Industrial Flex Space with
For Sale
$1,950,000
988 California 36, Fortuna, CA 95540
Commercial Sale, Fortuna, CA
Property Size4,200 SF
Lot Size3.00 Acres
Price / SF$284.67
Days on Market48
Property Features for 988 California 36
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial
Directions
Hwy 101, turn east on Hwy 36, property is on the left
Subdivision
Mid County
Standard status
Active
Size
6,850 SF
Lot size
3.00 Acres
Building Details
Flooring type
Concrete
Building materials
Metal Siding, Aluminum Siding, Wood Siding
Roof type
Metal
Listing Agency:
Humboldt Equity, Inc.
(707) 682-8100
Listed By:
Matt Allen · License #01305904
(707) 498-3063
Added: Jul 27
Changed: Sep 5
Last Checked: Sep 12 at 5:06PM
MLS# 272963
Copyright © 2026 Humboldt Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This commercial-zoned flex property includes 3 acres of level land and 6,850 square feet across two warehouse buildings. The wood-sided warehouse contains 4,200 square feet with roll-up doors, retail and office areas, an ADA parking space, and a bathroom. A second metal building provides 2,650 square feet. Improvements include concrete flooring, metal roofing, perimeter fencing, a gated entrance, compacted gravel, and a drainage system.
The property fronts State Hwy 36 near the Hwy 101 interchange in Fortuna. Site infrastructure includes PG&E 3-phase power, a water well, and septic service. The zoning supports a broad range of uses and allows subdivision. Four tenants currently occupy the property; the offering consists of real estate only and excludes any business operations.
The property fronts State Hwy 36 near the Hwy 101 interchange in Fortuna. Site infrastructure includes PG&E 3-phase power, a water well, and septic service. The zoning supports a broad range of uses and allows subdivision. Four tenants currently occupy the property; the offering consists of real estate only and excludes any business operations.
Key Highlights
- 3 acres of flat commercial‑zoned land with State Hwy 36 frontage
- 6,850 square feet across two warehouse buildings
- Wood warehouse measures 4,200 square feet and includes roll‑up doors, retail and office space
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
$160,001
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
8.21%
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%
$3,200,020
$3.2M
Cap Rate 7%
$2,285,729
$2.3M
Cap Rate 9%
$1,777,789
$1.8M
Market Conditions
NOI Build-Up for 6,850 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
$254.8K $37.20/SF
− Vacancy
−$26.2K −$3.83/SF
EGI
$228.6K $33.37/SF
− OpEx
−$68.6K −$10.01/SF
NOI
$160.0K $23.36/SF
Area
Humboldt County, CA
Vacancy
10.30%
Lease Rate
$37.20 /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%
$3,200,020
Cap Rate 7%
$2,285,729
Cap Rate 9%
$1,777,789
Alternative Uses
Best Use
Flex RnD
$2.59M
$2.26M – $3.02M
NOI $181,080 @ 7.0% cap · market cap 9.29%
Second Best
Retail
$2.29M
$2.00M – $2.67M
NOI $160,001 @ 7.0% cap · market cap 8.21%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
17
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95540, CA
14,055
Population
6,087
Households
2.3
Avg Household Size
40
Median Age
24%
College-Educated
88%
High-School Grad
34.1 sq mi
ZIP Area
412
Density / Sq Mi
$62,346
Median Household Income
$37,309
Median Earnings
$1,135
Median Rent
$362,400
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Commercial-zoned property combines warehouse, office, and retail improvements with secured access and State Hwy 36 frontage.
Where is this flex space located?
The property is located at 988 California 36 Fortuna, CA.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: 3 acres of flat commercial‑zoned land with State Hwy 36 frontage; 6,850 square feet across two warehouse buildings; Wood warehouse measures 4,200 square feet and includes roll‑up doors, retail and office space
