Two-Story Mixed-Use
For Sale
$2,500,000
668 Marsh, San Luis Obispo, CA 93401
Retail and professional office space with direct Marsh Street frontage in downtown San Luis Obispo.
Property Size6,880 SF
Price / SF$363.37
Days on Market14
Property Features for 668 Marsh
General Information
Standard status
Active
Size
6,880 SF
Building Details
Year Built
1988
Buildings
1
Stories
2
Building Size
6,880 SF
Tenancy
Multi
Listing Agency:
Acquire Mortgage & Real Estate
(805) 748-5817
Listed By:
Levi Seligman · License #01936432
Source:
Myfabuloushome
Added: Aug 17
Changed: Aug 28
Last Checked: Aug 29 at 11:41AM
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 Acquire Mortgage & Real Estate
Investment Insights
Based on property information with market context.
Located at 668 Marsh in San Luis Obispo, this two-story mixed-use property contains approximately 6,880 square feet of retail and professional office space. Built in 1988, the building presents a multi-tenant configuration with frontage along Marsh Street and a combination of commercial uses within the same property.
The property sits near the intersection of Marsh and Broad Streets in Downtown San Luis Obispo, surrounded by restaurants, shops, hotels, nightlife, entertainment, and cultural attractions. Public parking is also available in the surrounding downtown area. Four adjacent properties are additionally offered for sale, creating an opportunity to evaluate the assets together.
The property sits near the intersection of Marsh and Broad Streets in Downtown San Luis Obispo, surrounded by restaurants, shops, hotels, nightlife, entertainment, and cultural attractions. Public parking is also available in the surrounding downtown area. Four adjacent properties are additionally offered for sale, creating an opportunity to evaluate the assets together.
Key Highlights
- Approximately 6,880‑square‑foot mixed‑use property
- Two‑story building constructed in 1988
- Multi‑tenant retail and professional office configuration
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
$128,051
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
5.12%
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%
$2,561,020
$2.6M
Cap Rate 7%
$1,829,300
$1.8M
Cap Rate 9%
$1,422,789
$1.4M
Market Conditions
NOI Build-Up for 6,880 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
$181.6K $26.40/SF
− Vacancy
−$10.9K −$1.58/SF
EGI
$170.7K $24.82/SF
− OpEx
−$42.7K −$6.20/SF
NOI
$128.1K $18.61/SF
Area
San Luis Obispo County, CA
Vacancy
6.00%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
25.00%
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%
$2,561,020
Cap Rate 7%
$1,829,300
Cap Rate 9%
$1,422,789
Alternative Uses
Best Use
Office B
$1.83M
$1.60M – $2.13M
NOI $128,051 @ 7.0% cap · market cap 5.12%
Second Best
Retail
$1.60M
$1.40M – $1.86M
NOI $111,770 @ 7.0% cap · market cap 4.47%
Theoretical Best
Healthcare Medical
$2.71M
$2.37M – $3.16M
NOI $189,406 @ 7.0% cap · market cap 7.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,613
Businesses Nearby
Explore this area
Business Placement
Demographics for 93401, CA
29,877
Population
14,363
Households
2.1
Avg Household Size
39
Median Age
57%
College-Educated
96%
High-School Grad
64.2 sq mi
ZIP Area
465
Density / Sq Mi
$95,386
Median Household Income
$47,898
Median Earnings
$1,859
Median Rent
$943,500
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 - Retail and professional office space with direct Marsh Street frontage in downtown San Luis Obispo.
Where is this mixed-use property located?
The property is located at 668 Marsh San Luis Obispo, CA.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Approximately 6,880‑square‑foot mixed‑use property; Two‑story building constructed in 1988; Multi‑tenant retail and professional office configuration
