Freeway-Fronting Retail
For Sale
$9,750,000
25322 El Paseo, Mission Viejo, CA 92691
Large-format retail property with on-site parking and established retail anchors in the surrounding trade area.
Property Size36,032 SF
Price / SF$270.83
Days on Market45
Property Features for 25322 El Paseo
General Information
Standard status
Active
Size
36,032 SF
Property subtype
Retail
Additional Details
Traffic Count
331,000 vehicles/day
Building Details
Building Size
36,032 SF
Listing Agency:
SRS Real Estate Partners Newport Beach
(858) 243-3520
Listed By:
Terrison Quinn · License #LICENSENO.01912215
(858) 243-3520
Source:
Srsre
Added: Jul 17
Changed: Aug 29
Last Checked: Aug 29 at 2:30PM
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 SRS Real Estate Partners Newport Beach
Investment Insights
Based on property information with market context.
This approximately ±36K SF retail box offers a substantial format for an owner-user or investor. The property includes ample on-site parking and is positioned for retail occupancy or lease-up, based on the available property information.
The site fronts the I-5 freeway, which carries more than 331K cars per day. Best Buy, Michaels, and World Market contribute established retail presence in the surrounding trade area. The area is described as an infill market with average household incomes exceeding $164,000.
The site fronts the I-5 freeway, which carries more than 331K cars per day. Best Buy, Michaels, and World Market contribute established retail presence in the surrounding trade area. The area is described as an infill market with average household incomes exceeding $164,000.
Key Highlights
- ±36K SF retail box
- Frontage along the I‑5 freeway
- I‑5 traffic reported at over 331K cars per day
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
$817,932
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
8.39%
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%
$16,358,640
$16.4M
Cap Rate 7%
$11,684,743
$11.7M
Cap Rate 9%
$9,088,133
$9.1M
Market Conditions
NOI Build-Up for 36,000 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
$1.21M $33.60/SF
− Vacancy
−$41.1K −$1.14/SF
EGI
$1.17M $32.46/SF
− OpEx
−$350.5K −$9.74/SF
NOI
$817.9K $22.72/SF
Area
Orange County, CA
Vacancy
3.40%
Lease Rate
$33.60 /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%
$16,358,640
Cap Rate 7%
$11,684,743
Cap Rate 9%
$9,088,133
Alternative Uses
Best Use
Retail
$11.68M
$10.22M – $13.63M
NOI $817,932 @ 7.0% cap · market cap 8.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$12.09M
$10.58M – $14.11M
NOI $846,418 @ 7.0% cap · market cap 8.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
331,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
1,107
Businesses Nearby
230k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 33%
Shops & Services 31%
Home Improvements & Furnishings 16%
Electronics 15%
World Market
Home Improvements & Furnishings
35,348 visits/mo
0.0 miles
Best Buy
Electronics
35,208 visits/mo
0.1 miles
Michaels
Shops & Services
32,878 visits/mo
0.2 miles
McDonald's
Dining
24,697 visits/mo
0.3 miles
Wienerschnitzel
Dining
14,960 visits/mo
0.3 miles
Demographics for 92691, CA
47,918
Population
16,673
Households
2.9
Avg Household Size
44
Median Age
47%
College-Educated
93%
High-School Grad
8.8 sq mi
ZIP Area
5,445
Density / Sq Mi
$135,779
Median Household Income
$64,902
Median Earnings
$2,517
Median Rent
$916,800
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?
Retail space - Large-format retail property with on-site parking and established retail anchors in the surrounding trade area.
Where is this retail space located?
The property is located at 25322 El Paseo Mission Viejo, CA.
What is the asking price?
The asking price for this property is $9,750,000.
What are key features of this property?
This property features: ±36K SF retail box; Frontage along the I‑5 freeway; I‑5 traffic reported at over 331K cars per day
