Santa Fe Live/Work Investment
For Sale
$261,000
3600 Cerrillos Road, Santa Fe, NM 87507
CommercialSale, Santa Fe, NM
Property Size1,332 SF
Price / SF$195.95
Days on Market347
Property Features for 3600 Cerrillos Road
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
C-2
Subdivision
Lofts at Cerrillos
Directions
South on Cerrillos Road to The Lofts on Cerrillos
Standard status
Active
APN
910000931
Size
1,332 SF
Utilities
Water source
Public
Building Details
Year built
1995
Listing Agency:
Shepler Commercial, LLC
(505) 982-7600
Listed By:
John Shepler · License #8936
(505) 660-5650
Added: Sep 15, 2025
Changed: Aug 19
Last Checked: Aug 27 at 3:06AM
MLS# 202503491
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.
Investment Insights
Based on property information with market context.
Located in Santa Fe, this property is situated within a development known for its live/work spaces. The unit is currently configured as an investment property with four tenants, each occupying their own office. The current net operating income is approximately $12,263, excluding utilities. Market data suggests a potential monthly lease rate of around $600 per office. The property's expenses, including taxes, insurance, and HOA fees, total approximately $10,537. The existing leases are structured on a month-to-month basis, offering flexibility for a new owner to either continue leasing to the current tenants or utilize the space for their own purposes. The unit is an end-cap location within the development, which provides ample parking. The property is zoned C-2 and has a size of 1332 square feet.
Key Highlights
- Investment property with existing tenants and current NOI of approximately $12,263 plus utilities.
- Potential to increase rental income; market suggests each office could lease for $600/month minimum.
- Flexibility to occupy the unit for live/work or other purposes due to month‑to‑month leases.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$18,342
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.03%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$366,840
$366.8K
Cap Rate 7%
$262,029
$262.0K
Cap Rate 9%
$203,800
$203.8K
Market Conditions
NOI Build-Up for 1,332 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$28.8K $21.60/SF
− Vacancy
−$4.3K −$3.24/SF
EGI
$24.5K $18.36/SF
− OpEx
−$6.1K −$4.59/SF
NOI
$18.3K $13.77/SF
Area
Santa Fe County, NM
Vacancy
15.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$366,840
Cap Rate 7%
$262,029
Cap Rate 9%
$203,800
Alternative Uses
Best Use
Office B
$262.0K
$229.3K – $305.7K
NOI $18,342 @ 7.0% cap · market cap 7.03%
Second Best
Mixed Use
$177.1K
$154.9K – $206.6K
NOI $12,394 @ 7.0% cap · market cap 4.75%
Theoretical Best
Office A
$361.7K
$316.5K – $422.0K
NOI $25,319 @ 7.0% cap · market cap 9.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
942
Businesses Nearby
Explore this area
Business Placement
Demographics for 87507, NM
51,338
Population
21,272
Households
2.4
Avg Household Size
38
Median Age
31%
College-Educated
86%
High-School Grad
96.1 sq mi
ZIP Area
534
Density / Sq Mi
$62,955
Median Household Income
$34,102
Median Earnings
$1,276
Median Rent
$333,300
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Live-work space - Ground floor unit with tenants, ideal for live/work or investment.
Where is this live-work space located?
The property is located at 3600 Cerrillos Road Santa Fe, NM.
What is the asking price?
The asking price for this property is $261,000.
What are key features of this property?
This property features: Investment property with existing tenants and current NOI of approximately $12,263 plus utilities.; Potential to increase rental income; market suggests each office could lease for $600/month minimum.; Flexibility to occupy the unit for live/work or other purposes due to month‑to‑month leases.
