Historic Office
New
For Sale
$6,350,000
11 5th Street, Petaluma, CA 94952
Fully occupied downtown office property with varied suite sizes and professional-service tenancy.
Property Size20,584 SF
Price / SF$317.50
Days on Market3
Property Features for 11 5th Street
General Information
Standard status
Active
Size
20,584 SF
Property subtype
Office
Occupancy
100%
Net Operating Income
$381,176
Additional Details
Gross Income
$574,003
Office Units
22
Building Details
Building Size
20,584 SF
Year Built
1911
Buildings
1
Tenancy
Multi
Listing Agency:
Artisan Sotheby's Int'l Realty
Listed By:
Jaime Gutierrez
2841111
Source:
Westgaterealestate
Added: Sep 1
Changed: Sep 2
Last Checked: Sep 2 at 2:25PM
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 Artisan Sotheby's Int'l Realty
Investment Insights
Based on property information with market context.
This approximately 20,000-square-foot office building contains 22 income-producing units, ranging from larger professional suites to compact executive offices. The property is fully occupied, with tenants drawn from financial services, insurance, healthcare, technology, consulting, and other professional fields. Lease expirations are distributed over time, with most agreements running into 2029–2031 and one continuing through 2036.
Located in downtown Petaluma at 11 5th Street, the property combines an established office configuration with significant architectural character. Built in 1911, it originated as Lincoln Primary School and was designed by architect Brainerd Jones. A columned facade and historic detailing distinguish the building within its downtown setting.
Located in downtown Petaluma at 11 5th Street, the property combines an established office configuration with significant architectural character. Built in 1911, it originated as Lincoln Primary School and was designed by architect Brainerd Jones. A columned facade and historic detailing distinguish the building within its downtown setting.
Key Highlights
- Approximately 20,000‑square‑foot office property with 22 income‑producing units
- Fully occupied by tenants in financial services, insurance, healthcare, technology, and consulting
- Suite mix includes larger professional offices and executive micro‑suites
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
$282,384
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
4.45%
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%
$5,647,680
$5.6M
Cap Rate 7%
$4,034,057
$4.0M
Cap Rate 9%
$3,137,600
$3.1M
Market Conditions
NOI Build-Up for 20,000 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
$444.0K $22.20/SF
− Vacancy
−$67.5K −$3.37/SF
EGI
$376.5K $18.83/SF
− OpEx
−$94.1K −$4.71/SF
NOI
$282.4K $14.12/SF
Area
Sonoma County, CA
Vacancy
15.20%
Lease Rate
$22.20 /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%
$5,647,680
Cap Rate 7%
$4,034,057
Cap Rate 9%
$3,137,600
Alternative Uses
Best Use
Office B
$4.03M
$3.53M – $4.71M
NOI $282,384 @ 7.0% cap · market cap 4.45%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$5.42M
$4.74M – $6.32M
NOI $379,368 @ 7.0% cap · market cap 5.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
22
Office units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,534
Businesses Nearby
Explore this area
Business Placement
Demographics for 94952, CA
33,619
Population
14,794
Households
2.3
Avg Household Size
45
Median Age
47%
College-Educated
92%
High-School Grad
198.5 sq mi
ZIP Area
169
Density / Sq Mi
$115,097
Median Household Income
$56,650
Median Earnings
$2,272
Median Rent
$1,016,800
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 - Fully occupied downtown office property with varied suite sizes and professional-service tenancy.
Where is this office building located?
The property is located at 11 5th Street Petaluma, CA.
What is the asking price?
The asking price for this property is $6,350,000.
What are key features of this property?
This property features: Approximately 20,000‑square‑foot office property with 22 income‑producing units; Fully occupied by tenants in financial services, insurance, healthcare, technology, and consulting; Suite mix includes larger professional offices and executive micro‑suites
