Warehouse with
For Sale
Contact for pricing
1225 Shaffer Rd, Santa Cruz, CA 95060
Secured warehouse unit with roll-up access and enhanced overhead clearance.
Property Size579 SF
Price / SF$751.30
Days on Market86
Property Features for 1225 Shaffer Rd
General Information
Standard status
Active
Size
579 SF
Property subtype
INDUSTRIAL
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Additional Details
Mezzanine
250 SF
Amenities
gated and secure facility
Listing Agency:
Borelli Investment Company
(408) 453-4700
Listed By:
Ralph Borelli · License #00465691
Source:
Moodyscre
Added: Jun 11
Changed: Aug 30
Last Checked: Sep 2 at 12:49AM
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 Borelli Investment Company
Investment Insights
Based on property information with market context.
This 579-square-foot warehouse at 1225 Shaffer Road includes a 12-foot-wide roll-up door and an approximately 250 SF mezzanine. A pop-up roof adds clearance above the mezzanine, while a front hose bib and sewer line beneath the slab provide additional utility features.
The property is within a gated, secure facility in Santa Cruz, approximately 300 feet from Highway 1.
The property is within a gated, secure facility in Santa Cruz, approximately 300 feet from Highway 1.
Key Highlights
- 579 square feet of warehouse space
- 12' wide roll‑up door
- ~250 SF mezzanine with pop‑up roof for additional clearance
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
$14,071
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
3.23%
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%
$281,420
$281.4K
Cap Rate 7%
$201,014
$201.0K
Cap Rate 9%
$156,344
$156.3K
Market Conditions
NOI Build-Up for 579 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
$17.4K $30.00/SF
− Vacancy
−$816 −$1.41/SF
EGI
$16.6K $28.59/SF
− OpEx
−$2.5K −$4.29/SF
NOI
$14.1K $24.30/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
15.00%
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%
$281,420
Cap Rate 7%
$201,014
Cap Rate 9%
$156,344
Alternative Uses
Best Use
Warehouse
$201.0K
$175.9K – $234.5K
NOI $14,071 @ 7.0% cap · market cap 3.23%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$331.1K
$289.7K – $386.3K
NOI $23,175 @ 7.0% cap · market cap 5.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
211
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 95060, CA
47,931
Population
20,181
Households
2.4
Avg Household Size
39
Median Age
55%
College-Educated
94%
High-School Grad
54.5 sq mi
ZIP Area
879
Density / Sq Mi
$106,040
Median Household Income
$46,231
Median Earnings
$2,356
Median Rent
$1,189,300
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?
Warehouse - Secured warehouse unit with roll-up access and enhanced overhead clearance.
Where is this warehouse located?
The property is located at 1225 Shaffer Rd Santa Cruz, CA.
What is the asking price?
The asking price for this property is $435,000.
What are key features of this property?
This property features: 579 square feet of warehouse space; 12' wide roll‑up door; ~250 SF mezzanine with pop‑up roof for additional clearance
