Remodeled Office Space in Santa
For Sale
$495,000
1424 Luisa #1 & 2, Santa Fe, NM 87505
Turnkey office space with modern interiors in a convenient location.
Property Size2,078 SF
Lot Size0.05 Acres
Price / SF$238.21
Days on Market181
Property Features for 1424 Luisa #1 & 2
General Information
Standard status
Active
Size
2,078 SF
Lot size
0.05 Acres
Property subtype
Commercial
Building Details
Year Built
1980
Listing Agency:
VARELA REAL ESTATE, INC.
(505) 982-2525
Listed By:
PHILLIP VARELA · License #18075
Source:
Corcoran
Added: Mar 4
Changed: Aug 31
Last Checked: Aug 31 at 7:10PM
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 VARELA REAL ESTATE, INC.
Investment Insights
Based on property information with market context.
This well-maintained and thoughtfully remodeled office space is located at 1424 Luisa Street, Units 1 & 2, in a convenient Santa Fe location. The property offers both functionality and professional appeal. The turnkey office environment features updated finishes, clean and modern interiors, and a flexible layout suitable for a variety of professional uses. The property delivers efficiency and comfort. The two combined units offer flexible configuration with the possibility of leasing out a third smaller unit. The interior is tastefully remodeled. It is great for personal use or investment. The professional setting is ideal for office or service-based businesses. The location is fantastic with convenient access to main streets and surrounding commercial areas. Ample on-site parking is available. Each space offers a welcoming reception area, private offices, a conference area, and a kitchenette with functional workspaces designed to support productivity while maintaining a professional atmosphere for clients and staff. Located in a well-established commercial corridor of Santa Fe, this property provides accessibility and visibility while maintaining a quiet, professional setting. The property size is 2078 square feet.
Key Highlights
- Turnkey, remodeled office space in a convenient Santa Fe location.
- Flexible layout suitable for various professional uses, with the possibility of leasing out a 3rd smaller unit.
- Well‑maintained interior ideal for personal use or investment.
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
$28,614
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
5.78%
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%
$572,280
$572.3K
Cap Rate 7%
$408,771
$408.8K
Cap Rate 9%
$317,933
$317.9K
Market Conditions
NOI Build-Up for 2,078 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
$44.9K $21.60/SF
− Vacancy
−$6.7K −$3.24/SF
EGI
$38.2K $18.36/SF
− OpEx
−$9.5K −$4.59/SF
NOI
$28.6K $13.77/SF
Area
Santa Fe County, NM
Vacancy
15.00%
Lease Rate
$21.60 /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%
$572,280
Cap Rate 7%
$408,771
Cap Rate 9%
$317,933
Alternative Uses
Best Use
Office B
$408.8K
$357.7K – $476.9K
NOI $28,614 @ 7.0% cap · market cap 5.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$564.3K
$493.7K – $658.3K
NOI $39,499 @ 7.0% cap · market cap 7.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
7
Businesses Nearby
Explore this area
Business Placement
Demographics for 87505, NM
32,078
Population
18,733
Households
1.7
Avg Household Size
52
Median Age
54%
College-Educated
94%
High-School Grad
65.1 sq mi
ZIP Area
493
Density / Sq Mi
$75,912
Median Household Income
$41,169
Median Earnings
$1,348
Median Rent
$484,100
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 - Turnkey office space with modern interiors in a convenient location.
Where is this office units located?
The property is located at 1424 Luisa #1 & 2 Santa Fe, NM.
What is the asking price?
The asking price for this property is $495,000.
What are key features of this property?
This property features: Turnkey, remodeled office space in a convenient Santa Fe location.; Flexible layout suitable for various professional uses, with the possibility of leasing out a 3rd smaller unit.; Well‑maintained interior ideal for personal use or investment.
