Manufacturing Facility with Grade-Level
For Sale
$4,800,000
1740 Commerce Way, Paso Robles, CA 93446
Warehouse and finished office total about 40,180 SF with multiple grade-level roll-up loading doors and 17-foot clear height.
Property Size40,180 SF
Lot Size2.01 Acres
Price / SF$119.46
Days on Market19
Property Features for 1740 Commerce Way
General Information
Standard status
Active
Size
40,180 SF
Lot size
2.01 Acres
Property subtype
Industrial
Warehouse & Industrial
Clear Height
17 ft
Heavy Power
Yes
Sprinkler System
Yes
Building Details
Building Size
40,180 SF
Listing Agency:
Lee & Associates - San Luis Obispo - Central California
(805) 218-5766
Listed By:
Alex Olsen · License #CalDRE #01126609
Source:
Lee-associates
Added: Jul 23
Changed: Aug 8
Last Checked: Aug 10 at 3:06AM
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 Lee & Associates - San Luis Obispo - Central California
Investment Insights
Based on property information with market context.
1740 Commerce Way is a functional warehouse and office manufacturing facility with approximately 32,500 SF of warehouse space and 7,680 SF of finished office space across two levels. The building includes multiple grade-level roll-up loading doors, a fully sprinklered warehouse, and heavy 3-phase electrical service, supported by an efficient warehouse layout. Clear height is approximately 17 feet.
The property sits on a 2.01-acre parcel at 1740 Commerce Way in Paso Robles, CA 93446, with the flexibility to serve manufacturing operations requiring both shop and office space.
An option exists to purchase together with the adjacent 1750 Commerce Way property for a combined 65,984 SF industrial campus.
The property sits on a 2.01-acre parcel at 1740 Commerce Way in Paso Robles, CA 93446, with the flexibility to serve manufacturing operations requiring both shop and office space.
An option exists to purchase together with the adjacent 1750 Commerce Way property for a combined 65,984 SF industrial campus.
Key Highlights
- Industrial manufacturing facility with approximately 40,180 SF total: 32,500 SF warehouse and 7,680 SF finished office across two levels
- Multiple grade‑level roll‑up loading doors for warehouse access
- Approximately 17‑foot clear warehouse height
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
$407,968
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
8.50%
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%
$8,159,360
$8.2M
Cap Rate 7%
$5,828,114
$5.8M
Cap Rate 9%
$4,532,978
$4.5M
Market Conditions
NOI Build-Up for 40,180 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
$602.7K $15.00/SF
− Vacancy
−$19.9K −$0.50/SF
EGI
$582.8K $14.50/SF
− OpEx
−$174.8K −$4.35/SF
NOI
$408.0K $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%
$8,159,360
Cap Rate 7%
$5,828,114
Cap Rate 9%
$4,532,978
Alternative Uses
Best Use
Office B
$10.68M
$9.35M – $12.46M
NOI $747,830 @ 7.0% cap · market cap 15.58%
Second Best
Flex RnD
$7.12M
$6.23M – $8.30M
NOI $498,262 @ 7.0% cap · market cap 10.38%
Theoretical Best
Healthcare Medical
$15.80M
$13.83M – $18.44M
NOI $1,106,152 @ 7.0% cap · market cap 23.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
17 ft
Clear height
Yes
Heavy power
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
264
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 93446, CA
45,979
Population
19,786
Households
2.3
Avg Household Size
41
Median Age
30%
College-Educated
91%
High-School Grad
428.3 sq mi
ZIP Area
107
Density / Sq Mi
$94,512
Median Household Income
$43,229
Median Earnings
$1,946
Median Rent
$661,400
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?
Flex space - Warehouse and finished office total about 40,180 SF with multiple grade-level roll-up loading doors and 17-foot clear height.
Where is this flex space located?
The property is located at 1740 Commerce Way Paso Robles, CA.
What is the asking price?
The asking price for this property is $4,800,000.
What are key features of this property?
This property features: Industrial manufacturing facility with approximately 40,180 SF total: 32,500 SF warehouse and 7,680 SF finished office across two levels; Multiple grade‑level roll‑up loading doors for warehouse access; Approximately 17‑foot clear warehouse height
