Iconic Restaurant Building in
For Sale
$895,000
815 Palm Street, San Luis Obispo, CA 93401
Two-story restaurant property in the heart of downtown San Luis Obispo.
Property Size2,078 SF
Price / SF$430.70
Days on Market481
Property Features for 815 Palm Street
General Information
Standard status
Active
Size
2,078 SF
Property subtype
Retail
Amenities
3
Building Details
Year Built
1958
Listing Agency:
Anderson & Senn Commercial Real Estate
(805) 543-1400
Listed By:
Derek Senn · License #01252131
(805) 801-7352
Source:
Xome
Added: May 11, 2025
Changed: Sep 3
Last Checked: Sep 2 at 9:22PM
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 Anderson & Senn Commercial Real Estate
Investment Insights
Based on property information with market context.
This iconic two-story structure, located in San Luis Obispo’s Chinatown and adjacent to the Palm Theatre, is currently outfitted as a restaurant. Situated in the heart of downtown San Luis Obispo, the property is located near Hotel SLO and steps from Mission Plaza. A large parking garage is located directly across from the building. The property offers 2,078 square feet of space. This location presents an opportunity to own a piece of San Luis Obispo history.
Key Highlights
- Prime downtown San Luis Obispo location, steps from Mission Plaza and near Hotel SLO.
- Situated in SLO's Chinatown, adjacent to the Palm Theatre.
- Currently outfitted as a restaurant.
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
$33,758
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
3.77%
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%
$675,160
$675.2K
Cap Rate 7%
$482,257
$482.3K
Cap Rate 9%
$375,089
$375.1K
Market Conditions
NOI Build-Up for 2,078 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
$49.9K $24.00/SF
− Vacancy
−$1.6K −$0.79/SF
EGI
$48.2K $23.21/SF
− OpEx
−$14.5K −$6.96/SF
NOI
$33.8K $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%
$675,160
Cap Rate 7%
$482,257
Cap Rate 9%
$375,089
Alternative Uses
Best Use
Retail
$482.3K
$422.0K – $562.6K
NOI $33,758 @ 7.0% cap · market cap 3.77%
Second Best
Specialty Retail
$424.8K
$371.7K – $495.6K
NOI $29,733 @ 7.0% cap · market cap 3.32%
Theoretical Best
Healthcare Medical
$817.2K
$715.1K – $953.5K
NOI $57,207 @ 7.0% cap · market cap 6.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,646
Businesses Nearby
Under-served
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Tap Truck SLO — 1974 Jennifer St, San Luis Obispo, CA 93401
- Gold Land BBQ — 570 Higuera St #135, San Luis Obispo, CA 93401
- Chefs Table Catering — 1244 Johnson Ave Suite 127, San Luis Obispo, CA 93401
- Splash Cafe Gourmet Catering — 1491 monterey st, san luis obispo, ca 93401
Frequently Asked Questions
What type of property is this?
Restaurant - Two-story restaurant property in the heart of downtown San Luis Obispo.
Where is this restaurant located?
The property is located at 815 Palm Street San Luis Obispo, CA.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: Prime downtown San Luis Obispo location, steps from Mission Plaza and near Hotel SLO.; Situated in SLO's Chinatown, adjacent to the Palm Theatre.; Currently outfitted as a restaurant.
