Leased Retail Space with Dual
New
For Sale
Contact for pricing
426 W SECOND AVE, Escondido, CA 92025
Fully occupied commercial space with parking and two street exposures.
Property Size8,479 SF
Price / SF$365.61
Days on Market7
Property Features for 426 W SECOND AVE
General Information
Standard status
Active
Size
8,479 SF
Total Parking Spaces
33
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$189,776
Additional Details
Highway Access
Yes
Building Details
Year Built
1987
Units
3
Tenancy
Multi
Listing Agency:
CAST CAPITAL PARTNERS
Listed By:
Bret Morriss · License #CA 02037074
(619) 308-6787
Source:
Crexi
Added: Aug 28
Changed: Sep 1
Last Checked: Sep 2 at 9:52PM
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 CAST CAPITAL PARTNERS
Investment Insights
Based on property information with market context.
Built in 1987, this 8,479-square-foot retail property is fully leased and configured for ongoing occupancy. Every tenant has recently renewed, and the current lease schedule shows uniform expirations in 2030. The property includes 33 on-site surface parking spaces for customer and tenant use.
The building has frontage along both Centre City Pkwy and W 2nd Ave and sits at Downtown Escondido’s primary entry from the I-15 freeway. Its position provides exposure to consistent traffic along the surrounding roadway network. The scheduled 2030 expirations also create a defined point for evaluating future owner-user conversion or redevelopment, as identified in the property information.
The building has frontage along both Centre City Pkwy and W 2nd Ave and sits at Downtown Escondido’s primary entry from the I-15 freeway. Its position provides exposure to consistent traffic along the surrounding roadway network. The scheduled 2030 expirations also create a defined point for evaluating future owner-user conversion or redevelopment, as identified in the property information.
Key Highlights
- 8,479‑square‑foot retail property built in 1987
- 100% leased with all tenants recently renewing
- Uniform lease expirations in 2030
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
$136,749
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
4.41%
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%
$2,734,980
$2.7M
Cap Rate 7%
$1,953,557
$2.0M
Cap Rate 9%
$1,519,433
$1.5M
Market Conditions
NOI Build-Up for 8,479 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
$203.5K $24.00/SF
− Vacancy
−$8.1K −$0.96/SF
EGI
$195.4K $23.04/SF
− OpEx
−$58.6K −$6.91/SF
NOI
$136.7K $16.13/SF
Area
Escondido, CA
Vacancy
4.00%
Lease Rate
$24.00 /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%
$2,734,980
Cap Rate 7%
$1,953,557
Cap Rate 9%
$1,519,433
Alternative Uses
Best Use
Retail
$1.95M
$1.71M – $2.28M
NOI $136,749 @ 7.0% cap · market cap 4.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.99M
$2.62M – $3.49M
NOI $209,519 @ 7.0% cap · market cap 6.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
3,471
Businesses Nearby
209k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 52%
Leisure 13%
Dining 12%
Groceries 12%
Regal Cinemas Escondido 16
Leisure
26,595 visits/mo
0.3 miles
Smart & Final
Groceries
24,075 visits/mo
0.3 miles
San Diego County Credit Union
Shops & Services
15,236 visits/mo
0.4 miles
Goodwill
Apparel
14,056 visits/mo
0.5 miles
dd's DISCOUNTS
Shops & Services
13,807 visits/mo
0.4 miles
Demographics for 92025, CA
51,586
Population
17,376
Households
3
Avg Household Size
35
Median Age
28%
College-Educated
78%
High-School Grad
22.4 sq mi
ZIP Area
2,303
Density / Sq Mi
$71,716
Median Household Income
$41,218
Median Earnings
$1,823
Median Rent
$767,400
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?
Retail space - Fully occupied commercial space with parking and two street exposures.
Where is this retail space located?
The property is located at 426 W SECOND AVE Escondido, CA.
What is the asking price?
The asking price for this property is $3,100,000.
What are key features of this property?
This property features: 8,479‑square‑foot retail property built in 1987; 100% leased with all tenants recently renewing; Uniform lease expirations in 2030
