Downtown Two-Unit Office
For Sale
$995,000
109 E Alisal Street, Salinas, CA 93901
Two separate office suites with private offices, courtyard, updates, and on-site parking in downtown Salinas.
Property Size3,770 SF
Price / SF$263.93
Days on Market82
Property Features for 109 E Alisal Street
General Information
Standard status
Active
Size
3,770 SF
Total Parking Spaces
12
Property subtype
Commercial/Industrial
Occupancy
50%
Additional Details
Traffic Count
1,000 vehicles/day
Office Units
2
Taxes and HOA fees
Annual Taxes
$11,940
Building Details
Year Built
1947
Tenancy
Multi
Listing Agency:
Agency One Real Estate
(831) 262-1955
Listed By:
Sean Griffin · License #01466508
(831) 262-1955
Source:
Exitrealty
Added: May 22
Changed: Aug 8
Last Checked: Aug 10 at 5:36AM
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 Agency One Real Estate
Investment Insights
Based on property information with market context.
This for-sale office building totals 3,770 square feet, with an approximately 800-square-foot basement that is not included in the stated total. The property is split into two independent units, with one side currently occupied and the other set to be delivered vacant for an owner-user or additional leasing. The larger suite includes multiple private offices, a conference room, kitchen area, private bathroom, a private outdoor courtyard, and multiple storage areas. The smaller unit features hardwood flooring, a kitchen, a private bathroom, and a storage room. Overall building condition is described as good, with updates in recent years that include a new roof, new windows, new flooring, and new paint.
The building is located in downtown Salinas near the heart of the business district, within walking distance to shops and restaurants. Public remarks also note more than 1,000 cars per day passing the property, along with nearby on-street parking. There are 12 parking spaces on site.
For tenants and owner-users, the layout supports a professional, private-office environment with conference and kitchen amenities, plus outdoor space for the larger unit. For investors, the two-unit configuration offers the flexibility to occupy one side while leasing the other, or rent both suites depending on operational goals.
The building is located in downtown Salinas near the heart of the business district, within walking distance to shops and restaurants. Public remarks also note more than 1,000 cars per day passing the property, along with nearby on-street parking. There are 12 parking spaces on site.
For tenants and owner-users, the layout supports a professional, private-office environment with conference and kitchen amenities, plus outdoor space for the larger unit. For investors, the two-unit configuration offers the flexibility to occupy one side while leasing the other, or rent both suites depending on operational goals.
Key Highlights
- 3770 sq ft office building (built 1947) in downtown Salinas with approx 800 sq ft basement not included in total sqft
- Split into two suites: one tenant uses approx 1500 sq ft and pays $1950/month
- Second suite totals approx 2270 sq ft (with approx 800 sq ft basement) and will be delivered vacant for owner‑user use
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
$58,224
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
5.85%
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%
$1,164,480
$1.2M
Cap Rate 7%
$831,771
$831.8K
Cap Rate 9%
$646,933
$646.9K
Market Conditions
NOI Build-Up for 3,770 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
$99.5K $26.40/SF
− Vacancy
−$21.9K −$5.81/SF
EGI
$77.6K $20.59/SF
− OpEx
−$19.4K −$5.15/SF
NOI
$58.2K $15.44/SF
Area
Salinas, CA
Vacancy
22.00%
Lease Rate
$26.40 /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%
$1,164,480
Cap Rate 7%
$831,771
Cap Rate 9%
$646,933
Alternative Uses
Best Use
Office B
$831.8K
$727.8K – $970.4K
NOI $58,224 @ 7.0% cap · market cap 5.85%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.19M
$1.04M – $1.38M
NOI $83,097 @ 7.0% cap · market cap 8.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
1,000 VPD
Traffic count
50%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,982
Businesses Nearby
Explore this area
Business Placement
Demographics for 93901, CA
29,700
Population
11,328
Households
2.6
Avg Household Size
37
Median Age
29%
College-Educated
81%
High-School Grad
9.6 sq mi
ZIP Area
3,094
Density / Sq Mi
$91,639
Median Household Income
$47,620
Median Earnings
$1,792
Median Rent
$721,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two separate office suites with private offices, courtyard, updates, and on-site parking in downtown Salinas.
Where is this office building located?
The property is located at 109 E Alisal Street Salinas, 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: 3770 sq ft office building (built 1947) in downtown Salinas with approx 800 sq ft basement not included in total sqft; Split into two suites: one tenant uses approx 1500 sq ft and pays $1950/month; Second suite totals approx 2270 sq ft (with approx 800 sq ft basement) and will be delivered vacant for owner‑user use
