Multi-Suite Office
For Sale
$3,500,000
1939 Divisadero Street, San Francisco, CA 94115
San Francisco, CA
Property Size7,179 SF
Price / SF$487.53
Days on Market70
Property Features for 1939 Divisadero Street
General Information
Property type
Residential
Property subtype
Office
Standard status
Active
Size
7,179 SF
Building Details
Year built
1923
Listing Agency:
Engel & Volkers San Francisco Union Street · Engel & Völkers
(415) 689-8592
Listed By:
Michael B Johnston
(415) 794-6453
Added: Jun 26
Changed: Aug 19
Last Checked: Sep 3 at 7:06PM
MLS# 426142225
Copyright © 2026 Engel & Völkers. 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.
Located at 1939 Divisadero Street, this 7,179-square-foot office property was built in 1923 and converted from its original apartment configuration into professional suites. The building includes 24 individual office spaces along with one ground-floor retail suite, creating a varied commercial layout within a single asset. The existing occupants are primarily therapists and counseling professionals, and three office spaces are currently vacant.
The property is positioned along the Divisadero corridor in San Francisco and is professionally managed. Its current in-place capitalization rate is 6.5%. The layout supports continued operation as a multi-tenant office property while also allowing a future owner to occupy space and retain income from the balance of the building. Current management may be available to continue after a sale.
The property is positioned along the Divisadero corridor in San Francisco and is professionally managed. Its current in-place capitalization rate is 6.5%. The layout supports continued operation as a multi-tenant office property while also allowing a future owner to occupy space and retain income from the balance of the building. Current management may be available to continue after a sale.
Key Highlights
- 7,179‑square‑foot office property at 1939 Divisadero Street
- Built in 1923 and converted from an apartment building to professional office suites
- 24 individual office spaces plus one ground‑floor retail suite
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
$176,893
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
5.05%
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%
$3,537,860
$3.5M
Cap Rate 7%
$2,527,043
$2.5M
Cap Rate 9%
$1,965,478
$2.0M
Market Conditions
NOI Build-Up for 7,179 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
$316.2K $44.04/SF
− Vacancy
−$80.3K −$11.19/SF
EGI
$235.9K $32.85/SF
− OpEx
−$59.0K −$8.21/SF
NOI
$176.9K $24.64/SF
Area
San Francisco, CA
Vacancy
25.40%
Lease Rate
$44.04 /SF/Yr
Expense Ratio
25.00%
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%
$3,537,860
Cap Rate 7%
$2,527,043
Cap Rate 9%
$1,965,478
Alternative Uses
Best Use
Office B
$2.53M
$2.21M – $2.95M
NOI $176,893 @ 7.0% cap · market cap 5.05%
Second Best
Healthcare Medical
$1.95M
$1.71M – $2.27M
NOI $136,458 @ 7.0% cap · market cap 3.90%
Theoretical Best
Specialty Retail
$35.07M
$30.68M – $40.91M
NOI $2,454,653 @ 7.0% cap · market cap 70.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
24
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
8,217
Businesses Nearby
Explore this area
Business Placement
Demographics for 94115, CA
35,853
Population
19,312
Households
1.9
Avg Household Size
38
Median Age
74%
College-Educated
96%
High-School Grad
1.1 sq mi
ZIP Area
32,594
Density / Sq Mi
$154,264
Median Household Income
$103,538
Median Earnings
$2,380
Median Rent
$1,684,100
Median Home Value
Market
Vacancy Rate% for Office in San Francisco, CA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Converted 1923 building with professional offices, a ground-floor retail suite, and flexible owner-user potential.
Where is this office building located?
The property is located at 1939 Divisadero Street San Francisco, CA.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 7,179‑square‑foot office property at 1939 Divisadero Street; Built in 1923 and converted from an apartment building to professional office suites; 24 individual office spaces plus one ground‑floor retail suite
