Two-Tenant Storefront
For Sale
$2,000,000
1127 Broad, San Luis Obispo, CA 93401
The building contains two occupied suites with NNN lease structures in downtown San Luis Obispo.
Property Size3,718 SF
Price / SF$537.92
Days on Market10
Property Features for 1127 Broad
General Information
Standard status
Active
Size
3,718 SF
Property subtype
Retail
Occupancy
100%
Amenities
Rectangular, Level
Level, Rectangular.
Building Details
Year Built
1910
Tenancy
Multi
Listing Agency:
Acquire Mortgage & Real Estate
(805) 544-5626
Listed By:
Levi Seligman · License #01936432
Source:
Xome
Added: Aug 1
Changed: Aug 9
Last Checked: Aug 10 at 3:06AM
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 Acquire Mortgage & Real Estate
Investment Insights
Based on property information with market context.
Located at 1127 Broad in downtown San Luis Obispo, this 3,718-square-foot commercial property contains two occupied storefront suites. Both suites are subject to NNN leases, providing a defined lease structure across the two-tenant configuration.
Built in 1910, the property has a rectangular, level form and fronts Broad Street within the downtown area. The location is described as having visibility to both pedestrians and vehicles, with restaurants, shopping, hotels, nightlife, and entertainment nearby. Four adjacent properties are also available for sale, creating an additional assemblage consideration for a purchaser evaluating the surrounding holdings.
Built in 1910, the property has a rectangular, level form and fronts Broad Street within the downtown area. The location is described as having visibility to both pedestrians and vehicles, with restaurants, shopping, hotels, nightlife, and entertainment nearby. Four adjacent properties are also available for sale, creating an additional assemblage consideration for a purchaser evaluating the surrounding holdings.
Key Highlights
- 3,718‑square‑foot storefront property at 1127 Broad
- Two occupied storefront suites
- NNN leases in place for both tenant spaces
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
$60,401
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
3.02%
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%
$1,208,020
$1.2M
Cap Rate 7%
$862,871
$862.9K
Cap Rate 9%
$671,122
$671.1K
Market Conditions
NOI Build-Up for 3,718 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
$89.2K $24.00/SF
− Vacancy
−$2.9K −$0.79/SF
EGI
$86.3K $23.21/SF
− OpEx
−$25.9K −$6.96/SF
NOI
$60.4K $16.25/SF
Area
San Luis Obispo County, CA
Vacancy
3.30%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
30.00%
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%
$1,208,020
Cap Rate 7%
$862,871
Cap Rate 9%
$671,122
Alternative Uses
Best Use
Retail
$862.9K
$755.0K – $1.01M
NOI $60,401 @ 7.0% cap · market cap 3.02%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$1.46M
$1.28M – $1.71M
NOI $102,356 @ 7.0% cap · market cap 5.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,613
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 93401, CA
29,877
Population
14,363
Households
2.1
Avg Household Size
39
Median Age
57%
College-Educated
96%
High-School Grad
64.2 sq mi
ZIP Area
465
Density / Sq Mi
$95,386
Median Household Income
$47,898
Median Earnings
$1,859
Median Rent
$943,500
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - The building contains two occupied suites with NNN lease structures in downtown San Luis Obispo.
Where is this storefront property located?
The property is located at 1127 Broad San Luis Obispo, CA.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: 3,718‑square‑foot storefront property at 1127 Broad; Two occupied storefront suites; NNN leases in place for both tenant spaces
