1600 SF Commercial
For Sale
Contact for pricing
2005 N LEE Avenue, Farmington, NM 87401
Commercial building with fenced storage yard and upgraded electric.
Property Size1,600 SF
Price / SF$156.18
Days on Market616
Property Features for 2005 N LEE Avenue
General Information
Standard status
Active
Size
1,600 SF
Property subtype
Special Purpose, Land
Listing Agency:
Coldwell Banker Cornerstone Realty
(970) 660-5323
Listed By:
Rick Mace · License #NM
Source:
Crexi
Added: Dec 20, 2024
Changed: Aug 16
Last Checked: Aug 26 at 2:32PM
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 Cornerstone Realty
Investment Insights
Based on property information with market context.
This 1600 sq.ft. block building features a large, fenced storage yard, upgraded electric, and some solar installations. The property includes a large office and storage area, along with handicapped-sized bathrooms and newer refrigerated air. A customer parking area is available. The building was previously used by an electrical service company and may be suitable for recreational use.
Key Highlights
- Large, fenced storage yard provides security and ample space.
- Upgraded electric ensures sufficient power for various needs.
- 1600 sq.ft. block building offers durability and functionality.
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
$9,821
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
3.93%
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%
$196,420
$196.4K
Cap Rate 7%
$140,300
$140.3K
Cap Rate 9%
$109,122
$109.1K
Market Conditions
NOI Build-Up for 1,600 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
$15.2K $9.48/SF
− Vacancy
−$1.1K −$0.71/SF
EGI
$14.0K $8.77/SF
− OpEx
−$4.2K −$2.63/SF
NOI
$9.8K $6.14/SF
Area
San Juan County, NM
Vacancy
7.50%
Lease Rate
$9.48 /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%
$196,420
Cap Rate 7%
$140,300
Cap Rate 9%
$109,122
Alternative Uses
Best Use
Industrial
$140.3K
$122.8K – $163.7K
NOI $9,821 @ 7.0% cap · market cap 3.93%
Second Best
Flex RnD
$92.4K
$80.8K – $107.8K
NOI $6,465 @ 7.0% cap · market cap 2.59%
Theoretical Best
Office A
$331.0K
$289.6K – $386.2K
NOI $23,170 @ 7.0% cap · market cap 9.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
730
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 87401, NM
44,724
Population
17,611
Households
2.5
Avg Household Size
34
Median Age
19%
College-Educated
88%
High-School Grad
132.8 sq mi
ZIP Area
337
Density / Sq Mi
$56,358
Median Household Income
$31,362
Median Earnings
$983
Median Rent
$202,400
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Similar Off Market Nearby
- USA Catering Service — 2010 E Main St, Farmington, NM 87401
Frequently Asked Questions
What type of property is this?
Flex space - Commercial building with fenced storage yard and upgraded electric.
Where is this flex space located?
The property is located at 2005 N LEE Avenue Farmington, NM.
What is the asking price?
The asking price for this property is $249,888.
What are key features of this property?
This property features: Large, fenced storage yard provides security and ample space.; Upgraded electric ensures sufficient power for various needs.; 1600 sq.ft. block building offers durability and functionality.
