Multi-Tenant Retail
For Sale
$3,399,000
A-2525 Soquel Dr, Santa Cruz, CA 95065
Multi-tenant retail center with 35-space parking, leased to three tenants, and zoned C1.
Property Size7,500 SF
Lot Size0.60 Acres
Price / SF$453.20
Days on Market129
Property Features for A-2525 Soquel Dr
General Information
Standard status
Active
Size
7,500 SF
Total Parking Spaces
35
Lot size
0.60 Acres
Zoning
C1
Site & Location
Traffic Count
20,000 vehicles/day
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$42,487
Building Details
Tenancy
Multi
Listing Agency:
David Lyng Real Estate
(831) 818-0771
Listed By:
Gina Carling · License #01480003
(831) 818-0771
Source:
Exprealty
Added: Apr 26
Changed: Aug 20
Last Checked: Aug 30 at 11:45PM
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 David Lyng Real Estate
Investment Insights
Based on property information with market context.
2525 Soquel Dr is a multi-tenant commercial retail building offering 7,500 square feet of gross leasable area on a 0.6-acre lot. The property includes a 35-space parking lot with ingress and egress from both Soquel Drive and Winkle Avenue, supporting convenient access for tenants and customers.
The asset is positioned along one of Santa Cruz County’s most traveled corridors, with high-profile exposure on Soquel Drive and an estimated 20,000+ vehicles per day. It is currently leased to three long-term tenants.
Zoned C1, this property presents a practical option for both investors and owner-users seeking a retail asset with established tenancy and direct access from two streets.
The asset is positioned along one of Santa Cruz County’s most traveled corridors, with high-profile exposure on Soquel Drive and an estimated 20,000+ vehicles per day. It is currently leased to three long-term tenants.
Zoned C1, this property presents a practical option for both investors and owner-users seeking a retail asset with established tenancy and direct access from two streets.
Key Highlights
- Multi‑tenant commercial building with 7,500 SF gross leasable area on a 0.6‑acre lot
- Leased to three long‑term tenants with a consistent income history
- 35‑space parking lot with ingress/egress from both Soquel Drive and Winkle Avenue
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
$300,195
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
8.83%
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%
$6,003,900
$6.0M
Cap Rate 7%
$4,288,500
$4.3M
Cap Rate 9%
$3,335,500
$3.3M
Market Conditions
NOI Build-Up for 7,500 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
$450.0K $60.00/SF
− Vacancy
−$21.2K −$2.82/SF
EGI
$428.9K $57.18/SF
− OpEx
−$128.7K −$17.15/SF
NOI
$300.2K $40.03/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$60.00 /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%
$6,003,900
Cap Rate 7%
$4,288,500
Cap Rate 9%
$3,335,500
Alternative Uses
Best Use
Retail
$4.29M
$3.75M – $5.00M
NOI $300,195 @ 7.0% cap · market cap 8.83%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
20,000 VPD
Traffic count
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,405
Businesses Nearby
97k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 52%
Shops & Services 36%
Office Supplies 8%
Dining 3%
Marshalls
Apparel
47,056 visits/mo
0.3 miles
Shell
Shops & Services
12,712 visits/mo
0.3 miles
7-Eleven
Shops & Services
10,985 visits/mo
0.3 miles
Wells Fargo
Shops & Services
9,021 visits/mo
0.4 miles
Staples
Office Supplies
7,997 visits/mo
0.4 miles
Demographics for 95065, CA
8,444
Population
3,090
Households
2.7
Avg Household Size
46
Median Age
50%
College-Educated
96%
High-School Grad
10.9 sq mi
ZIP Area
775
Density / Sq Mi
$142,768
Median Household Income
$52,963
Median Earnings
$2,618
Median Rent
$1,192,200
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Multi-tenant retail center with 35-space parking, leased to three tenants, and zoned C1.
Where is this strip mall located?
The property is located at A-2525 Soquel Dr Santa Cruz, CA.
What is the asking price?
The asking price for this property is $3,399,000.
What are key features of this property?
This property features: Multi‑tenant commercial building with 7,500 SF gross leasable area on a 0.6‑acre lot; Leased to three long‑term tenants with a consistent income history; 35‑space parking lot with ingress/egress from both Soquel Drive and Winkle Avenue
