Industrial Building Near
For Sale
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SEC I-25 & Prospect Road, Fort Collins, CO 80525
Proposed industrial building with flexible spaces and outdoor storage.
Property Size24,000 SF
Price / SF$350
Days on Market885
Property Features for SEC I-25 & Prospect Road
General Information
Standard status
Active
Size
24,000 SF
Property subtype
Industrial
Investment Type
Owner/User
Building Details
Tenancy
Multi
Listing Agency:
URealty Inc
Listed By:
Matt Haskell · License #CO ER040012597
(970) 690-1690
Source:
Crexi
Added: Apr 2, 2024
Changed: Aug 23
Last Checked: Aug 29 at 9:46AM
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 URealty Inc
Investment Insights
Based on property information with market context.
A proposed 24,000 square foot industrial building is planned for the southeast corner of I-25 and Prospect Road in Fort Collins. Spaces will range from 3,000 to 24,000 square feet, accommodating a large industrial user or up to 8 tenants. The property will have high visibility from the main interstate in Northern Colorado and convenient access to Prospect Road, a main route into Fort Collins. The building will feature 12’x12’ and 14’x14’ overhead doors, with the possibility of accommodating larger doors throughout the building based on user needs. Additionally, the property includes 26,000 square feet of outdoor storage.
Key Highlights
- Highly visible location off I‑25 in Northern Colorado.
- Flexible space options ranging from 3,000 to 24,000 square feet.
- Convenient access to Prospect Road.
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
$241,416
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
2.87%
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%
$4,828,320
$4.8M
Cap Rate 7%
$3,448,800
$3.4M
Cap Rate 9%
$2,682,400
$2.7M
Market Conditions
NOI Build-Up for 24,000 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
$360.0K $15.00/SF
− Vacancy
−$15.1K −$0.63/SF
EGI
$344.9K $14.37/SF
− OpEx
−$103.5K −$4.31/SF
NOI
$241.4K $10.06/SF
Area
Fort Collins, CO
Vacancy
4.20%
Lease Rate
$15.00 /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%
$4,828,320
Cap Rate 7%
$3,448,800
Cap Rate 9%
$2,682,400
Alternative Uses
Best Use
Industrial
$3.45M
$3.02M – $4.02M
NOI $241,416 @ 7.0% cap · market cap 2.87%
Second Best
Flex RnD
$3.29M
$2.87M – $3.83M
NOI $229,975 @ 7.0% cap · market cap 2.74%
Theoretical Best
Office A
$6.25M
$5.47M – $7.29M
NOI $437,472 @ 7.0% cap · market cap 5.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
194
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 80525, CO
55,901
Population
25,144
Households
2.2
Avg Household Size
37
Median Age
59%
College-Educated
98%
High-School Grad
23.4 sq mi
ZIP Area
2,389
Density / Sq Mi
$93,349
Median Household Income
$48,876
Median Earnings
$1,744
Median Rent
$563,100
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 - Proposed industrial building with flexible spaces and outdoor storage.
Where is this flex space located?
The property is located at SEC I-25 & Prospect Road Fort Collins, CO.
What is the asking price?
The asking price for this property is $8,400,000.
What are key features of this property?
This property features: Highly visible location off I‑25 in Northern Colorado.; Flexible space options ranging from 3,000 to 24,000 square feet.; Convenient access to Prospect Road.
