Two-Story Office Building For
For Sale
$4,025,000
27 Orchard Road, Lake Forest, CA 92630
10,098 SF office building with flexible occupancy options.
Property Size10,098 SF
Price / SF$398.59
Days on Market266
Property Features for 27 Orchard Road
General Information
Standard status
Active
Size
10,098 SF
Class
B
Property subtype
Office
Building Details
Building Size
10,098 SF
Year Built
2001
Listing Agency:
Lee & Associates - Irvine
(949) 790-3140
Listed By:
Travis Watts · License #CalDRE #01927498
Source:
Lee-associates
Added: Nov 26, 2025
Changed: Aug 9
Last Checked: Aug 19 at 5:40AM
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 Lee & Associates - Irvine
Investment Insights
Based on property information with market context.
This is a 10,098 square foot two-story free-standing office building that is divisible, offering flexible occupancy options and potential for dual or multi-tenant scenarios. Constructed in 2001 and renovated in 2011 and 2020, the building features modern architecture. The layout includes a mix of perimeter offices, a conference room, a reception area, a kitchen/lounge, restrooms, and an open area. Building top signage provides company identity and visibility. Surface parking is available at a ratio of 4 spaces per 1,000 square feet, including four reserved visitor parking stalls. The property is located close to numerous restaurants and other retail amenities, and is situated near new residential developments such as Great Park, Baker Ranch, and The Meadows. It offers immediate access to South Orange County’s major freeways and toll roads. This property presents an opportunity for an owner/user or as an investment. It can be delivered vacant at the close of escrow or with rental income in place from month-to-month tenants. The seller would consider a short- or long-term seller leaseback. The building is equipped with solar panels that substantially reduce electrical costs, and the system is fully paid off.
Key Highlights
- Free‑standing office building with flexible occupancy, offering dual/multi‑tenant potential.
- Modern architecture & newer construction, built in 2001 and renovated in 2011 & 2020.
- Equipped with fully paid off solar panels, substantially reducing electrical costs.
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
$198,575
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
4.93%
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%
$3,971,500
$4.0M
Cap Rate 7%
$2,836,786
$2.8M
Cap Rate 9%
$2,206,389
$2.2M
Market Conditions
NOI Build-Up for 10,098 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
$301.7K $29.88/SF
− Vacancy
−$37.0K −$3.66/SF
EGI
$264.8K $26.22/SF
− OpEx
−$66.2K −$6.55/SF
NOI
$198.6K $19.66/SF
Area
Orange County, CA
Vacancy
12.25%
Lease Rate
$29.88 /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%
$3,971,500
Cap Rate 7%
$2,836,786
Cap Rate 9%
$2,206,389
Alternative Uses
Best Use
Office B
$2.84M
$2.48M – $3.31M
NOI $198,575 @ 7.0% cap · market cap 4.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.39M
$2.97M – $3.96M
NOI $237,420 @ 7.0% cap · market cap 5.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
649
Businesses Nearby
Explore this area
Business Placement
Demographics for 92630, CA
66,359
Population
24,390
Households
2.7
Avg Household Size
40
Median Age
47%
College-Educated
93%
High-School Grad
10.5 sq mi
ZIP Area
6,320
Density / Sq Mi
$119,984
Median Household Income
$57,277
Median Earnings
$2,614
Median Rent
$858,900
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 building - 10,098 SF office building with flexible occupancy options.
Where is this office building located?
The property is located at 27 Orchard Road Lake Forest, CA.
What is the asking price?
The asking price for this property is $4,025,000.
What are key features of this property?
This property features: Free‑standing office building with flexible occupancy, offering dual/multi‑tenant potential.; Modern architecture & newer construction, built in 2001 and renovated in 2011 & 2020.; Equipped with fully paid off solar panels, substantially reducing electrical costs.
