Climate-Controlled Industrial Facility in
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20800 Spence Rd, Salinas, CA 93908
42,519 SF climate-controlled industrial facility on 5 acres.
Property Size42,519 SF
Lot Size5.00 Acres
Price / SF$117.59
Days on Market205
Property Features for 20800 Spence Rd
General Information
Standard status
Active
Size
42,519 SF
Lot size
5.00 Acres
Property subtype
Industrial
Zoning
HI/ B-5 – Industrial
Building Details
Buildings
4
Listing Agency:
Mahoney & Associates
(831) 238-3592
Listed By:
Patrick Stafford · License #01857243
Source:
Crexi
Added: Jan 29
Changed: Aug 8
Last Checked: Aug 20 at 9:47PM
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 Mahoney & Associates
Investment Insights
Based on property information with market context.
The property located at 20800 Spence Rd., Salinas, CA, is a climate-controlled industrial facility with ±42,519 square feet. Situated on a ±5-acre, fully fenced site, the property consists of four buildings. It features 32’ clear heights, 10 dock-high loading bays, extensive security systems, and ample parking. The facility is equipped with 5,000+ amps of 3-phase power and a dedicated 2,000 kVA transformer. It also includes dry rooms, and HVAC and electrical infrastructure designed for cold storage and specialized industrial uses. The property is zoned HI / B-5 (Industrial) and is conveniently located near Highway 101, offering excellent access and operational flexibility for a wide range of industrial users.
Key Highlights
- ±42,519 SF climate‑controlled industrial facility ideal for cold storage and specialized industrial uses
- Located on a ±5‑acre, fully fenced site with ample parking
- Features impressive 32’ clear heights and 10 dock‑high loading bays
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
$448,439
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
8.97%
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%
$8,968,780
$9.0M
Cap Rate 7%
$6,406,271
$6.4M
Cap Rate 9%
$4,982,656
$5.0M
Market Conditions
NOI Build-Up for 42,519 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
$561.3K $13.20/SF
− Vacancy
−$33.7K −$0.79/SF
EGI
$527.6K $12.41/SF
− OpEx
−$79.1K −$1.86/SF
NOI
$448.4K $10.55/SF
Area
Salinas, CA
Vacancy
6.00%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
15.00%
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%
$8,968,780
Cap Rate 7%
$6,406,271
Cap Rate 9%
$4,982,656
Alternative Uses
Best Use
Warehouse
$6.41M
$5.61M – $7.47M
NOI $448,439 @ 7.0% cap · market cap 8.97%
Second Best
Industrial
$5.71M
$4.99M – $6.66M
NOI $399,447 @ 7.0% cap · market cap 7.99%
Theoretical Best
Office A
$13.39M
$11.71M – $15.62M
NOI $937,187 @ 7.0% cap · market cap 18.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
62
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 93908, CA
13,188
Population
4,543
Households
2.9
Avg Household Size
47
Median Age
56%
College-Educated
91%
High-School Grad
240.9 sq mi
ZIP Area
55
Density / Sq Mi
$164,554
Median Household Income
$76,905
Median Earnings
$1,650
Median Rent
$1,071,000
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - 42,519 SF climate-controlled industrial facility on 5 acres.
Where is this warehouse located?
The property is located at 20800 Spence Rd Salinas, CA.
What is the asking price?
The asking price for this property is $5,000,000.
What are key features of this property?
This property features: ±42,519 SF climate‑controlled industrial facility ideal for cold storage and specialized industrial uses; Located on a ±5‑acre, fully fenced site with ample parking; Features impressive 32’ clear heights and 10 dock‑high loading bays
