Multi-Tenant Shopping
New
For Sale
$3,399,000
2525 Soquel DR A, Santa Cruz, CA 95065
COMMERCIAL - SANTA CRUZ, CA
Property Size7,500 SF
Lot Size0.60 Acres
Price / SF$453.20
Days on Market7
Property Features for 2525 Soquel DR A
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C-1
Parking
35
Parking features
Off Street, Guest
Subdivision
Soquel
Standard status
Active
Lot size
0.60 Acres
Utilities
Heating system
Electric (Heating), Natural Gas, Forced Air
Water source
Public
Building Details
Year built
1966
Flooring type
Tile, Carpet, Hardwood, Linoleum
Roof type
Foam
Listing Agency:
David Lyng Real Estate
(831) 438-5700
Listed By:
Gina Carling · License #01480003
(831) 818-0771
Added: Aug 3
Changed: Aug 4
Last Checked: Aug 9 at 12:06AM
MLS# ML82044696
Copyright © 2026 MLS Listings, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
The property at 2525 Soquel Drive is a multi-tenant shopping center with 7,500 square feet of gross leasable area. Built in 1966, the building offers carpet, linoleum, tile, and hardwood flooring, along with forced-air, natural-gas, and electric heating. Public water service and a foam roof are also in place. Three long-term tenants currently occupy the property.
Access is provided from both Soquel Drive and Winkle Avenue, with a 35-space parking area serving tenants and visitors. The site fronts Soquel Drive, where estimated traffic exceeds 20,000 vehicles per day. C-1 zoning supports the property's existing commercial configuration and provides a defined framework for future evaluation.
Access is provided from both Soquel Drive and Winkle Avenue, with a 35-space parking area serving tenants and visitors. The site fronts Soquel Drive, where estimated traffic exceeds 20,000 vehicles per day. C-1 zoning supports the property's existing commercial configuration and provides a defined framework for future evaluation.
Key Highlights
- 7,500 SF of gross leasable area in a multi‑tenant commercial building
- Three long‑term tenants currently occupy the property
- 35‑space parking lot with access from Soquel Drive and Winkle Avenue
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
$300,195
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
8.83%
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%
$6,003,900
$6.0M
Cap Rate 7%
$4,288,500
$4.3M
Cap Rate 9%
$3,335,500
$3.3M
Market Conditions
NOI Build-Up for 7,500 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
$450.0K $60.00/SF
− Vacancy
−$21.2K −$2.82/SF
EGI
$428.9K $57.18/SF
− OpEx
−$128.7K −$17.15/SF
NOI
$300.2K $40.03/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$60.00 /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%
$6,003,900
Cap Rate 7%
$4,288,500
Cap Rate 9%
$3,335,500
Alternative Uses
Best Use
Retail
$4.29M
$3.75M – $5.00M
NOI $300,195 @ 7.0% cap · market cap 8.83%
Second Best
Specialty Retail
$4.14M
$3.62M – $4.82M
NOI $289,474 @ 7.0% cap · market cap 8.52%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20,000 VPD
Traffic count
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,677
Businesses Nearby
92k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 57%
Shops & Services 31%
Office Supplies 9%
Dining 3%
Marshalls
Apparel
47,056 visits/mo
0.4 miles
7-Eleven
Shops & Services
10,985 visits/mo
0.2 miles
Wells Fargo
Shops & Services
9,021 visits/mo
0.2 miles
Staples
Office Supplies
7,997 visits/mo
0.4 miles
West Marine
Apparel
3,879 visits/mo
0.4 miles
Demographics for 95065, CA
8,444
Population
3,090
Households
2.7
Avg Household Size
46
Median Age
50%
College-Educated
96%
High-School Grad
10.9 sq mi
ZIP Area
775
Density / Sq Mi
$142,768
Median Household Income
$52,963
Median Earnings
$2,618
Median Rent
$1,192,200
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?
Shopping center - C-1-zoned commercial property with dual-street access and established occupancy by three tenants.
Where is this shopping center located?
The property is located at 2525 Soquel DR A Santa Cruz, CA.
What is the asking price?
The asking price for this property is $3,399,000.
What are key features of this property?
This property features: 7,500 SF of gross leasable area in a multi‑tenant commercial building; Three long‑term tenants currently occupy the property; 35‑space parking lot with access from Soquel Drive and Winkle Avenue
