Two-Story Multi-Tenant Retail
For Sale
$6,950,000
2727 Shelter Island Drive, San Diego, CA 92106
Elevator service connects the building’s two levels for convenient access throughout the property.
Property Size10,858 SF
Days on Market149
Property Features for 2727 Shelter Island Drive
General Information
Standard status
Active
Size
10,858 SF
Property subtype
Retail
Building Details
Building Size
10,858 SF
Listing Agency:
Lee & Associates | North San Diego County
Listed By:
Jeff Abramson · License #CalDRE #00956805
(760) 505-5301
Source:
Lee-associates
Added: Apr 20
Changed: Sep 13
Last Checked: Sep 14 at 10:07AM
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 | North San Diego County
Investment Insights
Based on property information with market context.
This two-story commercial building offers approximately 10,858 rentable square feet in a multi-tenant configuration. Elevator service provides access between levels, supporting the building’s vertical layout and shared occupancy structure.
The property is located at 2727 Shelter Island Drive in San Diego, California. Its address places the asset within the Shelter Island Drive commercial corridor, while the available information identifies the building as retail space suitable for multi-tenant occupancy.
The property is located at 2727 Shelter Island Drive in San Diego, California. Its address places the asset within the Shelter Island Drive commercial corridor, while the available information identifies the building as retail space suitable for multi-tenant occupancy.
Key Highlights
- Approximately 10,858 rentable square feet
- Two‑story commercial building
- Elevator‑served layout
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
$262,102
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
3.77%
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%
$5,242,040
$5.2M
Cap Rate 7%
$3,744,314
$3.7M
Cap Rate 9%
$2,912,244
$2.9M
Market Conditions
NOI Build-Up for 10,858 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
$390.9K $36.00/SF
− Vacancy
−$16.5K −$1.52/SF
EGI
$374.4K $34.48/SF
− OpEx
−$112.3K −$10.35/SF
NOI
$262.1K $24.14/SF
Area
San Diego, CA
Vacancy
4.21%
Lease Rate
$36.00 /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%
$5,242,040
Cap Rate 7%
$3,744,314
Cap Rate 9%
$2,912,244
Alternative Uses
Best Use
Retail
$3.74M
$3.28M – $4.37M
NOI $262,102 @ 7.0% cap · market cap 3.77%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.29M
$3.75M – $5.00M
NOI $300,202 @ 7.0% cap · market cap 4.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,578
Businesses Nearby
101k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 53%
Shops & Services 29%
Hotels & Casinos 18%
Starbucks
Dining
16,466 visits/mo
0.5 miles
Better Buzz Coffee Roasters
Dining
14,596 visits/mo
0.4 miles
Shell
Shops & Services
11,069 visits/mo
0.4 miles
Jack in the Box
Dining
9,408 visits/mo
0.3 miles
Denny's
Dining
7,827 visits/mo
0.5 miles
Demographics for 92106, CA
20,214
Population
7,908
Households
2.6
Avg Household Size
39
Median Age
63%
College-Educated
97%
High-School Grad
5.7 sq mi
ZIP Area
3,546
Density / Sq Mi
$127,209
Median Household Income
$55,428
Median Earnings
$2,231
Median Rent
$1,359,000
Median Home Value
Market
Vacancy Rate% for Retail in San Diego, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Elevator service connects the building’s two levels for convenient access throughout the property.
Where is this retail space located?
The property is located at 2727 Shelter Island Drive San Diego, CA.
What is the asking price?
The asking price for this property is $6,950,000.
What are key features of this property?
This property features: Approximately 10,858 rentable square feet; Two‑story commercial building; Elevator‑served layout
