Leased Industrial Flex
For Sale
Contact for pricing
2115 Willow Rd, Arroyo Grande, CA
12,000 sq ft industrial flex space, fully leased.
Property Size12,000 SF
Lot Size1.73 Acres
Price / SF$262.50
Days on Market346
Property Features for 2115 Willow Rd
General Information
Standard status
Active
Size
12,000 SF
Lot size
1.73 Acres
Property subtype
INDUSTRIAL
Listing Agency:
McCarty Davis Commercial Real Estate
(805) 543-1801
Listed By:
Steve McCarty · License #01843738
Source:
Moodyscre
Added: Aug 29, 2025
Changed: Aug 8
Last Checked: Aug 8 at 12:27PM
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 12,000 square foot building is located in Arroyo Grande, CA, and is zoned for industrial use. The property, situated on a 1.86-acre parcel, features six units and is currently 100% leased. The building is equipped with a sprinkler system. Water is supplied by an on-site well, and the property utilizes a septic system.
Key Highlights
- 100% Leased: Enjoy immediate rental income.
- Building Size: 12,000 sq. ft. of industrial space.
- Parcel Size: 1.86 acres with expansion potential.
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
$148,809
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
4.72%
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%
$2,976,180
$3.0M
Cap Rate 7%
$2,125,843
$2.1M
Cap Rate 9%
$1,653,433
$1.7M
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
$240.5K $20.04/SF
− Vacancy
−$11.5K −$0.96/SF
EGI
$228.9K $19.08/SF
− OpEx
−$80.1K −$6.68/SF
NOI
$148.8K $12.40/SF
Area
San Luis Obispo County, CA
Vacancy
4.80%
Lease Rate
$20.04 /SF/Yr
Expense Ratio
35.00%
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%
$2,976,180
Cap Rate 7%
$2,125,843
Cap Rate 9%
$1,653,433
Alternative Uses
Best Use
Flex RnD
$2.13M
$1.86M – $2.48M
NOI $148,809 @ 7.0% cap · market cap 4.72%
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
Balanced
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - 12,000 sq ft industrial flex space, fully leased.
Where is this flex space 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: Enjoy immediate rental income.; Building Size: 12,000 sq. ft. of industrial space.; Parcel Size: 1.86 acres with expansion potential.
