Victorian Mixed-Use Office
For Sale
$2,535,000
603 Mission ST, Santa Cruz, CA 95060
Commercial/Industrial, SANTA CRUZ, CA
Property Size4,823 SF
Lot Size0.42 Acres
Price / SF$525.61
Days on Market47
Property Features for 603 Mission ST
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial
Parking
17
Parking features
Covered
Security features
Security Alarm
Subdivision
West Santa Cruz
Standard status
Active
Lot size
0.42 Acres
Utilities
Water source
Public
Building Details
Year built
1889
Roof type
Shingle, Composition
Listing Agency:
Anderson Christie, Inc.
(831) 515-8421
Listed By:
Marvin Christie · License #01894395
(831) 406-1031
Added: Jul 11
Changed: Aug 20
Last Checked: Aug 26 at 3:06AM
MLS# ML81949855
Copyright © 2026 MLS Listings, Inc. 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 mixed-use property comprises a Victorian house built in 1889 and a separate office structure. The main building provides 4,623 square feet of office space plus 200 square feet of storage, with six private offices, meeting rooms, and breakrooms. A legal residential unit occupies the second floor above the separate private office space, creating a combined office and residential configuration.
The property includes three parcels totaling over 18,000 square feet on approximately 0.415 acres. It occupies a visible corner along a heavily traveled Santa Cruz road at 603 Mission Street, with downtown restaurants and shops within walking distance. Commercial zoning is in place, and the property information states that new zoning allows for multi-residential use. Covered parking and public water service are also provided. Residential and development possibilities should be verified with the City of Santa Cruz.
The property includes three parcels totaling over 18,000 square feet on approximately 0.415 acres. It occupies a visible corner along a heavily traveled Santa Cruz road at 603 Mission Street, with downtown restaurants and shops within walking distance. Commercial zoning is in place, and the property information states that new zoning allows for multi-residential use. Covered parking and public water service are also provided. Residential and development possibilities should be verified with the City of Santa Cruz.
Key Highlights
- 4,623 SF office building plus 200 SF of storage space
- Six private offices, meeting rooms, and breakrooms
- Separate structure includes a legal residential unit above private office space
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
$172,362
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
6.80%
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%
$3,447,240
$3.4M
Cap Rate 7%
$2,462,314
$2.5M
Cap Rate 9%
$1,915,133
$1.9M
Market Conditions
NOI Build-Up for 4,823 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
$289.4K $60.00/SF
− Vacancy
−$13.6K −$2.82/SF
EGI
$275.8K $57.18/SF
− OpEx
−$103.4K −$21.44/SF
NOI
$172.4K $35.74/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$60.00 /SF/Yr
Expense Ratio
37.50%
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%
$3,447,240
Cap Rate 7%
$2,462,314
Cap Rate 9%
$1,915,133
Alternative Uses
Best Use
Mixed Use
$2.46M
$2.15M – $2.87M
NOI $172,362 @ 7.0% cap · market cap 6.80%
Second Best
Office B
$1.69M
$1.48M – $1.98M
NOI $118,501 @ 7.0% cap · market cap 4.67%
Theoretical Best
Retail
$2.76M
$2.41M – $3.22M
NOI $193,045 @ 7.0% cap · market cap 7.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
3,288
Businesses Nearby
Explore this area
Business Placement
Demographics for 95060, CA
47,931
Population
20,181
Households
2.4
Avg Household Size
39
Median Age
55%
College-Educated
94%
High-School Grad
54.5 sq mi
ZIP Area
879
Density / Sq Mi
$106,040
Median Household Income
$46,231
Median Earnings
$2,356
Median Rent
$1,189,300
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?
Mixed-use property - Commercial zoning supports an office configuration with a separate residential unit.
Where is this mixed-use property located?
The property is located at 603 Mission ST Santa Cruz, CA.
What is the asking price?
The asking price for this property is $2,535,000.
What are key features of this property?
This property features: 4,623 SF office building plus 200 SF of storage space; Six private offices, meeting rooms, and breakrooms; Separate structure includes a legal residential unit above private office space
