Orchard Mesa Commercial
For Sale
$565,000
2706 Highway 50, Grand Junction, CO 81503
Turnkey commercial property with drive-thru, high visibility, and expansion potential.
Property Size1,440 SF
Lot Size0.60 Acres
Price / SF$392.36
Days on Market90
Property Features for 2706 Highway 50
General Information
Standard status
Active
Size
1,440 SF
Lot size
0.60 Acres
Taxes and HOA fees
Annual Taxes
$7,021
Listing Agency:
S.U.R.E., LLC
(970) 778-5083
Listed By:
KATIE DAVIS · License #FA.100094662
(970) 778-5083
Source:
Exprealty
Added: May 27
Changed: Aug 23
Last Checked: Aug 24 at 1:13PM
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 S.U.R.E., LLC
Investment Insights
Based on property information with market context.
This commercial property is located at the intersection of residential and business areas in Orchard Mesa. The property includes a drive-thru window, suitable for financial services, specialty retail, or quick-service concepts. The building has 1,440 square feet of space and features a waiting area, a large open office bullpen, and three built-in teller/service stations. It also includes two private offices, a dedicated IT room, a private restroom, and a dedicated break room. The property is situated on a 0.60-acre lot with MU-2 zoning and direct Highway 50 exit access. There are 14 dedicated paved parking spaces. The property has high-visibility signage and additional land for expansion.
Key Highlights
- Prime location at the intersection of residential and business areas in Orchard Mesa with direct Highway 50 exit access.
- Highly desirable drive‑thru window suitable for various business types.
- Generous 0.60‑acre lot with MU‑2 zoning offering expansion potential.
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
$21,161
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
3.75%
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%
$423,220
$423.2K
Cap Rate 7%
$302,300
$302.3K
Cap Rate 9%
$235,122
$235.1K
Market Conditions
NOI Build-Up for 1,440 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
$30.6K $21.24/SF
− Vacancy
−$2.4K −$1.65/SF
EGI
$28.2K $19.59/SF
− OpEx
−$7.1K −$4.90/SF
NOI
$21.2K $14.70/SF
Area
Mesa County, CO
Vacancy
7.75%
Lease Rate
$21.24 /SF/Yr
Expense Ratio
25.00%
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%
$423,220
Cap Rate 7%
$302,300
Cap Rate 9%
$235,122
Alternative Uses
Best Use
Specialty Retail
$302.3K
$264.5K – $352.7K
NOI $21,161 @ 7.0% cap · market cap 3.75%
Second Best
Mixed Use
$92.5K
$81.0K – $107.9K
NOI $6,476 @ 7.0% cap · market cap 1.15%
Theoretical Best
Healthcare Medical
$2.73M
$2.39M – $3.19M
NOI $191,290 @ 7.0% cap · market cap 33.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
314
Businesses Nearby
Explore this area
Business Placement
Demographics for 81503, CO
16,121
Population
6,567
Households
2.5
Avg Household Size
42
Median Age
23%
College-Educated
92%
High-School Grad
22.0 sq mi
ZIP Area
733
Density / Sq Mi
$71,681
Median Household Income
$36,918
Median Earnings
$1,015
Median Rent
$307,600
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?
Mixed-use property - Turnkey commercial property with drive-thru, high visibility, and expansion potential.
Where is this mixed-use property located?
The property is located at 2706 Highway 50 Grand Junction, CO.
What is the asking price?
The asking price for this property is $565,000.
What are key features of this property?
This property features: Prime location at the intersection of residential and business areas in Orchard Mesa with direct Highway 50 exit access.; Highly desirable drive‑thru window suitable for various business types.; Generous 0.60‑acre lot with MU‑2 zoning offering expansion potential.
