NNN Industrial Property With Office
For Sale
$815,000
615 S Carlton Ave, Farmington, NM 87401
Fully leased industrial asset with renovated offices, warehouse space, and electronic gated access.
Property Size10,892 SF
Lot Size3.73 Acres
Price / SF$74.83
Days on Market70
Property Features for 615 S Carlton Ave
General Information
Standard status
Active
Size
10,892 SF
Lot size
3.73 Acres
Occupancy
100%
Financials
Cap Rate
9%
Gross Income
$82,750
Additional Details
Fenced Yard
Yes
Office Build-Out
2,800 SF
Building Details
Year Renovated
2024
Buildings
3
Listing Agency:
Exp Realty, LLC
(505) 686-3831
Listed By:
Allen Elmore · License #FA100100921
(505) 686-3831
Source:
Exprealty
Added: Jun 3
Changed: Aug 10
Last Checked: Aug 11 at 12:11PM
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 Exp Realty, LLC
Investment Insights
Based on property information with market context.
This fully leased NNN industrial property includes approximately 10,892 square feet of improvements across three buildings on 3.73 fully fenced industrial-zoned acres. Building A contains 5,600 square feet, including approximately 2,800 square feet of renovated office space with a reception area, seven offices, conference room, break room, and two ADA restrooms. The balance provides heated warehouse space with two overhead roll-up doors. Building B adds enclosed and covered storage, while Building C offers adaptable meeting, office, bathroom, warehouse, and covered portico areas.
The property is located at 615 S Carlton Ave in Farmington, NM, with electronic gated access. Building A received a new roof in 6/24, and the property also includes a heating system installed in 10/22, updated evaporative cooling systems, fence replacement, door repairs, and a completed office remodel. The lease commenced 1/1/24, carries a 5-year term, and includes 3% annual rent escalations and a 5-year renewal option. The reported average cap rate is 9%.
The property is located at 615 S Carlton Ave in Farmington, NM, with electronic gated access. Building A received a new roof in 6/24, and the property also includes a heating system installed in 10/22, updated evaporative cooling systems, fence replacement, door repairs, and a completed office remodel. The lease commenced 1/1/24, carries a 5-year term, and includes 3% annual rent escalations and a 5-year renewal option. The reported average cap rate is 9%.
Key Highlights
- Approximately 10,892sf of improvements on 3.73 fully fenced industrial‑zoned acres
- NNN lease commenced 1/1/24 with a 5‑year term and 5‑year renewal option
- Building A includes 5,600sf with approximately 2,800sf of renovated 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
$66,858
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
8.20%
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%
$1,337,160
$1.3M
Cap Rate 7%
$955,114
$955.1K
Cap Rate 9%
$742,867
$742.9K
Market Conditions
NOI Build-Up for 10,892 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
$103.3K $9.48/SF
− Vacancy
−$7.7K −$0.71/SF
EGI
$95.5K $8.77/SF
− OpEx
−$28.7K −$2.63/SF
NOI
$66.9K $6.14/SF
Area
San Juan County, NM
Vacancy
7.50%
Lease Rate
$9.48 /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%
$1,337,160
Cap Rate 7%
$955,114
Cap Rate 9%
$742,867
Alternative Uses
Best Use
Office B
$1.39M
$1.22M – $1.62M
NOI $97,244 @ 7.0% cap · market cap 11.93%
Second Best
Warehouse
$1.16M
$1.01M – $1.35M
NOI $81,185 @ 7.0% cap · market cap 9.96%
Theoretical Best
Office A
$2.25M
$1.97M – $2.63M
NOI $157,727 @ 7.0% cap · market cap 19.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
217
Businesses Nearby
Explore this area
Business Placement
Demographics for 87401, NM
44,724
Population
17,611
Households
2.5
Avg Household Size
34
Median Age
19%
College-Educated
88%
High-School Grad
132.8 sq mi
ZIP Area
337
Density / Sq Mi
$56,358
Median Household Income
$31,362
Median Earnings
$983
Median Rent
$202,400
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?
NNN property - Fully leased industrial asset with renovated offices, warehouse space, and electronic gated access.
Where is this nnn property located?
The property is located at 615 S Carlton Ave Farmington, NM.
What is the asking price?
The asking price for this property is $815,000.
What are key features of this property?
This property features: Approximately 10,892sf of improvements on 3.73 fully fenced industrial‑zoned acres; NNN lease commenced 1/1/24 with a 5‑year term and 5‑year renewal option; Building A includes 5,600sf with approximately 2,800sf of renovated office space
