LEED Gold Office
For Sale
$51,000,000
5401 Watson Dr SE, Albuquerque, NM 87106
Class A, two-tenant office campus with full occupancy and government and financial-services tenancy.
Property Size212,409 SF
Price / SF$240.10
Days on Market43
Property Features for 5401 Watson Dr SE
General Information
Standard status
Active
Size
212,409 SF
Class
Class A
Property subtype
Office
Zoning
PC
Occupancy
100%
Building Details
Year Built
2009
Tenancy
Multi
Listing Agency:
REA Real Estate Advisors
(505) 539-3201
Listed By:
Tom Jenkins · License #NEWMEXICO13292
(505) 539-3201
Source:
Carnm.resimplifi
Added: Jul 20
Changed: Aug 30
Last Checked: Aug 30 at 1:39PM
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 REA Real Estate Advisors
Investment Insights
Based on property information with market context.
This 212,409-square-foot office campus was built in 2009 and holds LEED Gold certification. The Class A property is fully leased to two tenants: the State of New Mexico and Fidelity Investments (FMR LLC). The State of New Mexico lease commences in September 2026 for a 10-year term, includes a 5% rent escalation after Year 5, and provides two 5-year renewal options. Fidelity occupies approximately half of the campus under a NNN lease expiring in November 2028.
The property is zoned PC and operates at 100% occupancy. Its tenant roster combines public-sector and financial-services users, with Fidelity Investments identified as S&P: A. The State of New Mexico lease is scheduled to expire in August 2036, while the renewal options extend the potential lease horizon through 2046.
The property is zoned PC and operates at 100% occupancy. Its tenant roster combines public-sector and financial-services users, with Fidelity Investments identified as S&P: A. The State of New Mexico lease is scheduled to expire in August 2036, while the renewal options extend the potential lease horizon through 2046.
Key Highlights
- 212,409 SF LEED Gold‑certified Class A office campus
- Built in 2009 and zoned PC
- 100% occupancy with two tenants
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
$2,821,641
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
5.53%
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%
$56,432,820
$56.4M
Cap Rate 7%
$40,309,157
$40.3M
Cap Rate 9%
$31,351,567
$31.4M
Market Conditions
NOI Build-Up for 212,409 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
$4.59M $21.60/SF
− Vacancy
−$825.8K −$3.89/SF
EGI
$3.76M $17.71/SF
− OpEx
−$940.5K −$4.43/SF
NOI
$2.82M $13.28/SF
Area
Albuquerque, NM
Vacancy
18.00%
Lease Rate
$21.60 /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%
$56,432,820
Cap Rate 7%
$40,309,157
Cap Rate 9%
$31,351,567
Alternative Uses
Best Use
Office B
$40.31M
$35.27M – $47.03M
NOI $2,821,641 @ 7.0% cap · market cap 5.53%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$51.39M
$44.96M – $59.95M
NOI $3,597,019 @ 7.0% cap · market cap 7.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
26
Businesses Nearby
Explore this area
Business Placement
Demographics for 87106, NM
26,987
Population
13,893
Households
1.9
Avg Household Size
32
Median Age
53%
College-Educated
91%
High-School Grad
35.8 sq mi
ZIP Area
754
Density / Sq Mi
$51,079
Median Household Income
$29,393
Median Earnings
$904
Median Rent
$332,100
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 - Class A, two-tenant office campus with full occupancy and government and financial-services tenancy.
Where is this office building located?
The property is located at 5401 Watson Dr SE Albuquerque, NM.
What is the asking price?
The asking price for this property is $51,000,000.
What are key features of this property?
This property features: 212,409 SF LEED Gold‑certified Class A office campus; Built in 2009 and zoned PC; 100% occupancy with two tenants
