Denver Flex Space Investment
For Sale
$750,000
Location 822 & 824 E 78th Avenue, Denver, CO 80229
3,750 sq. ft. Office: ~1,000 SF | Warehouse: ~2,750 SF For Sale
Property Size3,750 SF
Lot Size0.09 Acres
Price / SF$200
Days on Market575
Property Features for Location 822 & 824 E 78th Avenue
General Information
Standard status
Active
Property type
Flex space, Warehouses, Office Units, Industrial properties, Office Spaces
Size
3,750 SF
Elevators
N/A
Lot size
0.09 Acres
Building Details
Buildings
1
Stories
1
Listing Agency:
(303) 596-4091
Listed By:
Paul
(303) 596-4091
Added: Jan 31, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
Located at 822 & 824 E 78th Avenue in Denver, Colorado, this property offers a combined 3,750 square feet of flex space suitable for a variety of businesses. The property includes two units. One unit provides approximately 1,000 square feet of office space, featuring a reception/waiting area, an open work area suitable for 4-6 employees, a kitchen, and a restroom. The other unit offers approximately 2,750 square feet of warehouse space, ideal for warehouse and light assembly operations. This warehouse component features 22-foot ceilings and a 14-foot drive-in door for efficient loading and unloading. The property is situated on a 0.086-acre lot. The combination of office and warehouse space makes this property adaptable to diverse business needs.
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
$45,704
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
6.09%
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%
$914,080
$914.1K
Cap Rate 7%
$652,914
$652.9K
Cap Rate 9%
$507,822
$507.8K
Market Conditions
NOI Build-Up for 3,750 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
$82.4K $21.96/SF
− Vacancy
−$21.4K −$5.71/SF
EGI
$60.9K $16.25/SF
− OpEx
−$15.2K −$4.06/SF
NOI
$45.7K $12.19/SF
Area
ZIP 80229
Vacancy
26.00%
Lease Rate
$21.96 /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%
$914,080
Cap Rate 7%
$652,914
Cap Rate 9%
$507,822
Alternative Uses
Best Use
Office B
$652.9K
$571.3K – $761.7K
NOI $45,704 @ 7.0% cap · market cap 6.09%
Second Best
Flex RnD
$576.6K
$504.6K – $672.8K
NOI $40,365 @ 7.0% cap · market cap 5.38%
Theoretical Best
Office A
$1.14M
$996.0K – $1.33M
NOI $79,683 @ 7.0% cap · market cap 10.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
306
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 80229, CO
54,153
Population
20,130
Households
2.7
Avg Household Size
33
Median Age
20%
College-Educated
79%
High-School Grad
12.5 sq mi
ZIP Area
4,332
Density / Sq Mi
$83,450
Median Household Income
$42,198
Median Earnings
$1,719
Median Rent
$382,900
Median Home Value
Market
Vacancy Rate% for Office in Denver, CO
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - 3,750 sq. ft. Office: ~1,000 SF | Warehouse: ~2,750 SF For Sale
Where is this flex space located?
The property is located at Location 822 & 824 E 78th Avenue Denver, CO.
What is the asking price?
The asking price for this property is $750,000.
