Midtown Sacramento Two-Story Office
For Sale
Contact for pricing
1016 23rd Street, Sacramento, CA 95816
2,962 SF office building in the heart of Midtown.
Property Size2,962 SF
Price / SF$335.92
Days on Market747
Property Features for 1016 23rd Street
General Information
Standard status
Active
Size
2,962 SF
Total Parking Spaces
7
Property subtype
Office
Zoning
C-2 SPD
Lease Type
NNN
Investment Type
Owner/User
Building Details
Year Built
1967
Year Renovated
2023
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
Turton Commercial Real Estate
Listed By:
Kaylyn Ibarra · License #02350645
(916) 573-3305
Source:
Crexi
Added: Aug 24, 2024
Changed: Sep 7
Last Checked: Sep 8 at 7:45AM
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 Turton Commercial Real Estate
Investment Insights
Based on property information with market context.
This 2,962 square foot, two-story office building is located in the heart of Midtown Sacramento. The property offers a blend of creative office space and amenities in the central city. On-site parking and improvements are designed to attract talent, whether for the owner's business or for leasing. The Midtown location places the building at the center of Sacramento’s business community, surrounded by entrepreneurs and established companies. The location provides access to dining, shopping, entertainment, and cultural attractions. A Midtown address elevates business prestige and credibility. Owning the space provides stability, shielding the business from rising rental costs and lease renewal uncertainties. The property is located at 1016 23rd Street.
Key Highlights
- Prime Midtown Sacramento location, offering unparalleled access to dining, shopping, entertainment, and cultural attractions.
- Turn‑key, two‑story office building with 2,962 square feet of creative office space.
- On‑site parking available.
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
$40,355
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
4.06%
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%
$807,100
$807.1K
Cap Rate 7%
$576,500
$576.5K
Cap Rate 9%
$448,389
$448.4K
Market Conditions
NOI Build-Up for 2,962 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
$64.0K $21.60/SF
− Vacancy
−$10.2K −$3.43/SF
EGI
$53.8K $18.17/SF
− OpEx
−$13.5K −$4.54/SF
NOI
$40.4K $13.62/SF
Area
Sacramento, CA
Vacancy
15.90%
Lease Rate
$21.60 /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%
$807,100
Cap Rate 7%
$576,500
Cap Rate 9%
$448,389
Alternative Uses
Best Use
Office B
$576.5K
$504.4K – $672.6K
NOI $40,355 @ 7.0% cap · market cap 4.06%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$795.9K
$696.4K – $928.6K
NOI $55,715 @ 7.0% cap · market cap 5.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
7,012
Businesses Nearby
Explore this area
Business Placement
Demographics for 95816, CA
18,606
Population
11,553
Households
1.6
Avg Household Size
36
Median Age
65%
College-Educated
98%
High-School Grad
2.7 sq mi
ZIP Area
6,891
Density / Sq Mi
$90,521
Median Household Income
$61,407
Median Earnings
$1,647
Median Rent
$789,700
Median Home Value
Market
Vacancy Rate% for Office in Sacramento, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - 2,962 SF office building in the heart of Midtown.
Where is this office building located?
The property is located at 1016 23rd Street Sacramento, CA.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: Prime Midtown Sacramento location, offering unparalleled access to dining, shopping, entertainment, and cultural attractions.; Turn‑key, two‑story office building with 2,962 square feet of creative office space.; On‑site parking available.
