Los Lunas Warehouse For
For Sale
$1,350,000
111 Lujan Rd. SE, Los Lunas, NM 87031
Stand-alone warehouse in Los Lunas, NM, with established tenant.
Property Size8,200 SF
Price / SF$164.63
Days on Market274
Property Features for 111 Lujan Rd. SE
General Information
Standard status
Active
Size
8,200 SF
Property subtype
Industrial
Building Details
Building Size
8,200 SF
Listing Agency:
SVN | Walt Arnold Commercial Brokerage, Inc.
(505) 385-4744
Listed By:
Paul Cook · License #NM #13024
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 20
Last Checked: Aug 21 at 4:18AM
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 SVN | Walt Arnold Commercial Brokerage, Inc.
Investment Insights
Based on property information with market context.
This stand-alone office/warehouse is located in Los Lunas, New Mexico. The property is occupied by a family-owned cannabis grow and dispensary owner and operator with over 20 years of experience, based in Washington State, with 10 dispensaries in Arizona, and a presence in multiple states. The tenant has 4 years remaining on the lease with annual increases. The property is situated on the east side of Los Lunas, a short drive south from Albuquerque on I-25. The property size is 8200 square feet. The current CAP Rate is 6.77% for 2024, with a blended CAP Rate of 7.85%.
Key Highlights
- Established cannabis grow and dispensary tenant with 20+ years of experience.
- Tenant has multiple dispensaries and operates in multiple states.
- Enjoy a 6.77% CAP Rate in 2024.
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
$55,913
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
4.14%
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%
$1,118,260
$1.1M
Cap Rate 7%
$798,757
$798.8K
Cap Rate 9%
$621,256
$621.3K
Market Conditions
NOI Build-Up for 8,200 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
$68.9K $8.40/SF
− Vacancy
−$3.1K −$0.38/SF
EGI
$65.8K $8.02/SF
− OpEx
−$9.9K −$1.20/SF
NOI
$55.9K $6.82/SF
Area
Valencia County, NM
Vacancy
4.50%
Lease Rate
$8.40 /SF/Yr
Expense Ratio
15.00%
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%
$1,118,260
Cap Rate 7%
$798,757
Cap Rate 9%
$621,256
Alternative Uses
Best Use
Warehouse
$798.8K
$698.9K – $931.9K
NOI $55,913 @ 7.0% cap · market cap 4.14%
Second Best
Industrial
$701.1K
$613.5K – $818.0K
NOI $49,077 @ 7.0% cap · market cap 3.64%
Theoretical Best
Office A
$1.70M
$1.48M – $1.98M
NOI $118,690 @ 7.0% cap · market cap 8.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
378
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 87031, NM
45,208
Population
16,917
Households
2.7
Avg Household Size
37
Median Age
21%
College-Educated
85%
High-School Grad
255.5 sq mi
ZIP Area
177
Density / Sq Mi
$61,947
Median Household Income
$34,167
Median Earnings
$1,083
Median Rent
$206,600
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Stand-alone warehouse in Los Lunas, NM, with established tenant.
Where is this warehouse located?
The property is located at 111 Lujan Rd. SE Los Lunas, NM.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Established cannabis grow and dispensary tenant with 20+ years of experience.; Tenant has multiple dispensaries and operates in multiple states.; Enjoy a 6.77% CAP Rate in 2024.
