Three-Unit Commercial Investment
For Sale
$749,000
2131 10th Street, Los Osos, CA 93402
Three-unit commercial building with one leased storefront and two vacant spaces for lease-up or owner occupancy.
Property Size2,550 SF
Price / SF$293.73
Days on Market88
Property Features for 2131 10th Street
General Information
Standard status
Active
Size
2,550 SF
Property subtype
Mixed Use
Zoning
CR
Additional Details
Highway Access
Yes
Building Details
Year Built
1979
Tenancy
Multi
Listing Agency:
Invest SLO
(805) 709-7143
Listed By:
Abel Contreras · License #2062620
Source:
Xome
Added: May 13
Changed: Jul 10
Last Checked: Aug 7 at 10:48AM
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 Invest SLO
Investment Insights
Based on property information with market context.
This is an income-producing three-unit commercial property totaling approximately 2,550 square feet. The building includes three commercial units in a single CR (Commercial Retail) zoned setting, with one established frame shop tenant currently generating in-place income. Two additional units are vacant, providing an immediate opportunity for new leasing or for an owner to occupy one or more spaces.
The property is located at 2131 10th Street in Los Osos and is positioned along a well-established commercial corridor. Public remarks indicate convenient access to Highway 1 and nearby destinations including Morro Bay and Baywood Park. The CR zoning is described as flexible, supporting a range of retail, office, and professional service uses.
For tenants, the vacant units can support new retail or professional office operations consistent with CR zoning. For buyers and investors, the combination of an operating tenant plus two available spaces may appeal to those looking to stabilize income while pursuing lease-up. The listing notes the remaining space could be leased at estimated market rents of approximately $2.00/SF, subject to execution of leasing strategy and tenant qualification.
The property is located at 2131 10th Street in Los Osos and is positioned along a well-established commercial corridor. Public remarks indicate convenient access to Highway 1 and nearby destinations including Morro Bay and Baywood Park. The CR zoning is described as flexible, supporting a range of retail, office, and professional service uses.
For tenants, the vacant units can support new retail or professional office operations consistent with CR zoning. For buyers and investors, the combination of an operating tenant plus two available spaces may appeal to those looking to stabilize income while pursuing lease-up. The listing notes the remaining space could be leased at estimated market rents of approximately $2.00/SF, subject to execution of leasing strategy and tenant qualification.
Key Highlights
- Three‑unit commercial building with 1 leased storefront and 2 vacant units for lease‑up or owner occupancy
- CR (Commercial Retail) zoning at 2131 10th Street with flexible use for retail, office, and professional services
- Established frame shop tenant provides in‑place income, with 2 additional units available for immediate lease‑up
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
$41,426
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
5.53%
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%
$828,520
$828.5K
Cap Rate 7%
$591,800
$591.8K
Cap Rate 9%
$460,289
$460.3K
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
$61.2K $24.00/SF
− Vacancy
−$2.0K −$0.79/SF
EGI
$59.2K $23.21/SF
− OpEx
−$17.8K −$6.96/SF
NOI
$41.4K $16.25/SF
Area
San Luis Obispo County, CA
Vacancy
3.30%
Lease Rate
$24.00 /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%
$828,520
Cap Rate 7%
$591,800
Cap Rate 9%
$460,289
Alternative Uses
Best Use
Retail
$591.8K
$517.8K – $690.4K
NOI $41,426 @ 7.0% cap · market cap 5.53%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$1.00M
$877.5K – $1.17M
NOI $70,201 @ 7.0% cap · market cap 9.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
627
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 93402, CA
14,500
Population
6,586
Households
2.2
Avg Household Size
49
Median Age
50%
College-Educated
94%
High-School Grad
27.7 sq mi
ZIP Area
523
Density / Sq Mi
$103,839
Median Household Income
$43,002
Median Earnings
$1,909
Median Rent
$729,200
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 - Three-unit commercial building with one leased storefront and two vacant spaces for lease-up or owner occupancy.
Where is this storefront property located?
The property is located at 2131 10th Street Los Osos, CA.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: Three‑unit commercial building with 1 leased storefront and 2 vacant units for lease‑up or owner occupancy; CR (Commercial Retail) zoning at 2131 10th Street with flexible use for retail, office, and professional services; Established frame shop tenant provides in‑place income, with 2 additional units available for immediate lease‑up
