Industrial Flex
For Sale
Contact for pricing
601 E Montecito St, Santa Barbara, CA 93103
Multi-purpose industrial facility offering 23,433 SF of space for flexible commercial use.
Property Size23,433 SF
Price / SF$164.30
Days on Market339
Property Features for 601 E Montecito St
General Information
Standard status
Active
Size
23,433 SF
Property subtype
INDUSTRIAL
Listing Agency:
Radius Commercial Real Estate
(805) 965-5500
Listed By:
Gene Deering · License #01450943
(805) 879-9623
Source:
Moodyscre
Added: Oct 16, 2025
Changed: Sep 11
Last Checked: Sep 19 at 7:11AM
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 Radius Commercial Real Estate
Investment Insights
Based on property information with market context.
This multi-purpose industrial flex building provides 23,433 SF of industrial space suited for a range of operational needs. The property is presented for sale, with a noted major price reduction.
Located at 601 E Montecito St in Santa Barbara, California, the building offers a single-site configuration designed to support light industrial and flexible uses.
With its substantial total square footage, the facility can accommodate tenant improvements and layouts appropriate to the intended use, subject to applicable requirements.
Located at 601 E Montecito St in Santa Barbara, California, the building offers a single-site configuration designed to support light industrial and flexible uses.
With its substantial total square footage, the facility can accommodate tenant improvements and layouts appropriate to the intended use, subject to applicable requirements.
Key Highlights
- Multi‑purpose industrial facility offering 23,433 SF of industrial space
- Flexible commercial use with a multi‑purpose building setup
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
$300,468
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
7.80%
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%
$6,009,360
$6.0M
Cap Rate 7%
$4,292,400
$4.3M
Cap Rate 9%
$3,338,533
$3.3M
Market Conditions
NOI Build-Up for 23,433 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
$478.0K $20.40/SF
− Vacancy
−$15.8K −$0.67/SF
EGI
$462.3K $19.73/SF
− OpEx
−$161.8K −$6.90/SF
NOI
$300.5K $12.82/SF
Area
Santa Barbara County, CA
Vacancy
3.30%
Lease Rate
$20.40 /SF/Yr
Expense Ratio
35.00%
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%
$6,009,360
Cap Rate 7%
$4,292,400
Cap Rate 9%
$3,338,533
Alternative Uses
Best Use
Flex RnD
$4.29M
$3.76M – $5.01M
NOI $300,468 @ 7.0% cap · market cap 7.80%
Second Best
Industrial
$2.05M
$1.79M – $2.39M
NOI $143,503 @ 7.0% cap · market cap 3.73%
Theoretical Best
Multifamily LT 5
$7.35M
$6.44M – $8.58M
NOI $514,826 @ 7.0% cap · market cap 13.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
4,105
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 93103, CA
20,029
Population
8,069
Households
2.5
Avg Household Size
39
Median Age
46%
College-Educated
87%
High-School Grad
5.5 sq mi
ZIP Area
3,642
Density / Sq Mi
$118,118
Median Household Income
$46,441
Median Earnings
$2,407
Median Rent
$1,555,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Multi-purpose industrial facility offering 23,433 SF of space for flexible commercial use.
Where is this flex space located?
The property is located at 601 E Montecito St Santa Barbara, CA.
What is the asking price?
The asking price for this property is $3,850,000.
What are key features of this property?
This property features: Multi‑purpose industrial facility offering 23,433 SF of industrial space; Flexible commercial use with a multi‑purpose building setup
