Flex Space with Fenced
For Sale
$3,700,000
42660 Rio Nedo, Temecula, CA 92590
Available for immediate occupancy with covered exterior work area, engineered mezzanine, and 400-amp electrical service.
Property Size12,149 SF
Days on Market55
Property Features for 42660 Rio Nedo
General Information
Standard status
Active
Size
12,149 SF
Property subtype
Industrial
Site & Location
Fenced Yard
Yes
Outdoor Storage
Yes
Warehouse & Industrial
Mezzanine
1,024 SF
Power
400 amps
Building Details
Building Size
12,149 SF
Year Built
1998
Listing Agency:
Lee & Associates
Listed By:
Jim Nadal, CCIM · License #CalDRE #01040679
(951) 445-4520
Source:
Lee-associates
Added: Jul 10
Changed: Sep 2
Last Checked: Sep 2 at 2:02PM
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 Lee & Associates
Investment Insights
Based on property information with market context.
This 1998 flex-space property in Temecula includes a secured outdoor yard with fencing and a gate, providing dedicated exterior work area. The improvements also include 1,200 SF of covered workspace and a 1,024 SF engineered mezzanine, adding functional space beyond the primary building area. Electrical capacity includes a 400-amp panel. The property is located at 42660 Rio Nedo, Temecula, California 92590, and is available for immediate occupancy.
Key Highlights
- Fenced and gated yard
- 1,200 SF outdoor covered workspace
- 1,024 SF engineered mezzanine
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
$113,020
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
3.05%
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%
$2,260,400
$2.3M
Cap Rate 7%
$1,614,571
$1.6M
Cap Rate 9%
$1,255,778
$1.3M
Market Conditions
NOI Build-Up for 12,149 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
$174.9K $14.40/SF
− Vacancy
−$13.5K −$1.11/SF
EGI
$161.5K $13.29/SF
− OpEx
−$48.4K −$3.99/SF
NOI
$113.0K $9.30/SF
Area
Temecula, CA
Vacancy
7.71%
Lease Rate
$14.40 /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%
$2,260,400
Cap Rate 7%
$1,614,571
Cap Rate 9%
$1,255,778
Alternative Uses
Best Use
Industrial
$1.61M
$1.41M – $1.88M
NOI $113,020 @ 7.0% cap · market cap 3.05%
Second Best
Flex RnD
$1.50M
$1.31M – $1.75M
NOI $104,947 @ 7.0% cap · market cap 2.84%
Theoretical Best
Office A
$3.77M
$3.30M – $4.40M
NOI $263,958 @ 7.0% cap · market cap 7.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
681
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 Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Available for immediate occupancy with covered exterior work area, engineered mezzanine, and 400-amp electrical service.
Where is this flex space located?
The property is located at 42660 Rio Nedo Temecula, CA.
What is the asking price?
The asking price for this property is $3,700,000.
What are key features of this property?
This property features: Fenced and gated yard; 1,200 SF outdoor covered workspace; 1,024 SF engineered mezzanine
