Flex Space With Fenced
For Sale
Under Contract
$1,550,000
126 Fern ST, Santa Cruz, CA 95060
Commercial/Industrial, SANTA CRUZ, CA
Property Size5,400 SF
Lot Size0.23 Acres
Price / SF$287.04
Days on Market45
Property Features for 126 Fern ST
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Light Industrial
Parking
10
Parking features
Covered
Security features
Security Alarm
Subdivision
West Santa Cruz
Standard status
Active Under Contract
Lot size
0.23 Acres
Utilities
Heating system
Central, Forced Air
Cooling system
Central Air
Water source
Public
Amenities
kitchen
fenced yard/storage
Building Details
Year built
1974
Listing Agency:
David Lyng Real Estate
(831) 429-5700
Listed By:
Kasey Hinchman · License #01424163
(831) 239-3708
Added: Jul 16
Changed: Aug 27
Last Checked: Aug 29 at 12:06PM
MLS# ML82048057
Copyright © 2026 MLS Listings, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
The property is a flex-space facility with a warehouse and office component at 126 Fern St in Santa Cruz. The building includes approximately five offices, a kitchen, covered parking, a fenced yard or storage area, and two roll-up doors. Central heating, forced-air heat, central air conditioning, and public water serve the improvements. Built in 1974, the facility is situated on two industrial parcels totaling approximately 9,844 square feet: 126 Fern St and 130 Fern St. The offering also includes operational assets associated with the construction business, including work trucks, bobcats, a forklift, tools, equipment, inventory, and materials. Zoning is Light Industrial.
Key Highlights
- 5,400+ SF warehouse/office facility at 126 Fern St
- Two industrial parcels totaling approx. 9,844 SF
- Approximately five offices plus kitchen area
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
$132,678
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
8.56%
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%
$2,653,560
$2.7M
Cap Rate 7%
$1,895,400
$1.9M
Cap Rate 9%
$1,474,200
$1.5M
Market Conditions
NOI Build-Up for 5,400 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
$226.8K $42.00/SF
− Vacancy
−$49.9K −$9.24/SF
EGI
$176.9K $32.76/SF
− OpEx
−$44.2K −$8.19/SF
NOI
$132.7K $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%
$2,653,560
Cap Rate 7%
$1,895,400
Cap Rate 9%
$1,474,200
Alternative Uses
Best Use
Office B
$1.90M
$1.66M – $2.21M
NOI $132,678 @ 7.0% cap · market cap 8.56%
Second Best
Warehouse
$1.87M
$1.64M – $2.19M
NOI $131,228 @ 7.0% cap · market cap 8.47%
Theoretical Best
Retail
$3.09M
$2.70M – $3.60M
NOI $216,140 @ 7.0% cap · market cap 13.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
1,246
Businesses Nearby
Well-served
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 Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - Industrial facility with office accommodation, covered parking, public water, and two roll-up doors.
Where is this flex space located?
The property is located at 126 Fern ST Santa Cruz, CA.
What is the asking price?
The asking price for this property is $1,550,000.
What are key features of this property?
This property features: 5,400+ SF warehouse/office facility at 126 Fern St; Two industrial parcels totaling approx. 9,844 SF; Approximately five offices plus kitchen area
