Three-Story Office
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85 Rio Grande Drive, Castle Rock, CO 80104
Two-tenant office and medical property with professional space across three stories.
Property Size18,504 SF
Price / SF$364.19
Days on Market4
Property Features for 85 Rio Grande Drive
General Information
Standard status
Active
Size
18,504 SF
Property subtype
Office
Additional Details
Highway Access
Yes
Building Details
Year Built
2015
Buildings
1
Stories
3
Tenancy
Multi
Listing Agency:
NavPoint Real Estate Group
Listed By:
Matthew Call · License #FA.100011543
(720) 420-7530
Source:
Crexi
Added: Sep 14
Changed: Sep 16
Last Checked: Sep 16 at 2:40PM
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 NavPoint Real Estate Group
Investment Insights
Based on property information with market context.
Built in 2015, this two-tenant office and medical property contains approximately 18,504 square feet arranged across three stories. The building is positioned for professional, medical, and service-oriented office use within Castle Rock’s established commercial market.
The property sits along the Interstate 25 corridor between Denver and Colorado Springs, providing a location within the broader connection between those two markets. Castle Rock has experienced population growth, expanding employment, and ongoing commercial development, supporting continued demand for office space.
The property sits along the Interstate 25 corridor between Denver and Colorado Springs, providing a location within the broader connection between those two markets. Castle Rock has experienced population growth, expanding employment, and ongoing commercial development, supporting continued demand for office space.
Key Highlights
- Approximately 18,504 square feet across three stories
- Two‑tenant office and medical property
- Constructed in 2015
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
$322,452
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
4.78%
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%
$6,449,040
$6.4M
Cap Rate 7%
$4,606,457
$4.6M
Cap Rate 9%
$3,582,800
$3.6M
Market Conditions
NOI Build-Up for 18,504 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
$517.4K $27.96/SF
− Vacancy
−$87.4K −$4.73/SF
EGI
$429.9K $23.23/SF
− OpEx
−$107.5K −$5.81/SF
NOI
$322.5K $17.43/SF
Area
Douglas County, CO
Vacancy
16.90%
Lease Rate
$27.96 /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%
$6,449,040
Cap Rate 7%
$4,606,457
Cap Rate 9%
$3,582,800
Alternative Uses
Best Use
Office B
$4.61M
$4.03M – $5.37M
NOI $322,452 @ 7.0% cap · market cap 4.78%
Second Best
Healthcare Medical
$3.79M
$3.32M – $4.43M
NOI $265,560 @ 7.0% cap · market cap 3.94%
Theoretical Best
Office A
$6.36M
$5.56M – $7.42M
NOI $444,904 @ 7.0% cap · market cap 6.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,773
Businesses Nearby
Explore this area
Business Placement
Demographics for 80104, CO
34,727
Population
13,945
Households
2.5
Avg Household Size
38
Median Age
54%
College-Educated
97%
High-School Grad
70.7 sq mi
ZIP Area
491
Density / Sq Mi
$131,359
Median Household Income
$60,982
Median Earnings
$1,816
Median Rent
$586,800
Median Home Value
Check the figures for this property
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 building - Two-tenant office and medical property with professional space across three stories.
Where is this office building located?
The property is located at 85 Rio Grande Drive Castle Rock, CO.
What is the asking price?
The asking price for this property is $6,739,000.
What are key features of this property?
This property features: Approximately 18,504 square feet across three stories; Two‑tenant office and medical property; Constructed in 2015
