Renovated Carlsbad Office
For Sale
Contact for pricing
5055 Avenida Encinas, Carlsbad, CA 92008
Fully renovated office building near I-5 and the beach.
Property Size20,375 SF
Lot Size1.00 Acre
Price / SF$319.02
Days on Market854
Property Features for 5055 Avenida Encinas
General Information
Standard status
Active
Size
20,375 SF
Lot size
1.00 Acre
Property subtype
Office
Occupancy
93%
Net Operating Income
$269,610
Building Details
Year Built
1985
Year Renovated
2023
Buildings
1
Stories
2
Units
10
Listing Agency:
Marcus & Millichap - San Diego
Listed By:
Ali Valiahdi · License #CA 01980677
(858) 373-3288
Source:
Crexi
Added: May 2, 2024
Changed: Aug 31
Last Checked: Aug 31 at 8:00PM
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 Marcus & Millichap - San Diego
Investment Insights
Based on property information with market context.
Plaza Encinas presents a rare opportunity to acquire a fully renovated, two-story office building in Carlsbad, California. Constructed in 1985, the wood frame and stucco building encompasses approximately 20,375 square feet and is situated on a 1.0-acre parcel. The property is located west of the I-5 Freeway, less than a quarter mile from the Interstate and within a 10-minute walk to the beach. A full transformation of the property began in late 2020 and was completed in late 2023. Renovations included a new façade, window line, front and patio doors, exterior lighting, and parking resurfacing. HVAC systems with individual climate controls and new desert landscaping were added for more efficient management. The lobby was fully updated, and a brand-new elevator was installed, along with a new security system. All leases expire before 2025, offering flexibility for an owner-user or tenant to occupy the entire building.
Key Highlights
- Fully renovated office building completed late 2023.
- Prime location west of I‑5 Freeway in Carlsbad, CA, just a 10‑minute walk to the beach.
- Flexible usage with all leases expiring before 2025, ideal for owner‑user or single tenant.
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
$438,725
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
6.75%
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%
$8,774,500
$8.8M
Cap Rate 7%
$6,267,500
$6.3M
Cap Rate 9%
$4,874,722
$4.9M
Market Conditions
NOI Build-Up for 20,375 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
$672.4K $33.00/SF
− Vacancy
−$87.4K −$4.29/SF
EGI
$585.0K $28.71/SF
− OpEx
−$146.2K −$7.18/SF
NOI
$438.7K $21.53/SF
Area
Carlsbad, CA
Vacancy
13.00%
Lease Rate
$33.00 /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%
$8,774,500
Cap Rate 7%
$6,267,500
Cap Rate 9%
$4,874,722
Alternative Uses
Best Use
Office B
$6.27M
$5.48M – $7.31M
NOI $438,725 @ 7.0% cap · market cap 6.75%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.49M
$6.55M – $8.74M
NOI $524,130 @ 7.0% cap · market cap 8.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
897
Businesses Nearby
Explore this area
Business Placement
Demographics for 92008, CA
27,282
Population
13,102
Households
2.1
Avg Household Size
43
Median Age
56%
College-Educated
97%
High-School Grad
10.4 sq mi
ZIP Area
2,623
Density / Sq Mi
$105,371
Median Household Income
$55,965
Median Earnings
$2,343
Median Rent
$1,142,300
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Fully renovated office building near I-5 and the beach.
Where is this office building located?
The property is located at 5055 Avenida Encinas Carlsbad, CA.
What is the asking price?
The asking price for this property is $6,500,000.
What are key features of this property?
This property features: Fully renovated office building completed late 2023.; Prime location west of I‑5 Freeway in Carlsbad, CA, just a 10‑minute walk to the beach.; Flexible usage with all leases expiring before 2025, ideal for owner‑user or single tenant.
