Industrial Building Leased to
For Sale
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27635 Diaz Rd, Temecula, CA 92590
Industrial building in Temecula, CA, leased to Tesla, Inc.
Property Size40,012 SF
Price / SF$450.84
Days on Market257
Property Features for 27635 Diaz Rd
General Information
Standard status
Active
Size
40,012 SF
Total Parking Spaces
145
Property subtype
Industrial
Zoning
LI (Light Industrial)
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Building Details
Year Built
1985
Year Renovated
2025
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
CBRE - Orange County
(858) 546-4622
Listed By:
Austin Reuland · License #02101405
Source:
Crexi
Added: Nov 26, 2025
Changed: Aug 8
Last Checked: Aug 10 at 9:55AM
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 CBRE - Orange County
Investment Insights
Based on property information with market context.
This offering presents an opportunity to acquire a fully improved industrial building in Temecula, CA. The property was turn-keyed for Tesla, Inc., operating as a collision center servicing the Southwest Riverside County population. The in-place lease spans nearly 12 more years, generating a net income of $968,083 in the first year. The lease includes a three-percent annual increase in rent. The property is suitable for auto shops, automotive properties, retail spaces, NNN properties, specialty properties, and general commercial real estate. The building has a property size of 40012 square feet.
Key Highlights
- Long‑term lease with Tesla, Inc., offering durable cash flow.
- Investment‑grade tenant: Tesla, Inc. (Moody’s: Baa3), a leading global brand.
- Significant first‑year bonus depreciation opportunity (estimated ±$2.9 million deduction).
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
$582,557
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
3.23%
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%
$11,651,140
$11.7M
Cap Rate 7%
$8,322,243
$8.3M
Cap Rate 9%
$6,472,856
$6.5M
Market Conditions
NOI Build-Up for 40,012 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
$883.5K $22.08/SF
− Vacancy
−$51.2K −$1.28/SF
EGI
$832.2K $20.80/SF
− OpEx
−$249.7K −$6.24/SF
NOI
$582.6K $14.56/SF
Area
Temecula, CA
Vacancy
5.80%
Lease Rate
$22.08 /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%
$11,651,140
Cap Rate 7%
$8,322,243
Cap Rate 9%
$6,472,856
Alternative Uses
Best Use
Retail
$8.32M
$7.28M – $9.71M
NOI $582,557 @ 7.0% cap · market cap 3.23%
Second Best
Industrial
$5.32M
$4.65M – $6.20M
NOI $372,225 @ 7.0% cap · market cap 2.06%
Theoretical Best
Office A
$12.42M
$10.87M – $14.49M
NOI $869,330 @ 7.0% cap · market cap 4.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,604
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 92590, CA
4,840
Population
2,023
Households
2.4
Avg Household Size
40
Median Age
33%
College-Educated
91%
High-School Grad
54.4 sq mi
ZIP Area
89
Density / Sq Mi
$76,952
Median Household Income
$41,510
Median Earnings
$1,289
Median Rent
$1,201,400
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?
Auto shop - Industrial building in Temecula, CA, leased to Tesla, Inc.
Where is this auto shop located?
The property is located at 27635 Diaz Rd Temecula, CA.
What is the asking price?
The asking price for this property is $18,039,000.
What are key features of this property?
This property features: Long‑term lease with Tesla, Inc., offering durable cash flow.; Investment‑grade tenant: Tesla, Inc. (Moody’s: Baa3), a leading global brand.; Significant first‑year bonus depreciation opportunity (estimated ±$2.9 million deduction).
