Three-Unit Industrial
For Sale
$2,550,000
2754 Downhill Drive, Steamboat Springs, CO 80487
Flexible three-unit build with mezzanine space and bathrooms throughout, offering multiple occupancy and leasing configurations.
Property Size7,195 SF
Lot Size0.83 Acres
Price / SF$354.41
Days on Market82
Property Features for 2754 Downhill Drive
General Information
Standard status
Active
Size
7,195 SF
Lot size
0.83 Acres
Property subtype
General Commercial
Zoning
Industrial
Additional Details
Office Units
3
Taxes and HOA fees
Annual Taxes
$5,402
Amenities
3
Parking. Corner Lot.
Parking Pad.
Corner, Community Maintenance, Paved Road.
Building Details
Year Built
1995
Tenancy
Multi
Listing Agency:
Steamboat Sotheby's International Realty
(970) 879-8100
Listed By:
Annamarie Shunny
Source:
Xome
Added: Jun 1
Changed: Aug 12
Last Checked: Aug 21 at 4:39AM
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 Steamboat Sotheby's International Realty
Investment Insights
Based on property information with market context.
This offering consists of a three-unit commercial condominium in the Dover Commercial Building, sold as Units A, B, and C. The property is currently configured as one assembled space with connecting doorways, while the original demising walls remain in place for buyers who want to keep the units combined or convert back to three separately deeded condominiums. Each unit includes a full main level plus a second-level mezzanine, with bathrooms on every level and within every unit. The concrete block building features a built-up flat roof, stucco exterior, thermal windows, central air, and gas heat throughout, along with concrete floors and a practical, unfinished interior suitable for tenant or owner customization.
Positioned as a corner property in Steamboat Springs’ Elk River Road Business Park, the building has street frontage on both Downhill Drive and Jacob Circle. Access is described as convenient from RCR 129, with close proximity to downtown Steamboat. The site includes ample on-site parking, generous on-site storage, and practical vehicular circulation for deliveries and daily operations.
With a configuration that can function as one larger workplace or as multiple independent units, the property suits a range of users and ownership strategies. The building’s history of office, warehouse, showroom, and live-work uses aligns with the stated Industrial zone district allowance for live-work, supporting flexible tenanting and end-user occupancy options.
Positioned as a corner property in Steamboat Springs’ Elk River Road Business Park, the building has street frontage on both Downhill Drive and Jacob Circle. Access is described as convenient from RCR 129, with close proximity to downtown Steamboat. The site includes ample on-site parking, generous on-site storage, and practical vehicular circulation for deliveries and daily operations.
With a configuration that can function as one larger workplace or as multiple independent units, the property suits a range of users and ownership strategies. The building’s history of office, warehouse, showroom, and live-work uses aligns with the stated Industrial zone district allowance for live-work, supporting flexible tenanting and end-user occupancy options.
Key Highlights
- 3‑unit commercial condominium (Units A, B, and C) in the Dover Commercial Building, totaling 7,195 SF on a 0.83‑acre corner lot
- Corner positioning with street frontage on Downhill Drive and Jacob Circle and parking pad for on‑site parking
- Units currently assembled with connecting doorways; original demising walls remain in place for keeping combined or converting back to three separate units
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
$201,438
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
7.90%
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%
$4,028,760
$4.0M
Cap Rate 7%
$2,877,686
$2.9M
Cap Rate 9%
$2,238,200
$2.2M
Market Conditions
NOI Build-Up for 7,195 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
$252.1K $35.04/SF
− Vacancy
−$15.1K −$2.10/SF
EGI
$237.0K $32.94/SF
− OpEx
−$35.5K −$4.94/SF
NOI
$201.4K $28.00/SF
Area
Routt County, CO
Vacancy
6.00%
Lease Rate
$35.04 /SF/Yr
Expense Ratio
15.00%
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%
$4,028,760
Cap Rate 7%
$2,877,686
Cap Rate 9%
$2,238,200
Alternative Uses
Best Use
Warehouse
$2.88M
$2.52M – $3.36M
NOI $201,438 @ 7.0% cap · market cap 7.90%
Second Best
Flex RnD
$1.62M
$1.42M – $1.89M
NOI $113,645 @ 7.0% cap · market cap 4.46%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
545
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 80487, CO
18,209
Population
13,231
Households
1.4
Avg Household Size
42
Median Age
57%
College-Educated
97%
High-School Grad
795.8 sq mi
ZIP Area
23
Density / Sq Mi
$106,837
Median Household Income
$50,551
Median Earnings
$1,927
Median Rent
$915,900
Median Home Value
Market
Vacancy Rate% for Industrial in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Flexible three-unit build with mezzanine space and bathrooms throughout, offering multiple occupancy and leasing configurations.
Where is this flex space located?
The property is located at 2754 Downhill Drive Steamboat Springs, CO.
What is the asking price?
The asking price for this property is $2,550,000.
What are key features of this property?
This property features: 3‑unit commercial condominium (Units A, B, and C) in the Dover Commercial Building, totaling 7,195 SF on a 0.83‑acre corner lot; Corner positioning with street frontage on Downhill Drive and Jacob Circle and parking pad for on‑site parking; Units currently assembled with connecting doorways; original demising walls remain in place for keeping combined or converting back to three separate units
