Two-Story Office
For Sale
Contact for pricing
2040-2050 Broad Street, San Luis Obispo, CA 93401
Corner office property with multiple suites, private offices, support areas, and covered outdoor space.
Property Size2,550 SF
Price / SF$411.76
Days on Market11
Property Features for 2040-2050 Broad Street
General Information
Standard status
Active
Size
2,550 SF
Total Parking Spaces
8
Property subtype
Office
Additional Details
Office Units
3
Amenities
covered patio
Building Details
Buildings
1
Stories
2
Units
3
Listing Agency:
Anderson & Senn Commercial Real Estate
(805) 543-1400
Listed By:
Derek Senn · License #01252131
Source:
Crexi
Added: Aug 22
Changed: Aug 31
Last Checked: Sep 1 at 4:34AM
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 Anderson & Senn Commercial Real Estate
Investment Insights
Based on property information with market context.
This two-story office property contains 2,550 SF of interior space arranged for multiple occupants or users. The ground level includes a 675 SF suite with two private offices, a reception area, kitchenette, and restroom. Upstairs, two additional suites together provide 1,875 SF.
The building occupies the corner of Broad Street and Chorro Streets in San Luis Obispo, California, with eight onsite parking spaces. More than 500 SF of covered patio space extends the usable area beyond the stated interior square footage.
The building occupies the corner of Broad Street and Chorro Streets in San Luis Obispo, California, with eight onsite parking spaces. More than 500 SF of covered patio space extends the usable area beyond the stated interior square footage.
Key Highlights
- 2,550 SF two‑story office building
- 675 SF ground‑floor suite with two private offices, reception, kitchenette, and restroom
- Two second‑floor suites totaling 1,875 SF
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
$47,461
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
4.52%
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%
$949,220
$949.2K
Cap Rate 7%
$678,014
$678.0K
Cap Rate 9%
$527,344
$527.3K
Market Conditions
NOI Build-Up for 2,550 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
$67.3K $26.40/SF
− Vacancy
−$4.0K −$1.58/SF
EGI
$63.3K $24.82/SF
− OpEx
−$15.8K −$6.20/SF
NOI
$47.5K $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%
$949,220
Cap Rate 7%
$678,014
Cap Rate 9%
$527,344
Alternative Uses
Best Use
Office B
$678.0K
$593.3K – $791.0K
NOI $47,461 @ 7.0% cap · market cap 4.52%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$1.00M
$877.5K – $1.17M
NOI $70,201 @ 7.0% cap · market cap 6.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
3
Office units
Location Intelligence
Trade Area within ½ mile
1,713
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 building - Corner office property with multiple suites, private offices, support areas, and covered outdoor space.
Where is this office building located?
The property is located at 2040-2050 Broad Street San Luis Obispo, CA.
What is the asking price?
The asking price for this property is $1,050,000.
What are key features of this property?
This property features: 2,550 SF two‑story office building; 675 SF ground‑floor suite with two private offices, reception, kitchenette, and restroom; Two second‑floor suites totaling 1,875 SF
