Building Details

Year Built 1953

Stories 1

Units 1

Tenancy Single

Listing Agency: Zeeb Commercial Real Estate

Listed By: Martin Zeeb SIOR · License #CA 00847045

Source: Crexi

Added: Aug 26, 2025 Changed: Aug 8 Last Checked: Jul 24 at 2:02PM

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Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Zeeb Commercial Real Estate

Investment Insights

Based on property information with market context.

This is a freestanding office building located in central Armona, California. The property is a leased investment with a new 3.5-year lease in place with a long-term tenant. The tenant is planning to make several thousand dollars in upgrades to the building. The building has a private parking lot with 25 spaces. The property contains 2,998 square feet. The property is intended for use as an office building.

Key Highlights

• New 3 1/2yr lease with long term Tenant
• Leased Investment free standing office building
• Tenant is planning on doing several thousands in upgrades to the building

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

$40,959

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

6.75%

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%

$819,180 $819.2K

Cap Rate 7%

$585,129 $585.1K

Cap Rate 9%

$455,100 $455.1K

Market Conditions

NOI Build-Up for 2,998 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

$72.0K $24.00/SF

− Vacancy

−$17.3K −$5.78/SF

EGI

$54.6K $18.22/SF

− OpEx

−$13.7K −$4.55/SF

NOI

$41.0K $13.66/SF

Area

Kings County, CA

Vacancy

24.10%

Lease Rate

$24.00 /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%

$819,180

Cap Rate 7%

$585,129

Cap Rate 9%

$455,100

Alternative Uses

Best Use

Office B

$585.1K

$512.0K – $682.7K (±1% cap)

NOI $40,959 @ 7.0% cap · market cap 6.75%

Second Best

—

—

no second resolved use

Theoretical Best

Healthcare Medical

$947.2K

$828.8K – $1.11M (±1% cap)

NOI $66,303 @ 7.0% cap · market cap 10.92%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Kings County Commission ... Government Office COMMISSION ON AGING/ SENIOR ... Community Center

Suggested Use

Top Pick Parking Lot & Garage Garden Center Kitchen & Bath Showroom Bakery HVAC Service Carpet & Flooring Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

180

Businesses Nearby

Explore this area Business Placement

Demographics for 93202, CA

4,154

Population

1,119

Households

3.7

Avg Household Size

32

Median Age

8%

College-Educated

64%

High-School Grad

1.5 sq mi

ZIP Area

2,769

Density / Sq Mi

$60,450

Median Household Income

$30,781

Median Earnings

$1,282

Median Rent

$263,000

Median Home Value

Market

Vacancy Rate% for Office in West region

11% 2019

14.1% 2020

15.5% 2021

17.2% 2022

19.9% 2023

21% 2024

20.8% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Office building - Leased freestanding office building with long-term tenant in Armona, CA.

Where is this office building located?

The property is located at 10953 14th Ave. Armona, CA.

What is the asking price?

The asking price for this property is $607,000.

What are key features of this property?

This property features: New 3 1/2yr lease with long term Tenant; Leased Investment free standing office building; Tenant is planning on doing several thousands in upgrades to the building