Petco NNN Lease
For Sale
Contact for pricing
Pending
2545 W Florida Ave, Hemet, CA 92545
Petco operated here since 2005 with new 12-year extension.
Property Size13,500 SF
Days on Market200
Property Features for 2545 W Florida Ave
General Information
Standard status
Pending
Size
13,500 SF
Property subtype
Retail
Lease Type
NNN
Net Operating Income
$199,125
Building Details
Year Built
2005
Tenancy
Single
Listing Agency:
CBRE - Orange County
(949) 769-4855
Listed By:
David Swerdlow · License #02104458
Source:
Crexi
Added: Feb 4
Changed: Aug 23
Last Checked: Aug 23 at 2:18PM
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 CBRE - Orange County
Investment Insights
Based on property information with market context.
The property is occupied by Petco Health and Wellness Company, Inc., a leading pet specialty retailer with approximately 1,500 locations throughout the United States, Puerto Rico, and Mexico. Petco has operated at this location since 2005. Petco recently executed a new 12-year NNN lease extension expiring in October 2037, with three additional 5-year renewal options. The property is situated along W Florida Ave, which sees approximately 41,800 cars per day. The location benefits from a mix of co-tenants, including Smart & Final Extra!, Applebee’s, and Edward Jones. Adjacent retailers include The Home Depot, Target, Lowe’s, Ross Dress for Less, Stater Bros., In-N-Out Burger, Sprouts, Grocery Outlet, Raising Cane’s, McDonald’s, Vallarta Supermarkets, and El Pollo Loco.
Key Highlights
- New 12‑year NNN lease extension to 2037 with options, demonstrating long‑term tenant commitment.
- Corporate tenancy with Petco Health and Wellness Company, Inc. (Nasdaq: WOOF), a leading national retailer.
- High‑traffic location on W Florida Ave (±41,800 CPD), Hemet's dominant retail street.
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
$193,506
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
5.54%
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%
$3,870,120
$3.9M
Cap Rate 7%
$2,764,371
$2.8M
Cap Rate 9%
$2,150,067
$2.2M
Market Conditions
NOI Build-Up for 13,500 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
$291.6K $21.60/SF
− Vacancy
−$15.2K −$1.12/SF
EGI
$276.4K $20.48/SF
− OpEx
−$82.9K −$6.14/SF
NOI
$193.5K $14.33/SF
Area
Riverside County, CA
Vacancy
5.20%
Lease Rate
$21.60 /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%
$3,870,120
Cap Rate 7%
$2,764,371
Cap Rate 9%
$2,150,067
Alternative Uses
Best Use
Retail
$2.76M
$2.42M – $3.23M
NOI $193,506 @ 7.0% cap · market cap 5.54%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.04M
$3.54M – $4.72M
NOI $283,106 @ 7.0% cap · market cap 8.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
828
Businesses Nearby
13k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
GO Car Wash
Shops & Services
11,812 visits/mo
0.4 miles
Jiffy Lube
Shops & Services
926 visits/mo
0.5 miles
Demographics for 92545, CA
44,072
Population
17,533
Households
2.5
Avg Household Size
45
Median Age
17%
College-Educated
84%
High-School Grad
29.7 sq mi
ZIP Area
1,484
Density / Sq Mi
$59,575
Median Household Income
$41,732
Median Earnings
$1,778
Median Rent
$334,900
Median Home Value
Market
Vacancy Rate% for Retail 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?
Retail space - Petco operated here since 2005 with new 12-year extension.
Where is this retail space located?
The property is located at 2545 W Florida Ave Hemet, CA.
What is the asking price?
The asking price for this property is $3,495,000.
What are key features of this property?
This property features: New 12‑year NNN lease extension to 2037 with options, demonstrating long‑term tenant commitment.; Corporate tenancy with Petco Health and Wellness Company, Inc. (Nasdaq: WOOF), a leading national retailer.; High‑traffic location on W Florida Ave (±41,800 CPD), Hemet's dominant retail street.
