Multi-Tenant Office Building with
For Sale
$1,900,000
3437 Empresa, San Luis Obispo, CA 93401
Existing tenants occupy a flexible professional office layout with private rooms, meeting space, support areas, and ample parking.
Property Size6,280 SF
Price / SF$302.55
Days on Market8
Property Features for 3437 Empresa
General Information
Standard status
Active
Size
6,280 SF
Property subtype
Office
Additional Details
Highway Access
Yes
Office Units
4
Amenities
3
Tar Gravel
21 Parking Spaces.
Paved. Paved Road.
Building Details
Year Built
1989
Tenancy
Multi
Listing Agency:
Home & Ranch Sotheby's Intl
(805) 434-9700
Listed By:
David Crabtree · License #01259831
Source:
Xome
Added: Aug 15
Changed: Aug 20
Last Checked: Aug 22 at 4:59AM
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 Home & Ranch Sotheby's Intl
Investment Insights
Based on property information with market context.
This professionally maintained office property contains 6,280 square feet of commercial workspace arranged for multiple occupants. The improvements include private offices, reception areas, break rooms, bathrooms, conference space, an upper-level loft, and an attached garage with additional storage. Existing tenants are in place, and the property includes 21 parking spaces.
Located at 3437 Empresa in San Luis Obispo, the property sits among office and industrial developments in an established commercial corridor. Highway 101 is nearby, providing convenient regional access for occupants and visitors. Built in 1989, the property offers a practical configuration for professional office operations.
Located at 3437 Empresa in San Luis Obispo, the property sits among office and industrial developments in an established commercial corridor. Highway 101 is nearby, providing convenient regional access for occupants and visitors. Built in 1989, the property offers a practical configuration for professional office operations.
Key Highlights
- 6,280‑square‑foot multi‑tenant office property
- Existing tenants in place
- Unit A includes seven private offices, reception, break room, three bathrooms, and an attached garage with storage
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
$116,883
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
6.15%
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%
$2,337,660
$2.3M
Cap Rate 7%
$1,669,757
$1.7M
Cap Rate 9%
$1,298,700
$1.3M
Market Conditions
NOI Build-Up for 6,280 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
$165.8K $26.40/SF
− Vacancy
−$9.9K −$1.58/SF
EGI
$155.8K $24.82/SF
− OpEx
−$39.0K −$6.20/SF
NOI
$116.9K $18.61/SF
Area
San Luis Obispo County, CA
Vacancy
6.00%
Lease Rate
$26.40 /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%
$2,337,660
Cap Rate 7%
$1,669,757
Cap Rate 9%
$1,298,700
Alternative Uses
Best Use
Office B
$1.67M
$1.46M – $1.95M
NOI $116,883 @ 7.0% cap · market cap 6.15%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$2.47M
$2.16M – $2.88M
NOI $172,888 @ 7.0% cap · market cap 9.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Office units
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,002
Businesses Nearby
Explore this area
Business Placement
Demographics for 93401, CA
29,877
Population
14,363
Households
2.1
Avg Household Size
39
Median Age
57%
College-Educated
96%
High-School Grad
64.2 sq mi
ZIP Area
465
Density / Sq Mi
$95,386
Median Household Income
$47,898
Median Earnings
$1,859
Median Rent
$943,500
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 building - Existing tenants occupy a flexible professional office layout with private rooms, meeting space, support areas, and ample parking.
Where is this office building located?
The property is located at 3437 Empresa San Luis Obispo, CA.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: 6,280‑square‑foot multi‑tenant office property; Existing tenants in place; Unit A includes seven private offices, reception, break room, three bathrooms, and an attached garage with storage
