in Orange County. And strong household income paired with a growing population improves multi-family investments.
Investing in CRE in Aliso Viejo
Aliso Viejo is relatively new — it wasn’t incorporated until 2001. Since it became an independent city, it has seen consistent economic growth and development, growing to a population of 51,671 (2017).
The overall demographics are favorable for investors. The median age for people living in the city is 37, driving a market of mature, young adults. Schools are award-winning, attracting families nationwide, and year after year the city is ranked one of the safest cities in the nation. In 2009, it was even rated by Forbes.com one of “America’s Top 25 Towns to Live Well.”
If you’re an investor interested in pursuing an opportunity in Aliso Viejo, whether it be an office property or any other investment type, we can help.
At WindWater Real Estate, we specialize in helping investors get into the competitive marketplace of Orange County. We know the value of acquiring assets in cities like Aliso Viejo and can help you strategize if a new asset from this market can help build your portfolio.
Contact us today to get started with your free consultation.