Listing Agency: Trujillo Commercial Real Estate Group Show Phone

Listed By: Rod Trujillo · License #01388764

Source: Moodyscre

Added: Oct 6, 2025 Changed: Aug 8 Last Checked: Aug 29 at 11:09AM

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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 retail/restaurant suite is located one block from the beach and benefits from high pedestrian traffic generated by tourists visiting the beach and shops on Avila Beach Pier. The property features an open floor plan, a large display area, a private office/storage area, and a private restroom. The property size is 1584 square feet.

Key Highlights

• One block from the beach
• High pedestrian traffic
• Ideal for retail or restaurant use

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

$25,733

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

3.50%

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%

$514,660 $514.7K

Cap Rate 7%

$367,614 $367.6K

Cap Rate 9%

$285,922 $285.9K

Market Conditions

NOI Build-Up for 1,584 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

$38.0K $24.00/SF

− Vacancy

−$1.3K −$0.79/SF

EGI

$36.8K $23.21/SF

− OpEx

−$11.0K −$6.96/SF

NOI

$25.7K $16.25/SF

Area

San Luis Obispo County, CA

Vacancy

3.30%

Lease Rate

$24.00 /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%

$514,660

Cap Rate 7%

$367,614

Cap Rate 9%

$285,922

Alternative Uses

Best Use

Retail

$367.6K

$321.7K – $428.9K (±1% cap)

NOI $25,733 @ 7.0% cap · market cap 3.50%

Second Best

Specialty Retail

$323.8K

$283.3K – $377.8K (±1% cap)

NOI $22,665 @ 7.0% cap · market cap 3.08%

Theoretical Best

Healthcare Medical

$623.0K

$545.1K – $726.8K (±1% cap)

NOI $43,607 @ 7.0% cap · market cap 5.93%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Suggested Use

Top Pick Plumbing Service (Bike/Boat/Book/etc) Store Building Supply Auto Parts Store Kitchen & Bath Showroom Cafe & Coffee Shop

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

192

Businesses Nearby

Explore this area Business Placement

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Retail space - Retail/Restaurant space one block from Avila Beach.

Where is this retail space located?

The property is located at 75 San Miguel St Avila Beach, CA.

What is the asking price?

The asking price for this property is $735,000.

What are key features of this property?

This property features: One block from the beach; High pedestrian traffic; Ideal for retail or restaurant use