Turnkey Industrial Asset in
For Sale
$340,000
914 Sandstone Ave, Farmington, NM 87401
Clean, efficient commercial facility with office, shop, and storage space.
Property Size3,836 SF
Price / SF$88.63
Days on Market154
Property Features for 914 Sandstone Ave
General Information
Standard status
Active
Size
3,836 SF
Taxes and HOA fees
Annual Taxes
$3,232
Listing Agency:
eXp Realty, LLC
(505) 686-3831
Listed By:
Allen Elmore · License #FA100100921
(505) 686-3831
Source:
Exprealty
Added: Mar 27
Changed: Aug 25
Last Checked: Aug 26 at 11:06AM
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 eXp Realty, LLC
Investment Insights
Based on property information with market context.
This commercial facility in Farmington is located in the Southeast corridor near US Hwy 64 and Browning Parkway, offering truck access and a functional layout. The property includes a 2,164 square foot shop, 836 square feet of professional office space, and an additional 836 square foot loft storage area with 8-foot ceilings. The front entry leads to a reception or sitting area with a kitchenette that includes Corian countertops, cabinetry, and a refrigerator with ice maker. There are two private offices, and two ADA-compliant restrooms, one with a shower. The shop area features 16-foot ceilings, insulated construction, 8-foot finished metal interior walls, new LED lighting, air plumbing, a utility sink, a 12' x 12' roll-up door, and a separate man door. Climate control is provided by two evaporative coolers and two gas heaters. The property has three-phase electrical service. The loft offers organized storage with shelving and full-height ceilings. Exterior improvements include a 55' x 122' asphalt parking area and a 3,400 square foot fenced backyard. This industrial asset is suitable for contractors, trades, service companies, light manufacturing, or logistics operations.
Key Highlights
- Ideally located in the Southeast corridor near US Hwy 64 and Browning Parkway with outstanding truck access.
- Turnkey industrial asset designed for contractors, trades, service companies, light manufacturing, or logistics operations.
- Shop features 16‑foot ceilings, insulated construction, 8‑foot finished metal interior walls, new LED lighting, air plumbing, a utility sink, a 12' x 12' roll‑up door, and a separate man door.
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
$23,547
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
6.93%
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%
$470,940
$470.9K
Cap Rate 7%
$336,386
$336.4K
Cap Rate 9%
$261,633
$261.6K
Market Conditions
NOI Build-Up for 3,836 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
$36.4K $9.48/SF
− Vacancy
−$2.7K −$0.71/SF
EGI
$33.6K $8.77/SF
− OpEx
−$10.1K −$2.63/SF
NOI
$23.5K $6.14/SF
Area
San Juan County, NM
Vacancy
7.50%
Lease Rate
$9.48 /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%
$470,940
Cap Rate 7%
$336,386
Cap Rate 9%
$261,633
Alternative Uses
Best Use
Industrial
$336.4K
$294.3K – $392.5K
NOI $23,547 @ 7.0% cap · market cap 6.93%
Second Best
Flex RnD
$221.4K
$193.7K – $258.3K
NOI $15,499 @ 7.0% cap · market cap 4.56%
Theoretical Best
Office A
$793.6K
$694.4K – $925.8K
NOI $55,549 @ 7.0% cap · market cap 16.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
148
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 87401, NM
44,724
Population
17,611
Households
2.5
Avg Household Size
34
Median Age
19%
College-Educated
88%
High-School Grad
132.8 sq mi
ZIP Area
337
Density / Sq Mi
$56,358
Median Household Income
$31,362
Median Earnings
$983
Median Rent
$202,400
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Clean, efficient commercial facility with office, shop, and storage space.
Where is this flex space located?
The property is located at 914 Sandstone Ave Farmington, NM.
What is the asking price?
The asking price for this property is $340,000.
What are key features of this property?
This property features: Ideally located in the Southeast corridor near US Hwy 64 and Browning Parkway with outstanding truck access.; Turnkey industrial asset designed for contractors, trades, service companies, light manufacturing, or logistics operations.; Shop features **16‑foot ceilings**, insulated construction, **8‑foot finished metal interior walls**, new LED lighting, air plumbing, a utility sink, a 12' x 12' roll‑up door, and a separate man door.
