Downtown Banning Commercial
For Sale
$395,000
170 Ramsey Street, Banning, CA 92220
Versatile building in downtown Banning suitable for various business ventures.
Property Size2,400 SF
Price / SF$164.58
Days on Market469
Property Features for 170 Ramsey Street
General Information
Standard status
Active
Size
2,400 SF
Property subtype
Mixed Use
Amenities
3
Downtown Commercial
Level
Public Transport, Level.
Building Details
Year Built
1928
Listing Agency:
CENTURY 21 LOIS LAUER REALTY
(909) 570-6000
Listed By:
Karla Degonia · License #01377589
(909) 855-3053
Source:
Xome
Added: May 23, 2025
Changed: Sep 3
Last Checked: Sep 2 at 6:30PM
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 CENTURY 21 LOIS LAUER REALTY
Investment Insights
Based on property information with market context.
Located in downtown Banning, this commercial building presents a versatile opportunity. The property features a spacious, light-filled front area suitable for an office, restaurant, retail shop, or storefront. High visibility and foot and vehicle traffic characterize the location. A secondary area provides additional office space or a flexible workroom, along with a small kitchenette, a bathroom, and a storage area. Upstairs, there is a private office space. The property is zoned Downtown Commercial. It offers potential for launching a new business, expanding an existing brand, or creating a destination spot in Banning’s revitalizing downtown. Buyer is responsible for verifying all potential uses with the City of Banning.
Key Highlights
- Prime downtown Banning location with high visibility and excellent foot and vehicle traffic.
- Versatile building suitable for office, restaurant, retail, or boutique use.
- Zoned Downtown Commercial, offering a wide range of business possibilities.
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
$34,401
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
8.71%
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%
$688,020
$688.0K
Cap Rate 7%
$491,443
$491.4K
Cap Rate 9%
$382,233
$382.2K
Market Conditions
NOI Build-Up for 2,400 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
$51.8K $21.60/SF
− Vacancy
−$2.7K −$1.12/SF
EGI
$49.1K $20.48/SF
− OpEx
−$14.7K −$6.14/SF
NOI
$34.4K $14.33/SF
Area
Riverside County, CA
Vacancy
5.20%
Lease Rate
$21.60 /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%
$688,020
Cap Rate 7%
$491,443
Cap Rate 9%
$382,233
Alternative Uses
Best Use
Retail
$491.4K
$430.0K – $573.4K
NOI $34,401 @ 7.0% cap · market cap 8.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$719.0K
$629.1K – $838.8K
NOI $50,330 @ 7.0% cap · market cap 12.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
634
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 92220, CA
32,947
Population
13,258
Households
2.5
Avg Household Size
43
Median Age
17%
College-Educated
82%
High-School Grad
141.3 sq mi
ZIP Area
233
Density / Sq Mi
$59,116
Median Household Income
$35,428
Median Earnings
$1,499
Median Rent
$324,800
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Versatile building in downtown Banning suitable for various business ventures.
Where is this storefront property located?
The property is located at 170 Ramsey Street Banning, CA.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: Prime downtown Banning location with high visibility and excellent foot and vehicle traffic.; Versatile building suitable for office, restaurant, retail, or boutique use.; Zoned Downtown Commercial, offering a wide range of business possibilities.
