Freestanding Industrial Property in
For Sale
Contact for pricing
Pending
1220 Industrial Avenue, Escondido, CA 92029
Renovated industrial property with office, storage, and solar.
Property Size13,000 SF
Lot Size0.63 Acres
Days on Market96
Property Features for 1220 Industrial Avenue
General Information
Standard status
Pending
Size
13,000 SF
Lot size
0.63 Acres
Property subtype
Office, Industrial
Zoning
M-2
Building Details
Year Built
1971
Year Renovated
2022
Listing Agency:
CEG Advisors
(858) 737-9837
Listed By:
Patrick Geary · License #CA 01703782
Source:
Crexi
Added: May 26
Changed: Aug 14
Last Checked: Aug 14 at 6:08AM
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 CEG Advisors
Investment Insights
Based on property information with market context.
This freestanding industrial property is located in the established industrial corridor of Escondido. The property has a total building area of 13,000 square feet, including a newer 2,000 square foot office build-out and over 1,600 square feet of bonus storage mezzanine. Situated on a 27,443 square foot lot, the property is zoned M-2, which allows for outside storage. The property features a fenced and gated yard. Renovated in 2022, the turnkey space includes a higher-end finished office, a full kitchen, a 34.56 KW owned rooftop solar system, and 600 amps of 3-phase power.
Key Highlights
- Fully renovated in 2022, offering a turnkey space.
- 13,000 SF freestanding industrial building with 2,000 SF of newer, higher‑end finished office space.
- M‑2 zoning allows for outside storage on a 27,443 SF lot.
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
$143,493
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
3.19%
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%
$2,869,860
$2.9M
Cap Rate 7%
$2,049,900
$2.0M
Cap Rate 9%
$1,594,367
$1.6M
Market Conditions
NOI Build-Up for 13,000 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
$218.4K $16.80/SF
− Vacancy
−$13.4K −$1.03/SF
EGI
$205.0K $15.77/SF
− OpEx
−$61.5K −$4.73/SF
NOI
$143.5K $11.04/SF
Area
Escondido, CA
Vacancy
6.14%
Lease Rate
$16.80 /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%
$2,869,860
Cap Rate 7%
$2,049,900
Cap Rate 9%
$1,594,367
Alternative Uses
Best Use
Industrial
$2.05M
$1.79M – $2.39M
NOI $143,493 @ 7.0% cap · market cap 3.19%
Second Best
Flex RnD
$2.03M
$1.78M – $2.37M
NOI $142,214 @ 7.0% cap · market cap 3.16%
Theoretical Best
Office A
$4.59M
$4.02M – $5.35M
NOI $321,235 @ 7.0% cap · market cap 7.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,105
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 92029, CA
21,236
Population
7,976
Households
2.7
Avg Household Size
44
Median Age
47%
College-Educated
91%
High-School Grad
22.6 sq mi
ZIP Area
940
Density / Sq Mi
$120,038
Median Household Income
$60,558
Median Earnings
$2,232
Median Rent
$911,600
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Renovated industrial property with office, storage, and solar.
Where is this flex space located?
The property is located at 1220 Industrial Avenue Escondido, CA.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: Fully renovated in 2022, offering a turnkey space.; 13,000 SF freestanding industrial building with **2,000 SF of newer, higher‑end finished office space**.; M‑2 zoning allows for outside storage on a 27,443 SF lot.
