Updated Multi-Office
For Sale
$475,000
1035 Peach Street, San Luis Obispo, CA 93401
Recently refreshed professional office space with elevator access, shared outdoor amenities, and designated off-street parking.
Property Size1,280 SF
Price / SF$371.09
Days on Market562
Property Features for 1035 Peach Street
General Information
Standard status
Active
Size
1,280 SF
Elevators
Yes
Property subtype
Office
Additional Details
Floor
3
Highway Access
Yes
Office Units
2
Amenities
shared outdoor common area
3
Flat
Building Details
Year Built
1986
Listing Agency:
(805) 544-7000
Listed By:
Compass
Source:
Xome
Added: Feb 22, 2025
Changed: Sep 2
Last Checked: Sep 7 at 6:19AM
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 Compass
Investment Insights
Based on property information with market context.
Unit 203 at Peach Street Professional Plaza offers 1,279 square feet of office space arranged across multiple rooms. Recent interior painting provides a refreshed setting for professional operations, while building access is supported by both stairs and an elevator. Designated off-street parking is available in the building’s large parking area.
A shared third-floor outdoor common area includes table seating and views toward Cerro San Luis, the nearby Cal Poly campus, and the surrounding San Luis Obispo cityscape. The property provides access to Highway 101 and routes toward San Luis Obispo and Highway 1. Medical services, Sierra Vista Hospital, county and city government centers, restaurants, shopping, and downtown San Luis Obispo are also nearby.
A shared third-floor outdoor common area includes table seating and views toward Cerro San Luis, the nearby Cal Poly campus, and the surrounding San Luis Obispo cityscape. The property provides access to Highway 101 and routes toward San Luis Obispo and Highway 1. Medical services, Sierra Vista Hospital, county and city government centers, restaurants, shopping, and downtown San Luis Obispo are also nearby.
Key Highlights
- 1,279‑square‑foot office unit at Peach Street Professional Plaza
- Multiple offices with recent interior painting
- Third‑floor shared outdoor area with table seating
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
$23,823
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
5.02%
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%
$476,460
$476.5K
Cap Rate 7%
$340,329
$340.3K
Cap Rate 9%
$264,700
$264.7K
Market Conditions
NOI Build-Up for 1,280 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
$33.8K $26.40/SF
− Vacancy
−$2.0K −$1.58/SF
EGI
$31.8K $24.82/SF
− OpEx
−$7.9K −$6.20/SF
NOI
$23.8K $18.61/SF
Area
San Luis Obispo County, CA
Vacancy
6.00%
Lease Rate
$26.40 /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%
$476,460
Cap Rate 7%
$340,329
Cap Rate 9%
$264,700
Alternative Uses
Best Use
Office B
$340.3K
$297.8K – $397.1K
NOI $23,823 @ 7.0% cap · market cap 5.02%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$503.4K
$440.5K – $587.3K
NOI $35,238 @ 7.0% cap · market cap 7.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
3,828
Businesses Nearby
Explore this area
Business Placement
Demographics for 93401, CA
29,877
Population
14,363
Households
2.1
Avg Household Size
39
Median Age
57%
College-Educated
96%
High-School Grad
64.2 sq mi
ZIP Area
465
Density / Sq Mi
$95,386
Median Household Income
$47,898
Median Earnings
$1,859
Median Rent
$943,500
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?
Office units - Recently refreshed professional office space with elevator access, shared outdoor amenities, and designated off-street parking.
Where is this office units located?
The property is located at 1035 Peach Street San Luis Obispo, CA.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: 1,279‑square‑foot office unit at Peach Street Professional Plaza; Multiple offices with recent interior painting; Third‑floor shared outdoor area with table seating
