Leased Warehouse Investment
For Sale
$3,150,000
2115 Willow Rd, Arroyo Grande, CA 93420
12,000 sq ft warehouse on 1.86 acres for sale.
Property Size12,000 SF
Lot Size1.86 Acres
Price / SF$262.50
Days on Market165
Property Features for 2115 Willow Rd
General Information
Standard status
Active
Size
12,000 SF
Lot size
1.86 Acres
Property subtype
Industrial
Building Details
Building Size
12,000 SF
Listing Agency:
McCarty Davis Commercial Real Estate
(805) 543-1801
Listed By:
Steve Davis · License #01843738
(805) 543-1801
Source:
Elliman
Added: Mar 11
Changed: Aug 19
Last Checked: Aug 22 at 12:18PM
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 McCarty Davis Commercial Real Estate
Investment Insights
Based on property information with market context.
This property features a 12,000 square foot warehouse building, fully leased and situated on approximately 1.86 acres. The property is zoned for industrial use and is located in the County of San Luis Obispo. The current capitalization rate is 8.8%, with a proforma capitalization rate of 9.1%. The property has a large lot size that could potentially accommodate additional building construction. The current site coverage is 15%. A water well is located on-site.
Key Highlights
- 100% Leased Investment Property
- High Current Cap Rate: 8.8%
- Potential for Increased Cap Rate: Proforma 9.1%
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
$136,115
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
4.32%
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%
$2,722,300
$2.7M
Cap Rate 7%
$1,944,500
$1.9M
Cap Rate 9%
$1,512,389
$1.5M
Market Conditions
NOI Build-Up for 12,000 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
$165.6K $13.80/SF
− Vacancy
−$5.5K −$0.46/SF
EGI
$160.1K $13.34/SF
− OpEx
−$24.0K −$2.00/SF
NOI
$136.1K $11.34/SF
Area
San Luis Obispo County, CA
Vacancy
3.30%
Lease Rate
$13.80 /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%
$2,722,300
Cap Rate 7%
$1,944,500
Cap Rate 9%
$1,512,389
Alternative Uses
Best Use
Warehouse
$1.94M
$1.70M – $2.27M
NOI $136,115 @ 7.0% cap · market cap 4.32%
Second Best
Industrial
$1.74M
$1.52M – $2.03M
NOI $121,842 @ 7.0% cap · market cap 3.87%
Theoretical Best
Healthcare Medical
$4.72M
$4.13M – $5.51M
NOI $330,359 @ 7.0% cap · market cap 10.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
84
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 93420, CA
30,540
Population
13,823
Households
2.2
Avg Household Size
49
Median Age
44%
College-Educated
95%
High-School Grad
197.4 sq mi
ZIP Area
155
Density / Sq Mi
$106,718
Median Household Income
$51,990
Median Earnings
$2,025
Median Rent
$872,200
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Warehouse - 12,000 sq ft warehouse on 1.86 acres for sale.
Where is this warehouse located?
The property is located at 2115 Willow Rd Arroyo Grande, CA.
What is the asking price?
The asking price for this property is $3,150,000.
What are key features of this property?
This property features: 100% Leased Investment Property; High Current Cap Rate: 8.8%; Potential for Increased Cap Rate: Proforma 9.1%
