Office Suites with Elevator
For Sale
Contact for pricing
689 Tank Farm Rd, San Luis Obispo, CA 93401
Two leased second-floor office suites served by an elevator, with common restrooms and lobby space
Property Size8,051 SF
Price / SF$316.73
Days on Market261
Property Features for 689 Tank Farm Rd
General Information
Standard status
Active
Size
8,051 SF
Elevators
Yes
Property subtype
OFFICE
Additional Details
Floor
2
Highway Access
Yes
Amenities
common area restrooms
Building Details
Tenancy
Multi
Listing Agency:
Trujillo Commercial Real Estate Group
(805) 439-4733
Listed By:
Rod Trujillo · License #01388764
Source:
Moodyscre
Added: Jan 6
Changed: Sep 16
Last Checked: Sep 22 at 8:09PM
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 Trujillo Commercial Real Estate Group
Investment Insights
Based on property information with market context.
This office building offers two leased second-floor suites, served by an elevator and supported by common area restrooms throughout. Suite 230 is 5,561 SF and is leased; it features an open floorplan with eight offices, a conference room, and a lobby area. Suite 240 is 2,490 SF and is also leased.
The property is positioned on the corner of Broad Street and Tank Farm Road, providing easy access to Downtown and the Highway, with SLO Airport minutes away. These second-floor suites also offer views.
Designed for professional office use, the suites combine practical internal layout elements, including multiple offices, a dedicated conference room, and shared common areas within the building.
The property is positioned on the corner of Broad Street and Tank Farm Road, providing easy access to Downtown and the Highway, with SLO Airport minutes away. These second-floor suites also offer views.
Designed for professional office use, the suites combine practical internal layout elements, including multiple offices, a dedicated conference room, and shared common areas within the building.
Key Highlights
- Leased second‑floor office suites in a professionally served building
- Suite 230: 5,561 SF with open floorplan, 8 offices, conference room, and lobby
- Suite 240: 2,490 SF leased office suite
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
$149,845
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
5.88%
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%
$2,996,900
$3.0M
Cap Rate 7%
$2,140,643
$2.1M
Cap Rate 9%
$1,664,944
$1.7M
Market Conditions
NOI Build-Up for 8,051 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
$212.5K $26.40/SF
− Vacancy
−$12.8K −$1.58/SF
EGI
$199.8K $24.82/SF
− OpEx
−$49.9K −$6.20/SF
NOI
$149.8K $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%
$2,996,900
Cap Rate 7%
$2,140,643
Cap Rate 9%
$1,664,944
Alternative Uses
Best Use
Office B
$2.14M
$1.87M – $2.50M
NOI $149,845 @ 7.0% cap · market cap 5.88%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$3.17M
$2.77M – $3.69M
NOI $221,643 @ 7.0% cap · market cap 8.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
937
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
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office units - Two leased second-floor office suites served by an elevator, with common restrooms and lobby space
Where is this office units located?
The property is located at 689 Tank Farm Rd San Luis Obispo, CA.
What is the asking price?
The asking price for this property is $2,550,000.
What are key features of this property?
This property features: Leased second‑floor office suites in a professionally served building; Suite 230: 5,561 SF with open floorplan, 8 offices, conference room, and lobby; Suite 240: 2,490 SF leased office suite
