San Luis Obispo Commercial Information
Since residential real estate purchases and prices have been cooling down nationwide, questions are being raised about the status of Commercial Real Estate. People sometimes assume that if houses are not selling as well as can be expected, then the commercial market is at risk as well.
However, according to the Real Estate Journal:
“The national office market, which cratered after the tech bust in 2000, has recovered and is the strongest it has been in five years. The shopping mall market has stayed strong because consumer spending held up better than expected. And hotels had their most profitable year ever in 2005, partly because of strong business travel.”
Investment strategists tell us that although the residential market, which is comprised mainly of private individuals, are tied to interest rates and income, commercial investors are not necessarily tied to mortgage rates because they come from more diverse groups. Some of these commercial investors do not need to borrow money because they are able to pay cash.
Rated as the third best place in the country to live, San Luis Obispo County’s fast growing population simultaneously creates a need for commercial services. As a result, availability of space to establish a commercial enterprise is crucial to the growth of the area which includes Atascadero, Paso Robles, Santa Margarita, Morro Bay, Cayucos, Cambria, Los Osos, Avila Beach, Pismo Beach, Grover Beach, Oceano, Nipomo, Santa Maria and Arroyo Grande.
The following are the rental costs for commercial space:
Retail and Shopping Center Rates
Monthly rental cost for an average shopping center location start at $1.05 per sq. ft. per month and can reach $4.00 per sq. ft. per month for prime downtown locations.
Office Rates
Monthly rental cost for an office/warehouse space start at $.95 per sq. ft. per month and range to $1.40 for professional/medical office buildings.
Industrial Rates
Monthly rental cost for warehouse space starts at $.65-.80 per sq. ft. per month and averages $1.10 for combination warehouse/office building.
Utility Rates:
Water
Industrial and Residential Users -
Monthly Billing Rates: $2.93 per ccf up to 10 ccf over 10++ ccf
(ccf=100 cubic feet or 748 gallons)
Sewer
Industrial User Permit Fees -
Significant Users: $747 annual fee
Class I: $259 annual fee
Class II: $79 annual fee
Commercial
Minimum Charge: $50.48/bimonthly
Additional charge for every 100 cubic feet in excess of 500 cubic of metered water consumption $2.96/100 cubic feet.
Examples of commercial space for rent:
Office space: Brand new building in beautiful location, very modern, 1,028 square feet, 2 medium offices, 1 large office with small waiting room in front, small break room with sink, refrigerator and storage cabinets. Use of creekside patios and conference room. Rent $1,500 + $350 monthly expenses.
Industrial space: 2,500 square feet, store front entrance, rear roll up door - $2,000 per month.
Industrial space: Unique office unit with warehouse space. Visible from major city street. Onsite parking. 3,000 square feet, $1.40 per square foot, lease type: modified gross, zoned C-S-PD.
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