Secure Industrial Park with
For Sale
$5,495,000
1291 Mesa View Dr, Arroyo Grande, CA 93420
Centrally located industrial park features three reinforced concrete buildings on separate, fenced, gated parcels with heavy power.
Property Size47,000 SF
Lot Size15.45 Acres
Price / SF$116.91
Days on Market241
Property Features for 1291 Mesa View Dr
General Information
Standard status
Active
Size
47,000 SF
Lot size
15.45 Acres
Property subtype
Commercial/Industrial
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Additional Details
Heavy Power
Yes
Building Details
Year Built
1952
Listing Agency:
Lynette S. Branch, Broker
Listed By:
Lynette Branch · License #01387743
(805) 459-9111
Source:
Exitrealty
Added: Jan 6
Changed: Sep 1
Last Checked: Sep 4 at 10:46AM
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 Lynette S. Branch, Broker
Investment Insights
Based on property information with market context.
Callender Commercial Park is a 15.45-acre industrial park offering ten separate parcels in Arroyo Grande, CA. The property includes three reinforced concrete buildings totaling approximately 47,000 square feet, with an additional 10,000 square feet of approved space ready to break ground. Each building sits on its own parcel and is individually metered, supported by heavy 3-phase power. The site is secured with perimeter fencing and an automatic entrance gate.
The park is adjacent to Highway 1 and across the street from the Pacific Ocean, supporting convenient access for industrial operations. Multiple parcels have the ability for cannabis cultivation, manufacturing, and delivery service with appropriate licenses and permits. There is also the potential to develop the remaining seven parcels, which could be zoned for cannabis, a variety of industrial or mixed uses, or high-end RV storage. Existing approved plans and a rent roll are available upon request.
The park is adjacent to Highway 1 and across the street from the Pacific Ocean, supporting convenient access for industrial operations. Multiple parcels have the ability for cannabis cultivation, manufacturing, and delivery service with appropriate licenses and permits. There is also the potential to develop the remaining seven parcels, which could be zoned for cannabis, a variety of industrial or mixed uses, or high-end RV storage. Existing approved plans and a rent roll are available upon request.
Key Highlights
- 15.45‑acre industrial park in Arroyo Grande, CA, adjacent to Highway 1 and across the street from the Pacific Ocean
- Ten separate parcels with three reinforced concrete buildings totaling approximately 47,000 SF on individually metered, fenced, gated sites
- Heavy 3‑phase power available and property described as extremely secure with perimeter fencing and automatic entrance gate
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
$477,214
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
8.68%
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%
$9,544,280
$9.5M
Cap Rate 7%
$6,817,343
$6.8M
Cap Rate 9%
$5,302,378
$5.3M
Market Conditions
NOI Build-Up for 47,000 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
$705.0K $15.00/SF
− Vacancy
−$23.3K −$0.50/SF
EGI
$681.7K $14.50/SF
− OpEx
−$204.5K −$4.35/SF
NOI
$477.2K $10.15/SF
Area
San Luis Obispo County, CA
Vacancy
3.30%
Lease Rate
$15.00 /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%
$9,544,280
Cap Rate 7%
$6,817,343
Cap Rate 9%
$5,302,378
Alternative Uses
Best Use
Flex RnD
$8.33M
$7.29M – $9.71M
NOI $582,835 @ 7.0% cap · market cap 10.61%
Second Best
Warehouse
$7.62M
$6.66M – $8.89M
NOI $533,117 @ 7.0% cap · market cap 9.70%
Theoretical Best
Healthcare Medical
$18.48M
$16.17M – $21.57M
NOI $1,293,906 @ 7.0% cap · market cap 23.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Heavy power
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
48
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 93420, CA
30,540
Population
13,823
Households
2.2
Avg Household Size
49
Median Age
44%
College-Educated
95%
High-School Grad
197.4 sq mi
ZIP Area
155
Density / Sq Mi
$106,718
Median Household Income
$51,990
Median Earnings
$2,025
Median Rent
$872,200
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 - Centrally located industrial park features three reinforced concrete buildings on separate, fenced, gated parcels with heavy power.
Where is this flex space located?
The property is located at 1291 Mesa View Dr Arroyo Grande, CA.
What is the asking price?
The asking price for this property is $5,495,000.
What are key features of this property?
This property features: 15.45‑acre industrial park in Arroyo Grande, CA, adjacent to Highway 1 and across the street from the Pacific Ocean; Ten separate parcels with three reinforced concrete buildings totaling approximately 47,000 SF on individually metered, fenced, gated sites; Heavy 3‑phase power available and property described as extremely secure with perimeter fencing and automatic entrance gate
