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    Santa Fe Commercial Space Available Title is generated by Realmo AI

    135 Palace, Santa Fe, NM 87501

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    COMMERCIAL - Santa Fe, NM

    Type:Retail
    Property size:
    21,561 SF
    Lot size:
    0.26 Acres
    Added:
    Oct 3, 2019
    Days on Market:
    2438
    Last Refresh:
    Jun 5 at 12:06 pm

    Property Features for 135 Palace

    General Information

    Property type
    Commercial Lease
    Property subtype
    Retail
    Zoning
    BCD
    Parking features
    On Street
    Accessibility
    Accessible Approach with Ramp
    Standard status
    Active
    APN
    10473600
    Size
    21,561 SF
    Lot size
    0.26 Acres

    Utilities

    Sewer type
    Public Sewer
    Heating system
    Natural Gas
    Water source
    Public

    Building Details

    Year built
    1988
    Flooring type
    Concrete
    Building materials
    Frame, MetalSiding, Concrete
    Roof type
    Flat

    We can help!

    Listing Contact
    John Shepler

    Listing agent John Shepler License #8936

    Listing office Shepler Commercial, LLC 301 N Guadalupe, Suite 205, Santa Fe, NM

    Listing date Oct 3, 2019

    MLS# 201904546

    Copyright © 2026 Santa Fe Association of REALTORS®, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

    HighLights

    • Highly visible corner location at Palace and Grant Avenues, near Santa Fe Plaza.
    • Next door to the new $75M Georgia O'Keeffe Museum.
    • Entire third floor leased to a restaurant (Jan 2026).
    • Versatile building suitable for galleries, retail, restaurants, and nightclubs.
    • Three suites available on the second level.
    • Accessibility features including an accessible approach with ramp.

    Overview

    The Palace Court Building, constructed in 1988, is located at 135 W. Palace Avenue in Santa Fe, New Mexico. Situated on a corner location at Palace and Grant Avenues, the property is a couple of blocks west of the Santa Fe Plaza and next door to the Georgia O'Keeffe Museum, which is currently under construction. The building has a total size of 21561 square feet and sits on a 0.26-acre lot. Historically, the first and second floors have housed galleries and other retailers, while the third floor has been occupied by restaurants and nightclubs. There are three suites available on the second level, measuring 1389 sq ft, 1314 sq ft, and 720 sq ft. The entire third floor has been leased to a restaurant, with occupancy scheduled for January 2026. The property is zoned BCD.
    Property Profile Location Intelligence

    Current Use by Public Records

    Fiesta Oaxaca Restaurant New Mexico Association ... Charitable Organization Tumbleroot Pottery Pub Bar & Pub FedEx Drop Box Postal Service GemStone Art at Xanadu ... Art Gallery

    Suggested Use

    Restaurant Real Estate Agency Law Firm Spa & Massage Center Dental Office Hair Salon Nail Salon Building Supply Auto Repair Shop Gym & Fitness Center

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Santa Fe
    County
    Santa Fe
    State
    New Mexico
    Longitude
    -105.9402915
    Latitude
    35.6885122

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    FAQs

    What type of property is this?
    Specialty property - Prime commercial spaces for lease in Santa Fe, New Mexico.
    Where is this specialty property located?
    The property is located at 135 Palace Santa Fe, NM.
    What are key features of this property?
    This property features: Highly visible corner location at Palace and Grant Avenues, near Santa Fe Plaza.; Next door to the new $75M Georgia O'Keeffe Museum.; Entire third floor leased to a restaurant (Jan 2026).
    (505) 660-5650
    We can help!
    Listing Contact
    John Shepler
    Real Estate License ID: 8936
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

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