Industrial Building in San
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8646 Commerce Ave, San Diego, CA 92121
4,610 SF industrial building with flexible space and storage.
Property Size4,610 SF
Price / SF$463.12
Days on Market107
Property Features for 8646 Commerce Ave
General Information
Standard status
Active
Size
4,610 SF
Property subtype
Industrial
Zoning
IL-2-1
Investment Type
Owner/User
Listing Agency:
NAI San Diego
Listed By:
Mark Silverman · License #00899837
Source:
Crexi
Added: May 15
Changed: Aug 27
Last Checked: Aug 28 at 1:44PM
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 NAI San Diego
Investment Insights
Based on property information with market context.
The property is a 4,610 square foot industrial building located at 8646 Commerce Ave in San Diego, CA. Constructed with concrete tilt-up, the building features 14-foot ceiling heights and is demisable for flexible use. It includes 3-phase power, a 2" gas line, two 10' x 12' grade loading doors, one 6' x 8' grade level door, and skylights. A small fenced outside storage area is also included. Zoned Industrial IL-2-1, this property presents an opportunity for owner/users or investors seeking industrial space.
Key Highlights
- 4,610 square foot industrial building in San Diego, CA
- Concrete tilt‑up construction with 14‑foot ceiling heights
- Demisable space for flexible 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
$66,882
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
3.13%
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%
$1,337,640
$1.3M
Cap Rate 7%
$955,457
$955.5K
Cap Rate 9%
$743,133
$743.1K
Market Conditions
NOI Build-Up for 4,610 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
$110.6K $24.00/SF
− Vacancy
−$7.7K −$1.68/SF
EGI
$102.9K $22.32/SF
− OpEx
−$36.0K −$7.81/SF
NOI
$66.9K $14.51/SF
Area
San Diego, CA
Vacancy
7.00%
Lease Rate
$24.00 /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%
$1,337,640
Cap Rate 7%
$955,457
Cap Rate 9%
$743,133
Alternative Uses
Best Use
Flex RnD
$955.5K
$836.0K – $1.11M
NOI $66,882 @ 7.0% cap · market cap 3.13%
Second Best
Industrial
$778.9K
$681.5K – $908.7K
NOI $54,520 @ 7.0% cap · market cap 2.55%
Theoretical Best
Specialty Retail
$1.82M
$1.59M – $2.12M
NOI $127,457 @ 7.0% cap · market cap 5.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,636
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 92121, CA
4,658
Population
1,774
Households
2.6
Avg Household Size
32
Median Age
75%
College-Educated
99%
High-School Grad
12.5 sq mi
ZIP Area
373
Density / Sq Mi
$135,795
Median Household Income
$70,431
Median Earnings
$2,537
Median Rent
$1,091,600
Median Home Value
Market
Vacancy Rate% for Industrial in San Diego, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - 4,610 SF industrial building with flexible space and storage.
Where is this flex space located?
The property is located at 8646 Commerce Ave San Diego, CA.
What is the asking price?
The asking price for this property is $2,135,000.
What are key features of this property?
This property features: 4,610 square foot industrial building in San Diego, CA; Concrete tilt‑up construction with 14‑foot ceiling heights; Demisable space for flexible use
