Gated Distribution
For Sale
$8,600,000
563 Sandhill Lane, Grand Junction, CO 81505
CommercialSale, Grand Junction, CO
Property Size101,943 SF
Lot Size8.27 Acres
Price / SF$84.36
Days on Market144
Property Features for 563 Sandhill Lane
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
I-2
Lot features
Corner Lot
Directions
Located off Riverside Parkway about a mile from 24 Rd., turn south on Sandhill Ln. Property is on corner of Sandhill Ln. & Riverside Pkwy.
Subdivision
Grand Junction City
Standard status
Active
Lot size
8.27 Acres
Taxes and HOA fees
Tax Annual Amount
94578
Listing Agency:
CBRE
(970) 216-7474
Listed By:
Katie Worrall · License #001317901
(970) 216-7474
Added: Apr 1
Changed: Aug 21
Last Checked: Aug 21 at 11:06PM
MLS# 20261653
Copyright © 2026 Grand Junction Area Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 101,943-square-foot distribution facility occupies 8.27 acres and includes a 93,950-square-foot warehouse, a 5,550-square-foot mechanical area, and 4,700 square feet of upper-level office and break-room space. The property is served by 1,200-amp, three-phase power and includes 26 loading dock-height doors. A gated, fenced, paved yard provides truck parking with 220 power access, along with 13 power pedestals and 26 - 220 outlets.
Located in Grand Junction’s industrial area, the property is zoned I-2 by the City of Grand Junction. The combination of warehouse, mechanical, office, yard, loading, and power infrastructure supports distribution and industrial operations.
Located in Grand Junction’s industrial area, the property is zoned I-2 by the City of Grand Junction. The combination of warehouse, mechanical, office, yard, loading, and power infrastructure supports distribution and industrial operations.
Key Highlights
- 8.27‑acre industrial property with a 101,943 SF distribution warehouse
- 93,950 SF warehouse, 5,550 SF mechanical area, and 4,700 SF upper‑level office/break room
- 26 loading dock height doors
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
$784,947
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
9.13%
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%
$15,698,940
$15.7M
Cap Rate 7%
$11,213,529
$11.2M
Cap Rate 9%
$8,721,633
$8.7M
Market Conditions
NOI Build-Up for 101,943 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
$1.19M $11.64/SF
− Vacancy
−$65.3K −$0.64/SF
EGI
$1.12M $11.00/SF
− OpEx
−$336.4K −$3.30/SF
NOI
$784.9K $7.70/SF
Area
Mesa County, CO
Vacancy
5.50%
Lease Rate
$11.64 /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%
$15,698,940
Cap Rate 7%
$11,213,529
Cap Rate 9%
$8,721,633
Alternative Uses
Best Use
Warehouse
$13.62M
$11.91M – $15.89M
NOI $953,150 @ 7.0% cap · market cap 11.08%
Second Best
Industrial
$11.21M
$9.81M – $13.08M
NOI $784,947 @ 7.0% cap · market cap 9.13%
Theoretical Best
Healthcare Medical
$193.46M
$169.28M – $225.70M
NOI $13,542,108 @ 7.0% cap · market cap 157.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
26
Dock-high doors
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
1,112
Businesses Nearby
Explore this area
Business Placement
Demographics for 81505, CO
11,791
Population
5,379
Households
2.2
Avg Household Size
41
Median Age
42%
College-Educated
96%
High-School Grad
72.1 sq mi
ZIP Area
164
Density / Sq Mi
$87,677
Median Household Income
$46,560
Median Earnings
$1,424
Median Rent
$436,800
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?
Distribution center - Industrial distribution facility with a paved, secured yard and extensive loading capacity.
Where is this distribution center located?
The property is located at 563 Sandhill Lane Grand Junction, CO.
What is the asking price?
The asking price for this property is $8,600,000.
What are key features of this property?
This property features: 8.27‑acre industrial property with a 101,943 SF distribution warehouse; 93,950 SF warehouse, 5,550 SF mechanical area, and 4,700 SF upper‑level office/break room; 26 loading dock height doors
