Two-Suite Office
New
For Sale
$1,005,000
27174 Newport Road, Menifee, CA 92584
Currently leased office suites offer flexible occupancy or leasing options for an owner-user or investor.
Property Size5,076 SF
Price / SF$392.89
Days on Market7
Property Features for 27174 Newport Road
General Information
Standard status
Active
Size
5,076 SF
Net Rentable
2,558 SF
Property subtype
Office
Additional Details
Office Units
2
Building Details
Building Size
5,076 SF
Listing Agency:
Lee & Associates - Temecula Valley
(951) 445-4503
Listed By:
Mike Hanna · License #CalDRE #1456055
Source:
Lee-associates
Added: Aug 15
Changed: Aug 19
Last Checked: Aug 21 at 4:55AM
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 Lee & Associates - Temecula Valley
Investment Insights
Based on property information with market context.
This office property includes two suites totaling 2,558 RSF, with the spaces available individually or together. Suite 3 contains 1,213 SF, while Suite 4 provides 1,345 SF. Both suites are currently leased, and either party may terminate the lease with 90 days' written notice.
Located at 27174 Newport Road in Menifee, California, the property supports multiple occupancy approaches through its separate suite configuration. An owner-user can occupy one suite while retaining the other for leasing, or both suites can be considered together.
Located at 27174 Newport Road in Menifee, California, the property supports multiple occupancy approaches through its separate suite configuration. An owner-user can occupy one suite while retaining the other for leasing, or both suites can be considered together.
Key Highlights
- Two office suites totaling 2,558 RSF
- Suite 3 measures 1,213 SF
- Suite 4 measures 1,345 SF
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
$33,980
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
3.38%
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%
$679,600
$679.6K
Cap Rate 7%
$485,429
$485.4K
Cap Rate 9%
$377,556
$377.6K
Market Conditions
NOI Build-Up for 2,558 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
$55.3K $21.60/SF
− Vacancy
−$9.9K −$3.89/SF
EGI
$45.3K $17.71/SF
− OpEx
−$11.3K −$4.43/SF
NOI
$34.0K $13.28/SF
Area
Menifee, CA
Vacancy
18.00%
Lease Rate
$21.60 /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%
$679,600
Cap Rate 7%
$485,429
Cap Rate 9%
$377,556
Alternative Uses
Best Use
Office B
$485.4K
$424.8K – $566.3K
NOI $33,980 @ 7.0% cap · market cap 3.38%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$648.3K
$567.3K – $756.4K
NOI $45,381 @ 7.0% cap · market cap 4.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Location Intelligence
Trade Area within ½ mile
940
Businesses Nearby
Explore this area
Business Placement
Demographics for 92584, CA
55,517
Population
18,480
Households
3
Avg Household Size
36
Median Age
28%
College-Educated
92%
High-School Grad
29.1 sq mi
ZIP Area
1,908
Density / Sq Mi
$113,470
Median Household Income
$53,466
Median Earnings
$2,301
Median Rent
$562,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Currently leased office suites offer flexible occupancy or leasing options for an owner-user or investor.
Where is this office units located?
The property is located at 27174 Newport Road Menifee, CA.
What is the asking price?
The asking price for this property is $1,005,000.
What are key features of this property?
This property features: Two office suites totaling 2,558 RSF; Suite 3 measures 1,213 SF; Suite 4 measures 1,345 SF
