Flex/Warehouse Single-Tenant
For Sale
$5,000,000
8697 Research Drive, Irvine, CA 92618
Single-tenant flex/warehouse with front office reception, showroom/assembly area, and rear warehouse with roll-up doors.
Property Size10,325 SF
Price / SF$484.26
Days on Market121
Property Features for 8697 Research Drive
General Information
Standard status
Active
Size
10,325 SF
Property subtype
Industrial
Additional Details
Highway Access
Yes
Amenities
Central Air
3
24 Parking Spaces.
Paved. Paved Road.
Building Details
Stories
2
Tenancy
Single
Listing Agency:
Coastal Elite Real Estate, Inc.
(949) 481-2600
Listed By:
Gerald Leonard · License #00600803
Source:
Xome
Added: May 1
Changed: Aug 26
Last Checked: Aug 29 at 6:18AM
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 Coastal Elite Real Estate, Inc.
Investment Insights
Based on property information with market context.
This free-standing single-tenant property is configured for a mix of office and industrial operations. At the front entrance, a large reception area leads to office spaces, with additional rooms along the hallway that can serve as offices or storage. The adjacent showroom/assembly/R&D area measures approximately 58' wide by 55' deep and features 12' tall lighted acoustic ceilings.
The rear warehouse measures approximately 52' by 38' with 30' ceilings and two corrugated roll-up doors, each approximately 8' wide by 12' high. The second floor, accessed off the front reception area, includes additional rooms suitable for offices or further storage.
The property is located in the Irvine Spectrum area with immediate access to I-405, I-5, SR-133, and SR-73. Retail business, restaurants, and the Irvine Spectrum Shopping Center are within walking distance, and the listing notes proximity to Laguna Beach, Fashion Island, Tustin Marketplace, and John Wayne Airport.
The rear warehouse measures approximately 52' by 38' with 30' ceilings and two corrugated roll-up doors, each approximately 8' wide by 12' high. The second floor, accessed off the front reception area, includes additional rooms suitable for offices or further storage.
The property is located in the Irvine Spectrum area with immediate access to I-405, I-5, SR-133, and SR-73. Retail business, restaurants, and the Irvine Spectrum Shopping Center are within walking distance, and the listing notes proximity to Laguna Beach, Fashion Island, Tustin Marketplace, and John Wayne Airport.
Key Highlights
- Free‑standing single‑tenant flex/warehouse in the Irvine Spectrum area.
- Front reception area with office spaces, plus additional rooms for offices or storage off the hallway.
- Large showroom/assembly/R&D area approx. 58' wide x 55' deep with 12' tall lighted acoustic ceilings.
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
$171,479
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
3.43%
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%
$3,429,580
$3.4M
Cap Rate 7%
$2,449,700
$2.4M
Cap Rate 9%
$1,905,322
$1.9M
Market Conditions
NOI Build-Up for 10,325 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
$273.8K $26.52/SF
− Vacancy
−$45.2K −$4.38/SF
EGI
$228.6K $22.14/SF
− OpEx
−$57.2K −$5.54/SF
NOI
$171.5K $16.61/SF
Area
ZIP 92618
Vacancy
16.50%
Lease Rate
$26.52 /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%
$3,429,580
Cap Rate 7%
$2,449,700
Cap Rate 9%
$1,905,322
Alternative Uses
Best Use
Office B
$2.45M
$2.14M – $2.86M
NOI $171,479 @ 7.0% cap · market cap 3.43%
Second Best
Warehouse
$2.32M
$2.03M – $2.70M
NOI $162,097 @ 7.0% cap · market cap 3.24%
Theoretical Best
Office A
$3.40M
$2.98M – $3.97M
NOI $238,007 @ 7.0% cap · market cap 4.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,937
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 92618, CA
57,488
Population
26,470
Households
2.2
Avg Household Size
35
Median Age
72%
College-Educated
97%
High-School Grad
20.7 sq mi
ZIP Area
2,777
Density / Sq Mi
$135,609
Median Household Income
$85,192
Median Earnings
$3,053
Median Rent
$1,153,400
Median Home Value
Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Single-tenant flex/warehouse with front office reception, showroom/assembly area, and rear warehouse with roll-up doors.
Where is this flex space located?
The property is located at 8697 Research Drive Irvine, CA.
What is the asking price?
The asking price for this property is $5,000,000.
What are key features of this property?
This property features: Free‑standing single‑tenant flex/warehouse in the Irvine Spectrum area.; Front reception area with office spaces, plus additional rooms for offices or storage off the hallway.; Large showroom/assembly/R&D area approx. 58' wide x 55' deep with 12' tall lighted acoustic ceilings.
