Light Industrial Catering and Flex
For Sale
$750,000
Pending
3648 Olive, Lemon Grove, CA 91945
Well-equipped light industrial property with office support, high-clearance warehouse space, and roll-up dock loading.
Property Size4,202 SF
Days on Market96
Property Features for 3648 Olive
General Information
Standard status
Pending
Size
4,202 SF
Total Parking Spaces
7
Property subtype
Industrial
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Warehouse & Industrial
Clear Height
18 ft
Drive-In Doors
2
Additional Details
Business Included
Yes
Building Details
Building Size
4,202 SF
Year Built
1993
Stories
2
Listed By:
Grace Carter
(760) 846-0729
Source:
Elliman
Added: Jun 3
Changed: Aug 28
Last Checked: Sep 6 at 12:14PM
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 Grace Carter
Investment Insights
Based on property information with market context.
This versatile light industrial property is currently operating as a commercial catering facility and includes a mix of warehouse space and office. The downstairs area offers approximately 18-foot clear height ceilings, abundant natural light from skylights and windows, and two large roll-up dock doors for loading and unloading. Power is wired for 220 amps, supporting light industrial and production needs. Additional workspace is provided through two mezzanine areas totaling approximately 1,434 square feet, including a permitted west mezzanine and an east mezzanine that includes finished space and a portion noted as unpermitted.
The upstairs office areas are supported by carpeted flooring, air conditioning, dedicated work areas, and a private restroom. For customer and employee access, the property includes seven front parking spaces plus a large chain-link fenced front yard area that can support secured parking, storage, equipment, or fleet vehicles.
Designed for owner-users and operating companies, the combination of high-clearance warehouse, dock loading, supplemental mezzanine workspace, and functional administration space fits a range of light industrial uses such as catering, brewery, light manufacturing, warehouse, distribution, or other light industrial business operations. Buyer should verify all square footage, zoning, permits, and suitability for intended business operations.
The upstairs office areas are supported by carpeted flooring, air conditioning, dedicated work areas, and a private restroom. For customer and employee access, the property includes seven front parking spaces plus a large chain-link fenced front yard area that can support secured parking, storage, equipment, or fleet vehicles.
Designed for owner-users and operating companies, the combination of high-clearance warehouse, dock loading, supplemental mezzanine workspace, and functional administration space fits a range of light industrial uses such as catering, brewery, light manufacturing, warehouse, distribution, or other light industrial business operations. Buyer should verify all square footage, zoning, permits, and suitability for intended business operations.
Key Highlights
- Light industrial building built in 1993 with approximately 4,202 SF of office and warehouse space (3,866 SF permitted, buyer to verify).
- Downstairs warehouse features 18‑foot clear height ceilings, skylights and windows for natural light, and two large roll‑up dock doors.
- Power wired for 220 amps, with 2,768 SF downstairs area designed for efficient loading/unloading and light industrial use.
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
$58,376
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
7.78%
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%
$1,167,520
$1.2M
Cap Rate 7%
$833,943
$833.9K
Cap Rate 9%
$648,622
$648.6K
Market Conditions
NOI Build-Up for 4,202 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
$75.6K $18.00/SF
− Vacancy
−$7.0K −$1.66/SF
EGI
$68.7K $16.34/SF
− OpEx
−$10.3K −$2.45/SF
NOI
$58.4K $13.89/SF
Area
San Diego County, CA
Vacancy
9.20%
Lease Rate
$18.00 /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%
$1,167,520
Cap Rate 7%
$833,943
Cap Rate 9%
$648,622
Alternative Uses
Best Use
Specialty Retail
$1.57M
$1.37M – $1.83M
NOI $109,810 @ 7.0% cap · market cap 14.64%
Second Best
Flex RnD
$1.24M
$1.08M – $1.44M
NOI $86,614 @ 7.0% cap · market cap 11.55%
Theoretical Best
Office A
$1.93M
$1.68M – $2.25M
NOI $134,765 @ 7.0% cap · market cap 17.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
18 ft
Clear height
2
Drive-in doors
Turnkey business
Opportunity
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,123
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 91945, CA
27,814
Population
9,715
Households
2.9
Avg Household Size
38
Median Age
20%
College-Educated
89%
High-School Grad
4.0 sq mi
ZIP Area
6,954
Density / Sq Mi
$79,381
Median Household Income
$41,727
Median Earnings
$1,769
Median Rent
$640,500
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Similar Off Market Nearby
- Belinda's Familia Mexican Food Truck — 7939 Broadway, Lemon Grove, CA 91945
Frequently Asked Questions
What type of property is this?
Flex space - Well-equipped light industrial property with office support, high-clearance warehouse space, and roll-up dock loading.
Where is this flex space located?
The property is located at 3648 Olive Lemon Grove, CA.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Light industrial building built in 1993 with approximately 4,202 SF of office and warehouse space (3,866 SF permitted, buyer to verify).; Downstairs warehouse features 18‑foot clear height ceilings, skylights and windows for natural light, and two large roll‑up dock doors.; Power wired for 220 amps, with 2,768 SF downstairs area designed for efficient loading/unloading and light industrial use.
