Industrial Shop and Office
For Sale
Contact for pricing
227 Kearney Ext, Watsonville, CA 95076
Industrial Park-zoned facility with shop and office space plus canopy-covered parking shop area and included personal property.
Property Size13,536 SF
Price / SF$295.14
Days on Market49
Property Features for 227 Kearney Ext
General Information
Standard status
Active
Size
13,536 SF
Property subtype
INDUSTRIAL
Listing Agency:
J.R. Parrish Commercial Real Estate
(831) 588-8383
Listed By:
Rachael Shelton
Source:
Moodyscre
Added: Jul 9
Changed: Aug 14
Last Checked: Aug 26 at 3:30PM
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 J.R. Parrish Commercial Real Estate
Investment Insights
Based on property information with market context.
This for-sale industrial property includes 13,536 SF of shop and office space, along with a 3,573 SF canopy parking shop space. The offering also notes that personal property is included. The property is zoned Industrial Park.
The address is 227 Kearney Ext, Watsonville, CA 95076.
The building is configured to support shop operations with dedicated office space, supplemented by covered canopy parking for additional shop use.
The address is 227 Kearney Ext, Watsonville, CA 95076.
The building is configured to support shop operations with dedicated office space, supplemented by covered canopy parking for additional shop use.
Key Highlights
- Zoned Industrial Park facility with 13,536 SF shop and office space
- Includes 3,573 SF canopy‑covered parking shop space
- Personal property included with the sale
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
$270,896
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
6.78%
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%
$5,417,920
$5.4M
Cap Rate 7%
$3,869,943
$3.9M
Cap Rate 9%
$3,009,956
$3.0M
Market Conditions
NOI Build-Up for 13,536 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
$406.1K $30.00/SF
− Vacancy
−$19.1K −$1.41/SF
EGI
$387.0K $28.59/SF
− OpEx
−$116.1K −$8.58/SF
NOI
$270.9K $20.01/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$30.00 /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%
$5,417,920
Cap Rate 7%
$3,869,943
Cap Rate 9%
$3,009,956
Alternative Uses
Best Use
Industrial
$3.87M
$3.39M – $4.51M
NOI $270,896 @ 7.0% cap · market cap 6.78%
Second Best
Flex RnD
$2.16M
$1.89M – $2.52M
NOI $150,928 @ 7.0% cap · market cap 3.78%
Theoretical Best
Retail
$7.74M
$6.77M – $9.03M
NOI $541,792 @ 7.0% cap · market cap 13.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,553
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95076, CA
84,433
Population
26,488
Households
3.2
Avg Household Size
35
Median Age
19%
College-Educated
72%
High-School Grad
135.1 sq mi
ZIP Area
625
Density / Sq Mi
$86,685
Median Household Income
$36,077
Median Earnings
$1,851
Median Rent
$767,200
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?
Flex space - Industrial Park-zoned facility with shop and office space plus canopy-covered parking shop area and included personal property.
Where is this flex space located?
The property is located at 227 Kearney Ext Watsonville, CA.
What is the asking price?
The asking price for this property is $3,995,000.
What are key features of this property?
This property features: Zoned Industrial Park facility with 13,536 SF shop and office space; Includes 3,573 SF canopy‑covered parking shop space; Personal property included with the sale
