La-Z-Boy Showroom Near
For Sale
$5,538,000
5111 Business Center Drive, Fairfield, CA 94534
Corporate-guaranteed La-Z-Boy showroom near Costco with high traffic.
Property Size12,000 SF
Price / SF$461.50
Days on Market96
Property Features for 5111 Business Center Drive
General Information
Standard status
Active
Size
12,000 SF
Property subtype
Retail
Building Details
Building Size
12,000 SF
Listing Agency:
Lockehouse Retail Group
(415) 509-6276
Listed By:
David Kram · License #CalDRE #01848816
Source:
Cppcre
Added: May 14
Changed: Aug 15
Last Checked: Aug 15 at 11:11AM
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 Lockehouse Retail Group
Investment Insights
Based on property information with market context.
This 12,000 square foot showroom benefits from a corporate-guaranteed lease with a La-Z-Boy operator that has 21 locations and is growing in Northern California. The lease features 10% rent increases every five years and two 5-year options. The location consistently ranks in the 54th percentile of furniture stores nationwide, with approximately 10,500 annual visits. La-Z-Boy is a legacy brand with nearly 100 years of operation and nationwide name recognition. The property is strategically positioned immediately adjacent to a high-volume Costco Wholesale, driving daily high-value crossover traffic. Located at the I-80/I-680 interchange, also known as the “Gateway to the Bay”, the property benefits from traffic counts of approximately 174,000 vehicles per day on I-80. It serves the Green Valley neighborhood and benefits from proximity to Travis Air Force Base, the county’s largest employer. The “try-before-you-buy” nature of furniture ensures long-term utility of the physical showroom.
Key Highlights
- Corporate‑guaranteed lease with a growing La‑Z‑Boy operator (21 locations) and 10% rent increases every five years.
- Absolute NNN Sale‑Leaseback structure.
- Strategically located adjacent to a high‑volume Costco Wholesale, driving crossover traffic.
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
$204,518
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
3.69%
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%
$4,090,360
$4.1M
Cap Rate 7%
$2,921,686
$2.9M
Cap Rate 9%
$2,272,422
$2.3M
Market Conditions
NOI Build-Up for 12,000 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
$312.5K $26.04/SF
− Vacancy
−$20.3K −$1.69/SF
EGI
$292.2K $24.35/SF
− OpEx
−$87.7K −$7.30/SF
NOI
$204.5K $17.04/SF
Area
Fairfield, CA
Vacancy
6.50%
Lease Rate
$26.04 /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%
$4,090,360
Cap Rate 7%
$2,921,686
Cap Rate 9%
$2,272,422
Alternative Uses
Best Use
Retail
$2.92M
$2.56M – $3.41M
NOI $204,518 @ 7.0% cap · market cap 3.69%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.88M
$4.27M – $5.70M
NOI $341,942 @ 7.0% cap · market cap 6.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
588
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 94534, CA
42,296
Population
14,249
Households
3
Avg Household Size
41
Median Age
40%
College-Educated
94%
High-School Grad
77.5 sq mi
ZIP Area
546
Density / Sq Mi
$139,349
Median Household Income
$64,052
Median Earnings
$2,699
Median Rent
$700,900
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?
Showroom - Corporate-guaranteed La-Z-Boy showroom near Costco with high traffic.
Where is this showroom located?
The property is located at 5111 Business Center Drive Fairfield, CA.
What is the asking price?
The asking price for this property is $5,538,000.
What are key features of this property?
This property features: Corporate‑guaranteed lease with a growing La‑Z‑Boy operator (21 locations) and 10% rent increases every five years.; Absolute NNN Sale‑Leaseback structure.; Strategically located adjacent to a high‑volume Costco Wholesale, driving crossover traffic.
