Commercial Property with Service
For Sale
$610,000
Pending
404 S Circle Drive, Colorado Springs, CO 80910
Commercial property featuring a service center with fenced lot.
Property Size1,991 SF
Lot Size0.51 Acres
Days on Market689
Property Features for 404 S Circle Drive
General Information
Standard status
Pending
Size
1,991 SF
Lot size
0.51 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$4,656
Building Details
Year Built
1970
Listing Agency:
Berkshire Hathaway HomeServices Synergy Realty Group
(719) 660-5223
Listed By:
Charles D'Alessio · License #40034206
(719) 660-5223
Source:
Exitrealty
Added: Oct 3, 2024
Changed: Aug 8
Last Checked: Jul 31 at 1:18PM
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 Berkshire Hathaway HomeServices Synergy Realty Group
Investment Insights
Based on property information with market context.
This commercial property functions as a long-standing service center, featuring an overhead drive-in to the main entrance. The building includes 12 ft ceilings, three 10ft bay doors, an office, lobby, service area, and storage. It is situated on a 22,316 sq ft lot that is fully fenced at the rear. The property is located on the corner of a high-traffic road, a short 8-minute drive to Downtown Colorado Springs. The building size is 1,991 sq ft.
Key Highlights
- High‑traffic corner lot location, ideal for visibility and accessibility.
- Large 22,316 SQ FT lot with full rear fencing.
- Overhead drive‑in access to the main entrance.
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
$23,958
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
3.93%
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%
$479,160
$479.2K
Cap Rate 7%
$342,257
$342.3K
Cap Rate 9%
$266,200
$266.2K
Market Conditions
NOI Build-Up for 1,991 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
$35.8K $18.00/SF
− Vacancy
−$1.6K −$0.81/SF
EGI
$34.2K $17.19/SF
− OpEx
−$10.3K −$5.16/SF
NOI
$24.0K $12.03/SF
Area
Colorado Springs, CO
Vacancy
4.50%
Lease Rate
$18.00 /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%
$479,160
Cap Rate 7%
$342,257
Cap Rate 9%
$266,200
Alternative Uses
Best Use
Retail
$342.3K
$299.5K – $399.3K
NOI $23,958 @ 7.0% cap · market cap 3.93%
Second Best
Industrial
$258.1K
$225.8K – $301.1K
NOI $18,067 @ 7.0% cap · market cap 2.96%
Theoretical Best
Specialty Retail
$393.2K
$344.1K – $458.7K
NOI $27,524 @ 7.0% cap · market cap 4.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
953
Businesses Nearby
45k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 51%
Shops & Services 49%
Save-A-Lot
Groceries
22,931 visits/mo
0.1 miles
Maverik Adventures First Stop
Shops & Services
14,231 visits/mo
0.1 miles
Family Dollar
Shops & Services
7,688 visits/mo
0.1 miles
Demographics for 80910, CO
30,991
Population
13,940
Households
2.2
Avg Household Size
32
Median Age
25%
College-Educated
89%
High-School Grad
6.1 sq mi
ZIP Area
5,080
Density / Sq Mi
$56,681
Median Household Income
$37,110
Median Earnings
$1,299
Median Rent
$276,900
Median Home Value
Market
Vacancy Rate% for Retail in Colorado Springs, CO
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Auto shop - Commercial property featuring a service center with fenced lot.
Where is this auto shop located?
The property is located at 404 S Circle Drive Colorado Springs, CO.
What is the asking price?
The asking price for this property is $610,000.
What are key features of this property?
This property features: High‑traffic corner lot location, ideal for visibility and accessibility.; Large 22,316 SQ FT lot with full rear fencing.; Overhead drive‑in access to the main entrance.
