A Vacant Melrose Storefront Just Hit the Market at $2.05M. Here Is the Math
Empty retail is supposed to be a problem. On Melrose Avenue, it is the entire opportunity.
7172 Melrose Ave, a freestanding 3,380 SF retail building between La Brea and Fairfax, just came to market at $2,050,000, delivered vacant. No tenant to inherit, no below market lease to wait out, no buyout negotiation. For anyone looking at Melrose retail for sale this year, that combination is rarer than it sounds, and the numbers behind it are worth walking through.
The short version: at $606.51 per square foot, the asking price sits inside the range of recent Melrose sales, the corridor’s asking rents support the pro forma, and the buyer pool is wider than a typical leased investment because owner users and retailers can compete for it, not just investors.
What you are actually buying on this stretch of Melrose
The building is one story, built in 1947, on a 4,400 SF lot with 40 feet of direct Melrose frontage. Inside there is a storefront, a set of private offices, a kitchenette, storage, and a restroom. Behind the building are four gated parking spaces in two tandem bays and an enclosed loading bay off the alley, which is not a given on this corridor. Utilities are separately metered.
The location does the heavy lifting. The property sits inside the Melrose Business Improvement District between La Brea and Fairfax, one of the most photographed retail strips in Los Angeles. Roughly 39,185 vehicles pass the front door every day, and the Walk Score of 97 rates it a Walker’s Paradise. Streetwear, cafes, and full service restaurants define the block, with Fairfax High School anchoring the western end and the Melrose Trading Post drawing crowds every Sunday.
The numbers, without the varnish
→ List price: $2,050,000
→ Price per building SF: $606.51
→ Price per land SF: $465.91
→ Building: 3,380 SF on a 4,400 SF lot
→ Zoning: LAC2
→ Pro forma NOI: $141,855
→ Pro forma cap rate: 6.92%
→ Also offered for lease at $3.95 per SF per month, NNN
Recent Melrose corridor sales have traded between $457 and $676 per square foot, which puts this asking price in the fairway rather than at the top of the range. On the leasing side, current asking rates on the corridor run from $2.70 to $5.00 per square foot per month, so the $3.95 NNN ask on this space sits mid market, roughly 9 to 10 percent below the two most recent comparable deals nearby.
Delivered vacant is the feature, not the flaw
A leased building hands you someone else’s decisions. A vacant building on a proven corridor hands you optionality, and that optionality is worth real money to three different buyers.
The owner user gets the cleanest win. Occupy day one, put your brand on 40 feet of Melrose frontage, and trade rent payments for equity in a corridor where retailers routinely pay $50,000 plus per year for far less visibility. SBA financing structures can make the monthly cost surprisingly close to renting.
The investor gets a blank canvas at a basis that recent sales support, with a pro forma cap rate of 6.92% once the space is leased at market. Signing your own tenant at today’s rates beats inheriting a stale lease at yesterday’s.
The retailer who is not ready to buy still has a path: the space is simultaneously offered for lease at $3.95 per square foot per month, NNN. Either way, the decision maker walking through the door gets to choose what Melrose sees on this corner for the next decade.
What this means if you own retail nearby
Every vacant sale on the corridor resets the comp set. If this building trades near asking, owners between La Brea and Fairfax get a fresh data point at $606 per foot for unleased product, which is useful leverage whether you are refinancing, selling, or negotiating your next lease renewal. If you have been waiting for evidence that Melrose retail values held through the vacancy cycle, this listing is the test case to watch.
See it for yourself
All property showings are by appointment only. The offering memorandum covers the full financials, comparable sales, rent comparables, and site details. View the full listing here.
If you are weighing a purchase or a lease on Melrose, or you own retail nearby and want to know what this listing does to your value, let’s talk.
Chandler Rockwell, The Rockwell Group
(310) 405-7632 | Chandler@fredleedsproperties.com | Lic. 02080782
Listed with Joe Baena, Christie’s International Real Estate SoCal | Lic. 02120743
Disclaimer: All information is from sources deemed reliable and subject to change. Buyers should independently verify all information, including zoning, square footage, permits, traffic counts, and financial projections, prior to close of escrow.
