Industrial Auto Shop with Secured
For Sale
$1,600,000
8537 S Reed Street, Littleton, CO 80128
4,608-square-foot shop on a fenced corner lot with three drive-in bays, vehicle lift, office, restroom, and secured yard.
Property Size4,608 SF
Lot Size0.36 Acres
Price / SF$347.22
Days on Market51
Property Features for 8537 S Reed Street
General Information
Standard status
Active
Size
4,608 SF
Lot size
0.36 Acres
Property subtype
Retail
Additional Details
Fenced Yard
Yes
Drive-In Doors
3
Taxes and HOA fees
Annual Taxes
$27,640
Building Details
Building Size
4,608 SF
Year Built
1979
Listing Agency:
Kentwood Commercial, Llc
(303) 947-3665
Listed By:
Karen Zeile
Source:
Corken
Added: Jul 11
Changed: Aug 24
Last Checked: Aug 29 at 2:39PM
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 Kentwood Commercial, Llc
Investment Insights
Based on property information with market context.
This 4,608-square-foot industrial auto shop is situated on a 15,600-square-foot corner lot and includes a fully fenced and gated, secured outdoor storage area. The building is equipped with three drive-in bays plus a vehicle lift, supporting day-to-day automotive and light service operations. Interior amenities include a small office and a private restroom.
The site is designed to provide practical vehicle access and maneuvering space. The property is located near Chatfield State Park with convenient access to C-470 and the surrounding southwest metro area.
Notable capital improvements include a paint booth installed approximately six years ago, updated electrical service completed in conjunction with the paint booth work, and a roof replacement approximately seven to eight years ago by Del Sol Roofing.
The site is designed to provide practical vehicle access and maneuvering space. The property is located near Chatfield State Park with convenient access to C-470 and the surrounding southwest metro area.
Notable capital improvements include a paint booth installed approximately six years ago, updated electrical service completed in conjunction with the paint booth work, and a roof replacement approximately seven to eight years ago by Del Sol Roofing.
Key Highlights
- 4,608‑square‑foot industrial shop built in 1979 on a 15,600‑square‑foot corner lot
- Fully fenced and gated, secured yard for outdoor storage and vehicle maneuvering
- Shop includes three drive‑in bays plus a vehicle lift for vehicle service and repair
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
$94,921
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
5.93%
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%
$1,898,420
$1.9M
Cap Rate 7%
$1,356,014
$1.4M
Cap Rate 9%
$1,054,678
$1.1M
Market Conditions
NOI Build-Up for 4,608 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
$138.8K $30.12/SF
− Vacancy
−$3.2K −$0.69/SF
EGI
$135.6K $29.43/SF
− OpEx
−$40.7K −$8.83/SF
NOI
$94.9K $20.60/SF
Area
Douglas County, CO
Vacancy
2.30%
Lease Rate
$30.12 /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%
$1,898,420
Cap Rate 7%
$1,356,014
Cap Rate 9%
$1,054,678
Alternative Uses
Best Use
Retail
$1.36M
$1.19M – $1.58M
NOI $94,921 @ 7.0% cap · market cap 5.93%
Second Best
Industrial
$939.4K
$822.0K – $1.10M
NOI $65,758 @ 7.0% cap · market cap 4.11%
Theoretical Best
Office A
$1.58M
$1.38M – $1.85M
NOI $110,793 @ 7.0% cap · market cap 6.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Drive-in doors
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
314
Businesses Nearby
38k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 66%
Dining 27%
Beauty & Spa 7%
King Soopers Fuel Center
Shops & Services
13,260 visits/mo
0.4 miles
Phillips 66
Shops & Services
9,032 visits/mo
0.4 miles
Starbucks
Dining
7,113 visits/mo
0.4 miles
SUBWAY
Dining
3,352 visits/mo
0.4 miles
Great Clips
Beauty & Spa
2,584 visits/mo
0.5 miles
Demographics for 80128, CO
36,699
Population
14,573
Households
2.5
Avg Household Size
41
Median Age
49%
College-Educated
97%
High-School Grad
12.6 sq mi
ZIP Area
2,913
Density / Sq Mi
$119,827
Median Household Income
$61,034
Median Earnings
$1,934
Median Rent
$554,100
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Similar Off Market Nearby
- 470 South Automotive — 8537 S Reed St, Littleton, CO 80128
- Little Mobile Auto Mechanic — 8538 S Saulsbury St, Littleton, CO 80128
- Chatfield Auto Body — 8537 S Reed St, Littleton, CO 80128
- Symtek Auto Hail Specialists — 8537 s reed st b, littleton, co 80128
- Budka Enterprises Inc — 8325 s yarrow st, littleton, co 80128
Frequently Asked Questions
What type of property is this?
Auto shop - 4,608-square-foot shop on a fenced corner lot with three drive-in bays, vehicle lift, office, restroom, and secured yard.
Where is this auto shop located?
The property is located at 8537 S Reed Street Littleton, CO.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: 4,608‑square‑foot industrial shop built in 1979 on a 15,600‑square‑foot corner lot; Fully fenced and gated, secured yard for outdoor storage and vehicle maneuvering; Shop includes three drive‑in bays plus a vehicle lift for vehicle service and repair
