Freestanding Building on High-Traffic
For Sale
$930,000
647 Cerrillos, Santa Fe, NM 87501
Freestanding commercial building on Cerrillos Road available for sale.
Property Size2,746 SF
Lot Size0.16 Acres
Price / SF$338.67
Days on Market126
Property Features for 647 Cerrillos
General Information
Standard status
Active
Size
2,746 SF
Lot size
0.16 Acres
Property subtype
Commercial
Building Details
Year Built
1967
Listing Agency:
REAL ESTATE ADVISORS, LLC
(505) 539-3200
Listed By:
TAI BIXBY · License #40315
Source:
Corcoran
Added: Apr 9
Changed: Aug 12
Last Checked: Aug 12 at 6:55AM
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 REAL ESTATE ADVISORS, LLC
Investment Insights
Based on property information with market context.
A freestanding commercial building is available for sale on Cerrillos Road, a high-traffic corridor in Santa Fe with approximately 25,000 vehicles per day. Constructed in 1967, the building has a size of approximately 2,746 square feet and is situated on an approximately 0.156-acre lot. The property includes 9 paved on-site parking spaces and offers street visibility. Formerly occupied by La Unica Dry Cleaners, the property is suitable for a variety of uses under BCD (Business Capital District) zoning, including restaurant, café, retail, office, personal services, medical, educational, and residential purposes. This makes it suitable for either an owner-user or an investor. The location is near Whole Foods, dining and retail destinations, and the Sage Hotel, and is located blocks from the Santa Fe Railyard. The owner has addressed prior dry cleaning chemical impacts through a Voluntary Remediation Agreement with the New Mexico Environment Department, with a Certificate of Compliance anticipated in Summer 2026.
Key Highlights
- High‑traffic location on Cerrillos Road (±25,000 vehicles per day)
- Flexible BCD zoning allows for a wide range of uses
- Proximity to the Santa Fe Railyard, a premier mixed‑use arts and entertainment district
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
$34,824
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
3.74%
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%
$696,480
$696.5K
Cap Rate 7%
$497,486
$497.5K
Cap Rate 9%
$386,933
$386.9K
Market Conditions
NOI Build-Up for 2,746 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
$54.4K $19.80/SF
− Vacancy
−$4.6K −$1.68/SF
EGI
$49.7K $18.12/SF
− OpEx
−$14.9K −$5.44/SF
NOI
$34.8K $12.68/SF
Area
Santa Fe County, NM
Vacancy
8.50%
Lease Rate
$19.80 /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%
$696,480
Cap Rate 7%
$497,486
Cap Rate 9%
$386,933
Alternative Uses
Best Use
Retail
$497.5K
$435.3K – $580.4K
NOI $34,824 @ 7.0% cap · market cap 3.74%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$745.7K
$652.5K – $869.9K
NOI $52,196 @ 7.0% cap · market cap 5.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,681
Businesses Nearby
203k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 44%
Shops & Services 28%
Groceries 18%
Apparel 9%
Whole Foods Market
Groceries
37,075 visits/mo
0.2 miles
McDonald's
Dining
31,451 visits/mo
0.4 miles
Dunkin' Donuts
Dining
21,098 visits/mo
0.5 miles
Starbucks
Dining
18,085 visits/mo
0.4 miles
Speedway
Shops & Services
17,723 visits/mo
0.5 miles
Demographics for 87501, NM
15,116
Population
10,480
Households
1.4
Avg Household Size
58
Median Age
61%
College-Educated
97%
High-School Grad
50.6 sq mi
ZIP Area
299
Density / Sq Mi
$81,229
Median Household Income
$52,851
Median Earnings
$1,516
Median Rent
$649,100
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Freestanding commercial building on Cerrillos Road available for sale.
Where is this storefront property located?
The property is located at 647 Cerrillos Santa Fe, NM.
What is the asking price?
The asking price for this property is $930,000.
What are key features of this property?
This property features: High‑traffic location on Cerrillos Road (±25,000 vehicles per day); Flexible BCD zoning allows for a wide range of uses; Proximity to the Santa Fe Railyard, a premier mixed‑use arts and entertainment district
