San Rafael Commercial Building For
For Sale
$599,000
1108 Tamalpais, San Rafael, CA 94901
Two-story commercial building in downtown San Rafael, fully leased.
Property Size2,000 SF
Lot Size0.03 Acres
Price / SF$299.50
Days on Market229
Property Features for 1108 Tamalpais
General Information
Standard status
Active
Size
2,000 SF
Lot size
0.03 Acres
Property subtype
Commercial
Amenities
Central air
Sidewalk
Tar/Gravel Roof
Wall Furnace Heating
Wall Unit(s) Cooling
Building Details
Year Built
1963
Listing Agency:
COLDWELL BANKER REALTY
4563000
Listed By:
STEVE RAGGHIANTI · License #01343409
Source:
Corcoran
Added: Jan 5
Changed: Aug 21
Last Checked: Aug 21 at 7:16AM
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 COLDWELL BANKER REALTY
Investment Insights
Based on property information with market context.
This two-story, standalone commercial building presents an investor opportunity. The upstairs suite features three individual, recently updated treatment rooms. The downstairs area includes two office suites, each approximately 500 square feet. The building is fully leased with a 7-year term commencing on December 1, 2024. It is situated in Downtown San Rafael, offering convenient access to the freeway, railway, and restaurants. The property has a 6.09 Cap Rate and a total size of 2000 square feet.
Key Highlights
- Fully leased commercial building with a 7‑year term beginning 12/01/24.
- Attractive 6.09% Cap Rate.
- Located in Downtown San Rafael, offering convenient access to amenities.
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
$40,418
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
6.75%
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%
$808,360
$808.4K
Cap Rate 7%
$577,400
$577.4K
Cap Rate 9%
$449,089
$449.1K
Market Conditions
NOI Build-Up for 2,000 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
$72.2K $36.12/SF
− Vacancy
−$18.3K −$9.17/SF
EGI
$53.9K $26.95/SF
− OpEx
−$13.5K −$6.74/SF
NOI
$40.4K $20.21/SF
Area
Marin County, CA
Vacancy
25.40%
Lease Rate
$36.12 /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%
$808,360
Cap Rate 7%
$577,400
Cap Rate 9%
$449,089
Alternative Uses
Best Use
Office B
$577.4K
$505.2K – $673.6K
NOI $40,418 @ 7.0% cap · market cap 6.75%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$9.77M
$8.55M – $11.40M
NOI $683,843 @ 7.0% cap · market cap 114.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,635
Businesses Nearby
Explore this area
Business Placement
Demographics for 94901, CA
43,338
Population
16,412
Households
2.6
Avg Household Size
40
Median Age
48%
College-Educated
82%
High-School Grad
13.1 sq mi
ZIP Area
3,308
Density / Sq Mi
$108,837
Median Household Income
$50,122
Median Earnings
$2,229
Median Rent
$1,369,500
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-story commercial building in downtown San Rafael, fully leased.
Where is this office building located?
The property is located at 1108 Tamalpais San Rafael, CA.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: Fully leased commercial building with a 7‑year term beginning 12/01/24.; Attractive 6.09% Cap Rate.; Located in Downtown San Rafael, offering convenient access to amenities.
