Turnkey Office Condo
For Sale
$995,000
125 Hangar Way, Watsonville, CA 95076
Move-in-ready office condo with reception, private offices, conference room, kitchen, and dedicated server/storage room.
Property Size2,256 SF
Price / SF$441.05
Days on Market72
Property Features for 125 Hangar Way
General Information
Standard status
Active
Size
2,256 SF
Property subtype
Commercial/Industrial
Additional Details
Business Included
Yes
Highway Access
Yes
Sprinkler System
Yes
Office Units
3
Building Details
Year Built
2007
Listing Agency:
Coldwell Banker Realty
(831) 234-1416
Listed By:
Sean Pate · License #01160202
(831) 234-1416
Source:
Exitrealty
Added: Jun 1
Changed: Aug 8
Last Checked: Aug 10 at 2:42AM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
This move-in-ready office condo suite is designed for a professional day-one operation. The interior includes a reception area that leads into a workspace balancing privacy and collaboration, along with three private offices and a dedicated support staff area. Multiple workstations are included, and a large conference room supports meetings and presentations. For employee convenience, the suite offers a full kitchen or break room and two bathrooms. A dedicated server/storage room is in place for technical needs. The building systems include fire sprinklers, a fire alarm, and a security system.
Located in Watsonville’s primary business corridor at 125 Hangar Way, the property provides immediate access to Highway 1 for both employee commute and client navigation.
This configuration is well suited for professional services and office-based teams that need private working rooms, a dedicated meeting space, and on-site support and technology functions. With reception, conference, kitchen/break, and server/storage already established, the suite is positioned for straightforward occupancy without the delays associated with new build-out work.
Located in Watsonville’s primary business corridor at 125 Hangar Way, the property provides immediate access to Highway 1 for both employee commute and client navigation.
This configuration is well suited for professional services and office-based teams that need private working rooms, a dedicated meeting space, and on-site support and technology functions. With reception, conference, kitchen/break, and server/storage already established, the suite is positioned for straightforward occupancy without the delays associated with new build-out work.
Key Highlights
- 2007‑built move‑in‑ready office condo suite with reception area and functional office layout
- Includes 3 private offices plus a specialized support staff area and multiple workstations
- Large conference room for meetings and presentations
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
$55,430
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
5.57%
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%
$1,108,600
$1.1M
Cap Rate 7%
$791,857
$791.9K
Cap Rate 9%
$615,889
$615.9K
Market Conditions
NOI Build-Up for 2,256 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
$94.8K $42.00/SF
− Vacancy
−$20.8K −$9.24/SF
EGI
$73.9K $32.76/SF
− OpEx
−$18.5K −$8.19/SF
NOI
$55.4K $24.57/SF
Area
Santa Cruz County, CA
Vacancy
22.00%
Lease Rate
$42.00 /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%
$1,108,600
Cap Rate 7%
$791,857
Cap Rate 9%
$615,889
Alternative Uses
Best Use
Office B
$791.9K
$692.9K – $923.8K
NOI $55,430 @ 7.0% cap · market cap 5.57%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$1.29M
$1.13M – $1.50M
NOI $90,299 @ 7.0% cap · market cap 9.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
Turnkey business
Opportunity
Yes
Sprinkler system
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
849
Businesses Nearby
Explore this area
Business Placement
Demographics for 95076, CA
84,433
Population
26,488
Households
3.2
Avg Household Size
35
Median Age
19%
College-Educated
72%
High-School Grad
135.1 sq mi
ZIP Area
625
Density / Sq Mi
$86,685
Median Household Income
$36,077
Median Earnings
$1,851
Median Rent
$767,200
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Move-in-ready office condo with reception, private offices, conference room, kitchen, and dedicated server/storage room.
Where is this office units located?
The property is located at 125 Hangar Way Watsonville, CA.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: 2007‑built move‑in‑ready office condo suite with reception area and functional office layout; Includes 3 private offices plus a specialized support staff area and multiple workstations; Large conference room for meetings and presentations
