Flex Space with Office and
For Sale
$1,995,000
738 Scarlet Drive, Grand Junction, CO 81505
CommercialSale, Grand Junction, CO
Property Size13,150 SF
Price / SF$151.71
Days on Market56
Property Features for 738 Scarlet Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
I-1
Directions
Hwy 6 & 50 west of Mesa Mall to Scarlet - north to 738 Scarlet
Subdivision
NW Grand Junction
Standard status
Active
Taxes and HOA fees
Tax Annual Amount
16245
Listing Agency:
VENTURE GROUP
(970) 892-2200
Listed By:
Theresa Englbrecht · License #FA100006764
(970) 201-1849
Added: Jul 1
Changed: Aug 24
Last Checked: Aug 25 at 9:06AM
MLS# 20263159
Copyright © 2026 Grand Junction Area Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This flex property at 738 Scarlet Drive combines 13,150 SF of commercial space with a functional office-and-shop layout. The warehouse component measures 11,616 SF and provides clear-span space beneath an 18' eave height, while the 1,534 SF office area is climate controlled for administrative or professional use. Four 12' overhead doors support loading, shipping, receiving, and equipment access.
The property is positioned near the I-70 and 22 Road interchange in Grand Junction, providing direct access to a major regional transportation route. Brand-new, high-efficiency Lennox HVAC units serve the property, complementing the dedicated office environment and industrial shop area.
The property is positioned near the I-70 and 22 Road interchange in Grand Junction, providing direct access to a major regional transportation route. Brand-new, high-efficiency Lennox HVAC units serve the property, complementing the dedicated office environment and industrial shop area.
Key Highlights
- 13,150 SF flex property with 11,616 SF of clear‑span warehouse space
- 1,534 SF of climate‑controlled office space
- 18' eave height supports racking and large equipment
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
$137,200
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
6.88%
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%
$2,744,000
$2.7M
Cap Rate 7%
$1,960,000
$2.0M
Cap Rate 9%
$1,524,444
$1.5M
Market Conditions
NOI Build-Up for 13,150 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
$228.8K $17.40/SF
− Vacancy
−$17.7K −$1.35/SF
EGI
$211.1K $16.05/SF
− OpEx
−$73.9K −$5.62/SF
NOI
$137.2K $10.43/SF
Area
Mesa County, CO
Vacancy
7.75%
Lease Rate
$17.40 /SF/Yr
Expense Ratio
35.00%
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%
$2,744,000
Cap Rate 7%
$1,960,000
Cap Rate 9%
$1,524,444
Alternative Uses
Best Use
Flex RnD
$1.96M
$1.72M – $2.29M
NOI $137,200 @ 7.0% cap · market cap 6.88%
Second Best
Office B
$1.78M
$1.55M – $2.07M
NOI $124,268 @ 7.0% cap · market cap 6.23%
Theoretical Best
Healthcare Medical
$24.95M
$21.84M – $29.11M
NOI $1,746,846 @ 7.0% cap · market cap 87.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
221
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 81505, CO
11,791
Population
5,379
Households
2.2
Avg Household Size
41
Median Age
42%
College-Educated
96%
High-School Grad
72.1 sq mi
ZIP Area
164
Density / Sq Mi
$87,677
Median Household Income
$46,560
Median Earnings
$1,424
Median Rent
$436,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Clear-span shop space is paired with climate-controlled professional offices and high-efficiency HVAC equipment.
Where is this flex space located?
The property is located at 738 Scarlet Drive Grand Junction, CO.
What is the asking price?
The asking price for this property is $1,995,000.
What are key features of this property?
This property features: 13,150 SF flex property with 11,616 SF of clear‑span warehouse space; 1,534 SF of climate‑controlled office space; 18' eave height supports racking and large equipment
