Leased Industrial
For Sale
$1,989,000
760 W Palms, Las Cruces, NM 88007
M-1 industrial property with a long-term lease, mezzanine space, and tenant-paid operating expenses.
Property Size21,845 SF
Price / SF$91.05
Days on Market351
Property Features for 760 W Palms
General Information
Standard status
Active
Size
21,845 SF
Property subtype
Investment
Zoning
M-1
Building Details
Buildings
3
Listing Agency:
Sentinel Real Estate & Inv.
(505) 888-1500
Listed By:
Michael Contreras, CCIM · License #8783QB
(505) 888-1500
Source:
Carnm.resimplifi
Added: Sep 12, 2025
Changed: Aug 28
Last Checked: Aug 28 at 10:12AM
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 Sentinel Real Estate & Inv.
Investment Insights
Based on property information with market context.
This leased industrial property at 760 W Palms comprises approximately 21,846 square feet across 20,113 square feet of ground-floor space and 1,733 square feet of mezzanine area. The site contains approximately 1.0 acre and is zoned M-1 Industrial in Las Cruces.
The current lease runs through May 31, 2032, includes 2% annual rent increases, and provides 1 five-year renewal option. The tenant pays real estate taxes through monthly reimbursement, utilities, HVAC and interior maintenance, content and liability insurance. The landlord remains responsible for the roof, parking lot maintenance, and property insurance.
The current lease runs through May 31, 2032, includes 2% annual rent increases, and provides 1 five-year renewal option. The tenant pays real estate taxes through monthly reimbursement, utilities, HVAC and interior maintenance, content and liability insurance. The landlord remains responsible for the roof, parking lot maintenance, and property insurance.
Key Highlights
- Approximately 21,846 SF total building area
- 20,113 SF ground‑floor space plus 1,733 SF mezzanine
- Approximately 1.0‑acre site
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
$177,259
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
8.91%
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%
$3,545,180
$3.5M
Cap Rate 7%
$2,532,271
$2.5M
Cap Rate 9%
$1,969,544
$2.0M
Market Conditions
NOI Build-Up for 21,845 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
$275.2K $12.60/SF
− Vacancy
−$22.0K −$1.01/SF
EGI
$253.2K $11.59/SF
− OpEx
−$76.0K −$3.48/SF
NOI
$177.3K $8.11/SF
Area
Las Cruces, NM
Vacancy
8.00%
Lease Rate
$12.60 /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%
$3,545,180
Cap Rate 7%
$2,532,271
Cap Rate 9%
$1,969,544
Alternative Uses
Best Use
Retail
$2.53M
$2.22M – $2.95M
NOI $177,259 @ 7.0% cap · market cap 8.91%
Second Best
Industrial
$1.85M
$1.62M – $2.16M
NOI $129,366 @ 7.0% cap · market cap 6.50%
Theoretical Best
Office A
$3.82M
$3.34M – $4.46M
NOI $267,593 @ 7.0% cap · market cap 13.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
511
Businesses Nearby
Explore this area
Business Placement
Demographics for 88007, NM
24,803
Population
10,262
Households
2.4
Avg Household Size
41
Median Age
29%
College-Educated
87%
High-School Grad
328.6 sq mi
ZIP Area
75
Density / Sq Mi
$65,022
Median Household Income
$36,864
Median Earnings
$794
Median Rent
$232,200
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - M-1 industrial property with a long-term lease, mezzanine space, and tenant-paid operating expenses.
Where is this industrial property located?
The property is located at 760 W Palms Las Cruces, NM.
What is the asking price?
The asking price for this property is $1,989,000.
What are key features of this property?
This property features: Approximately 21,846 SF total building area; 20,113 SF ground‑floor space plus 1,733 SF mezzanine; Approximately 1.0‑acre site
