Office Building in Research
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4605 Research Park Cir, Las Cruces, NM 88001
Office building with long-term leases in Arrowhead Research Park.
Property Size15,589 SF
Price / SF$153.95
Days on Market828
Property Features for 4605 Research Park Cir
General Information
Standard status
Active
Size
15,589 SF
Property subtype
Office
Net Operating Income
$195,930
Listing Agency:
Colliers - Albuquerque, New Mexico
(505) 880-7092
Listed By:
John Ransom · License #NM 11451
Source:
Crexi
Added: May 7, 2024
Changed: Aug 8
Last Checked: May 12 at 10:18PM
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 Colliers - Albuquerque, New Mexico
Investment Insights
Based on property information with market context.
This 15,589 square foot office building is located within New Mexico State University’s 257-acre Arrowhead Research Park. The property benefits from direct visual exposure and easy access to Interstate 25 and 10. The property has favorable ground lease terms with an initial term expiring on July 25, 2047, and includes three additional five-year options to extend. Two State of New Mexico tenants occupy the building under long-term leases. The location provides access to NMSU resources and strategic partners, creating opportunities for businesses to partner with NMSU in pursuit of grants and contracts. Access to the Arrowhead Technology Incubator and the National Security Technology Incubator is also available. The property features an on-site world-class telecommunication network.
Key Highlights
- Long‑term ground lease with favorable terms, expiring 7/25/2047, plus three (3) additional five (5) year options.
- Located within NMSU’s Arrowhead Research Park with direct visual exposure and easy access to Interstate 25 and 10.
- Two State of New Mexico tenants with long‑term leases.
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
$137,951
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
5.75%
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%
$2,759,020
$2.8M
Cap Rate 7%
$1,970,729
$2.0M
Cap Rate 9%
$1,532,789
$1.5M
Market Conditions
NOI Build-Up for 15,589 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
$215.1K $13.80/SF
− Vacancy
−$31.2K −$2.00/SF
EGI
$183.9K $11.80/SF
− OpEx
−$46.0K −$2.95/SF
NOI
$138.0K $8.85/SF
Area
Las Cruces, NM
Vacancy
14.50%
Lease Rate
$13.80 /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%
$2,759,020
Cap Rate 7%
$1,970,729
Cap Rate 9%
$1,532,789
Alternative Uses
Best Use
Office B
$1.97M
$1.72M – $2.30M
NOI $137,951 @ 7.0% cap · market cap 5.75%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.73M
$2.39M – $3.18M
NOI $190,959 @ 7.0% cap · market cap 7.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
137
Businesses Nearby
Explore this area
Business Placement
Demographics for 88001, NM
36,831
Population
16,985
Households
2.2
Avg Household Size
30
Median Age
29%
College-Educated
83%
High-School Grad
11.1 sq mi
ZIP Area
3,318
Density / Sq Mi
$32,978
Median Household Income
$23,195
Median Earnings
$797
Median Rent
$158,300
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 - Office building with long-term leases in Arrowhead Research Park.
Where is this office building located?
The property is located at 4605 Research Park Cir Las Cruces, NM.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: Long‑term ground lease with favorable terms, expiring 7/25/2047, plus three (3) additional five (5) year options.; Located within NMSU’s Arrowhead Research Park with direct visual exposure and easy access to Interstate 25 and 10.; Two State of New Mexico tenants with long‑term leases.
