Office Building with Separate
For Sale
$399,000
4843 Highway 314 SW, Los Lunas, NM 87031
House-style property includes a utility-served back lot and may accommodate service-oriented commercial uses, subject to zoning.
Property Size1,544 SF
Price / SF$258.42
Days on Market37
Property Features for 4843 Highway 314 SW
General Information
Standard status
Active
Size
1,544 SF
Additional Details
Utilities to Site
Yes
Listing Agency:
LPT Realty
(505) 315-2825
Listed By:
Theresa L Jacobson · License #47956
Source:
Thesouthwestlife
Added: Jul 25
Changed: Aug 30
Last Checked: Aug 30 at 6:42AM
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 LPT Realty
Investment Insights
Based on property information with market context.
This office-class property includes a house-style structure with its own septic tank, gas connection, and well. The rear lot has a separate address and independent septic tank, gas connection, and well; the mobile home previously located there has been removed.
Potential applications identified for the property include chiropractic, hair salon, and nail salon uses, along with other possibilities subject to Valencia County Planning and Zoning review. Horse use is permitted, with the number of animals and applicable requirements subject to zoning confirmation. The property is located at 4843 Highway 314 SW in Los Lunas, New Mexico.
Potential applications identified for the property include chiropractic, hair salon, and nail salon uses, along with other possibilities subject to Valencia County Planning and Zoning review. Horse use is permitted, with the number of animals and applicable requirements subject to zoning confirmation. The property is located at 4843 Highway 314 SW in Los Lunas, New Mexico.
Key Highlights
- House‑style structure with its own septic tank, gas connection, and well
- Rear lot has a separate address and independent septic tank, gas connection, and well
- Mobile home formerly on the rear lot has been removed
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
$18,343
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
4.60%
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%
$366,860
$366.9K
Cap Rate 7%
$262,043
$262.0K
Cap Rate 9%
$203,811
$203.8K
Market Conditions
NOI Build-Up for 1,544 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
$30.6K $19.80/SF
− Vacancy
−$6.1K −$3.96/SF
EGI
$24.5K $15.84/SF
− OpEx
−$6.1K −$3.96/SF
NOI
$18.3K $11.88/SF
Area
Valencia County, NM
Vacancy
20.00%
Lease Rate
$19.80 /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%
$366,860
Cap Rate 7%
$262,043
Cap Rate 9%
$203,811
Alternative Uses
Best Use
Office B
$262.0K
$229.3K – $305.7K
NOI $18,343 @ 7.0% cap · market cap 4.60%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$319.3K
$279.4K – $372.5K
NOI $22,348 @ 7.0% cap · market cap 5.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
54
Businesses Nearby
Explore this area
Business Placement
Demographics for 87031, NM
45,208
Population
16,917
Households
2.7
Avg Household Size
37
Median Age
21%
College-Educated
85%
High-School Grad
255.5 sq mi
ZIP Area
177
Density / Sq Mi
$61,947
Median Household Income
$34,167
Median Earnings
$1,083
Median Rent
$206,600
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 - House-style property includes a utility-served back lot and may accommodate service-oriented commercial uses, subject to zoning.
Where is this office building located?
The property is located at 4843 Highway 314 SW Los Lunas, NM.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: House‑style structure with its own septic tank, gas connection, and well; Rear lot has a separate address and independent septic tank, gas connection, and well; Mobile home formerly on the rear lot has been removed
