Heavy Industrial Shop on HI Zoned
For Sale
$1,037,500
Pending
46135 Division, Lancaster, CA 93535
Vacant 4,900 SF shop building with office buildout and two grade-level rollups on 2.15 acres zoned HI.
Property Size4,900 SF
Lot Size2.15 Acres
Days on Market156
Property Features for 46135 Division
General Information
Standard status
Pending
Size
4,900 SF
Lot size
2.15 Acres
Property subtype
Industrial
Zoning
HI
Additional Details
Cap Rate
8%
Drive-In Doors
2
Building Details
Building Size
4,900 SF
Year Built
1980
Listing Agency:
Markowitz Commercial Real Estate, Inc.
Listed By:
Joshua Markowitz · License #01978248
(818) 337-9066
Source:
Elliman
Added: Apr 1
Changed: Aug 8
Last Checked: Jul 23 at 11:09AM
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 Markowitz Commercial Real Estate, Inc.
Investment Insights
Based on property information with market context.
This heavy industrial offering includes a 4,900 SF shop building plus a rented modular home on 2.15 acres zoned HI. The shop will be delivered vacant, with an office buildout featuring reception, a kitchen, two bathrooms, and three private offices. The clean shop area includes two grade-level roll-up doors.
The property is set up with car and truck parking to support on-site operations. Public remarks indicate current tenants include a tree trimming company and the modular home.
The configuration combines office space and warehouse/shop functionality within a single heavy industrial site, providing a straightforward owner-user option or an opportunity for an investor to lease the modular home while occupying the vacant shop.
The property is set up with car and truck parking to support on-site operations. Public remarks indicate current tenants include a tree trimming company and the modular home.
The configuration combines office space and warehouse/shop functionality within a single heavy industrial site, providing a straightforward owner-user option or an opportunity for an investor to lease the modular home while occupying the vacant shop.
Key Highlights
- Vacant 4,900 SF heavy industrial shop building delivered vacant for owner‑user or investor use
- 2.15 acres zoned HI with office buildout plus clean shop space
- Office features include reception, kitchen, 2 bathrooms, and 3 private offices
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
$72,424
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
6.98%
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%
$1,448,480
$1.4M
Cap Rate 7%
$1,034,629
$1.0M
Cap Rate 9%
$804,711
$804.7K
Market Conditions
NOI Build-Up for 4,900 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
$90.0K $18.36/SF
− Vacancy
−$4.8K −$0.97/SF
EGI
$85.2K $17.39/SF
− OpEx
−$12.8K −$2.61/SF
NOI
$72.4K $14.78/SF
Area
Lancaster, CA
Vacancy
5.29%
Lease Rate
$18.36 /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%
$1,448,480
Cap Rate 7%
$1,034,629
Cap Rate 9%
$804,711
Alternative Uses
Best Use
Warehouse
$1.03M
$905.3K – $1.21M
NOI $72,424 @ 7.0% cap · market cap 6.98%
Second Best
Flex RnD
$923.8K
$808.4K – $1.08M
NOI $64,668 @ 7.0% cap · market cap 6.23%
Theoretical Best
Office A
$1.54M
$1.35M – $1.80M
NOI $107,740 @ 7.0% cap · market cap 10.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Drive-in doors
Location Intelligence
Trade Area within ½ mile
45
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 93535, CA
82,149
Population
23,917
Households
3.4
Avg Household Size
31
Median Age
14%
College-Educated
78%
High-School Grad
239.0 sq mi
ZIP Area
344
Density / Sq Mi
$65,989
Median Household Income
$41,834
Median Earnings
$1,650
Median Rent
$336,200
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 - Vacant 4,900 SF shop building with office buildout and two grade-level rollups on 2.15 acres zoned HI.
Where is this flex space located?
The property is located at 46135 Division Lancaster, CA.
What is the asking price?
The asking price for this property is $1,037,500.
What are key features of this property?
This property features: Vacant 4,900 SF heavy industrial shop building delivered vacant for owner‑user or investor use; 2.15 acres zoned HI with office buildout plus clean shop space; Office features include reception, kitchen, 2 bathrooms, and 3 private offices
