Downtown Santa Fe Office
For Sale
$180,000
227 E Palace Ave Unit F, Santa Fe, NM 87501
Office condo in downtown Santa Fe with two parking spaces.
Property Size487 SF
Price / SF$369.61
Days on Market284
Property Features for 227 E Palace Ave Unit F
General Information
Standard status
Active
Size
487 SF
Class
C
Property subtype
Office
Building Details
Building Size
487 SF
Year Built
1948
Listing Agency:
SVN | Rich Investment Real Estate Partners Los Angeles
(310) 892-6892
Listed By:
Shiva Monify · License #CalDRE #01728143
(310) 892-6892
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 8
Last Checked: Aug 31 at 3:12PM
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 | Rich Investment Real Estate Partners Los Angeles
Investment Insights
Based on property information with market context.
This office/commercial condominium, situated on 0.89 acres, features a 487 square foot building. It is part of the Kruger Commercial Condominium project, which totals 12,621 square feet and includes 22 units and 46 parking spaces. The property is located near downtown Santa Fe. The current layout includes two private offices at the back, an open reception area at the front, a small kitchenette, and a private restroom. The suite benefits from natural light and offers storage space. The HOA fee is $539.20. The property includes two dedicated parking spaces in the on-site lot, as well as customer parking. It is located within walking distance of all amenities.
Key Highlights
- Excellent Downtown Santa Fe Location: Walking distance to amenities.
- Two Dedicated Parking Spaces: Plus ample customer parking.
- Abundant Natural Light and Storage: Enhances office functionality.
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
$6,706
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
3.73%
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%
$134,120
$134.1K
Cap Rate 7%
$95,800
$95.8K
Cap Rate 9%
$74,511
$74.5K
Market Conditions
NOI Build-Up for 487 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
$10.5K $21.60/SF
− Vacancy
−$1.6K −$3.24/SF
EGI
$8.9K $18.36/SF
− OpEx
−$2.2K −$4.59/SF
NOI
$6.7K $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%
$134,120
Cap Rate 7%
$95,800
Cap Rate 9%
$74,511
Alternative Uses
Best Use
Office B
$95.8K
$83.8K – $111.8K
NOI $6,706 @ 7.0% cap · market cap 3.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$132.2K
$115.7K – $154.3K
NOI $9,257 @ 7.0% cap · market cap 5.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,050
Businesses Nearby
Explore this area
Business Placement
Demographics for 87501, NM
15,116
Population
10,480
Households
1.4
Avg Household Size
58
Median Age
61%
College-Educated
97%
High-School Grad
50.6 sq mi
ZIP Area
299
Density / Sq Mi
$81,229
Median Household Income
$52,851
Median Earnings
$1,516
Median Rent
$649,100
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?
Office units - Office condo in downtown Santa Fe with two parking spaces.
Where is this office units located?
The property is located at 227 E Palace Ave Unit F Santa Fe, NM.
What is the asking price?
The asking price for this property is $180,000.
What are key features of this property?
This property features: Excellent Downtown Santa Fe Location: Walking distance to amenities.; Two Dedicated Parking Spaces: Plus ample customer parking.; Abundant Natural Light and Storage: Enhances office functionality.
