Two-Story Retail Suites with Exterior
For Sale
Contact for pricing
2725 Shelter Island Dr, San Diego, CA 92106
Elevator-served two-story retail suites with individual exterior entrances along Shelter Island Drive, backed by nearby public parking.
Property Size10,858 SF
Price / SF$640.08
Days on Market114
Property Features for 2725 Shelter Island Dr
General Information
Standard status
Active
Size
10,858 SF
Property subtype
RETAIL
Zoning
CV-1-2
Building Details
Stories
2
Tenancy
Multi
Listing Agency:
Lee & Associates | North San Diego County
(760) 929-9700
Listed By:
Jeff Abramson · License #00956805
(760) 505-5301
Source:
Moodyscre
Added: May 25
Changed: Sep 2
Last Checked: Sep 14 at 10:20AM
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 | North San Diego County
Investment Insights
Based on property information with market context.
Ground-floor retail and commercial suites offer individual exterior entrances, with an elevator-served, two-story configuration. The property is set up for storefront-level access and supports prominent signage and strong street presence.
The building is located on prime frontage along Shelter Island Drive, the gateway to San Diego Harbor. Adjacent public parking includes 80+ free spaces plus Port Authority metered parking. The property is walkable to marinas, yacht clubs, hotels, restaurants, and waterfront amenities.
Flexible CV-1-2 Commercial Visitor zoning provides additional leasing adaptability for compatible retail and commercial uses.
The building is located on prime frontage along Shelter Island Drive, the gateway to San Diego Harbor. Adjacent public parking includes 80+ free spaces plus Port Authority metered parking. The property is walkable to marinas, yacht clubs, hotels, restaurants, and waterfront amenities.
Flexible CV-1-2 Commercial Visitor zoning provides additional leasing adaptability for compatible retail and commercial uses.
Key Highlights
- Prime frontage along Shelter Island Drive, the gateway to San Diego Harbor
- Adjacent public parking: 80+ free spaces plus Port Authority metered parking
- Ground‑floor retail/commercial suites with individual exterior entrances
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
$262,102
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
3.77%
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%
$5,242,040
$5.2M
Cap Rate 7%
$3,744,314
$3.7M
Cap Rate 9%
$2,912,244
$2.9M
Market Conditions
NOI Build-Up for 10,858 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
$390.9K $36.00/SF
− Vacancy
−$16.5K −$1.52/SF
EGI
$374.4K $34.48/SF
− OpEx
−$112.3K −$10.35/SF
NOI
$262.1K $24.14/SF
Area
San Diego, CA
Vacancy
4.21%
Lease Rate
$36.00 /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%
$5,242,040
Cap Rate 7%
$3,744,314
Cap Rate 9%
$2,912,244
Alternative Uses
Best Use
Retail
$3.74M
$3.28M – $4.37M
NOI $262,102 @ 7.0% cap · market cap 3.77%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.29M
$3.75M – $5.00M
NOI $300,202 @ 7.0% cap · market cap 4.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,578
Businesses Nearby
101k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 53%
Shops & Services 29%
Hotels & Casinos 18%
Starbucks
Dining
16,466 visits/mo
0.5 miles
Better Buzz Coffee Roasters
Dining
14,596 visits/mo
0.4 miles
Shell
Shops & Services
11,069 visits/mo
0.4 miles
Jack in the Box
Dining
9,408 visits/mo
0.3 miles
Denny's
Dining
7,827 visits/mo
0.5 miles
Demographics for 92106, CA
20,214
Population
7,908
Households
2.6
Avg Household Size
39
Median Age
63%
College-Educated
97%
High-School Grad
5.7 sq mi
ZIP Area
3,546
Density / Sq Mi
$127,209
Median Household Income
$55,428
Median Earnings
$2,231
Median Rent
$1,359,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in San Diego, CA
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Frequently Asked Questions
What type of property is this?
Storefront property - Elevator-served two-story retail suites with individual exterior entrances along Shelter Island Drive, backed by nearby public parking.
Where is this storefront property located?
The property is located at 2725 Shelter Island Dr San Diego, CA.
What is the asking price?
The asking price for this property is $6,950,000.
What are key features of this property?
This property features: Prime frontage along Shelter Island Drive, the gateway to San Diego Harbor; Adjacent public parking: 80+ free spaces plus Port Authority metered parking; Ground‑floor retail/commercial suites with individual exterior entrances
