Medical Office Corner
For Sale
$2,450,000
689 Tank Farm, San Luis Obispo, CA 93401
Medical office suite with open layout, conference room, kitchenette, and elevator access within a corner location.
Property Size7,727 SF
Price / SF$317.07
Days on Market42
Property Features for 689 Tank Farm
General Information
Standard status
Active
Size
7,727 SF
Lease Type
NNN
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
conference room
kitchenette
lobby area
elevator
common area restrooms
Building Details
Year Built
2006
Tenancy
Multi
Listing Agency:
Trujillo Commercial Real Estate Group
Listed By:
Rodney Trujillo
Source:
Livebre
Added: Jul 25
Changed: Sep 4
Last Checked: Sep 1 at 8:32PM
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 medical office property offers an open floorplan with office areas, a conference room, a kitchenette, and a lobby area. The building includes an elevator and common area restrooms. Suite 120 is occupied, and Suite 140 is available.
The property is situated on a corner at Broad Street and Tank Farm Road, providing convenient access to Downtown and the Highway, with SLO Airport minutes away.
Suite 120 is approximately 3,131 SF. Suite 140 is approximately 4,769 SF and is described as having visibility.
The property is situated on a corner at Broad Street and Tank Farm Road, providing convenient access to Downtown and the Highway, with SLO Airport minutes away.
Suite 120 is approximately 3,131 SF. Suite 140 is approximately 4,769 SF and is described as having visibility.
Key Highlights
- Corner medical office space at Broad Street and Tank Farm Road in San Luis Obispo
- Suite 140: approx. 4,769 SF, open layout with offices plus a conference room and kitchenette area
- Suite 120: approx. 3,131 SF and currently occupied
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
$212,724
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
8.68%
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%
$4,254,480
$4.3M
Cap Rate 7%
$3,038,914
$3.0M
Cap Rate 9%
$2,363,600
$2.4M
Market Conditions
NOI Build-Up for 7,727 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
$366.3K $47.40/SF
− Vacancy
−$11.7K −$1.52/SF
EGI
$354.5K $45.88/SF
− OpEx
−$141.8K −$18.35/SF
NOI
$212.7K $27.53/SF
Area
San Luis Obispo County, CA
Vacancy
3.20%
Lease Rate
$47.40 /SF/Yr
Expense Ratio
40.00%
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%
$4,254,480
Cap Rate 7%
$3,038,914
Cap Rate 9%
$2,363,600
Alternative Uses
Best Use
Healthcare Medical
$3.04M
$2.66M – $3.55M
NOI $212,724 @ 7.0% cap · market cap 8.68%
Second Best
Office B
$2.05M
$1.80M – $2.40M
NOI $143,815 @ 7.0% cap · market cap 5.87%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
937
Businesses Nearby
Balanced
Demand for This Use
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?
Medical Office Space - Medical office suite with open layout, conference room, kitchenette, and elevator access within a corner location.
Where is this medical office space located?
The property is located at 689 Tank Farm San Luis Obispo, CA.
What is the asking price?
The asking price for this property is $2,450,000.
What are key features of this property?
This property features: Corner medical office space at Broad Street and Tank Farm Road in San Luis Obispo; Suite 140: approx. 4,769 SF, open layout with offices plus a conference room and kitchenette area; Suite 120: approx. 3,131 SF and currently occupied
