Two-Story Office Building For
For Sale
$1,500,000
332 Petaluma, Sebastopol, CA 95472
Two-story office building with four individual offices and ample storage.
Property Size3,692 SF
Price / SF$406.28
Days on Market481
Property Features for 332 Petaluma
General Information
Standard status
Active
Size
3,692 SF
Building Details
Year Built
1974
Listing Agency:
O'BRIEN REAL ESTATE
(707) 586-9900
Listed By:
RICHARD O'BRIEN
Source:
Corcoran
Added: May 7, 2025
Changed: Mar 16
Last Checked: Apr 24 at 6:37PM
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 O'BRIEN REAL ESTATE
Investment Insights
Based on property information with market context.
This two-story office building is zoned for commercial office use. The building features four individual offices, each with separately metered HVAC. Common areas include a kitchenette and two restrooms. The second story provides ample storage space suitable for office-related materials. The sale includes two additional parcels. The property has a size of 3692 square feet.
Key Highlights
- Commercial Office Zoning
- 2 Story Office Building with 4 Individual Offices
- Separately Metered HVAC
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
$52,128
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
3.48%
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%
$1,042,560
$1.0M
Cap Rate 7%
$744,686
$744.7K
Cap Rate 9%
$579,200
$579.2K
Market Conditions
NOI Build-Up for 3,692 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
$82.0K $22.20/SF
− Vacancy
−$12.5K −$3.37/SF
EGI
$69.5K $18.83/SF
− OpEx
−$17.4K −$4.71/SF
NOI
$52.1K $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%
$1,042,560
Cap Rate 7%
$744,686
Cap Rate 9%
$579,200
Alternative Uses
Best Use
Office B
$744.7K
$651.6K – $868.8K
NOI $52,128 @ 7.0% cap · market cap 3.48%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.00M
$875.4K – $1.17M
NOI $70,031 @ 7.0% cap · market cap 4.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,708
Businesses Nearby
Explore this area
Business Placement
Demographics for 95472, CA
28,430
Population
12,595
Households
2.3
Avg Household Size
52
Median Age
50%
College-Educated
94%
High-School Grad
70.3 sq mi
ZIP Area
404
Density / Sq Mi
$109,775
Median Household Income
$50,097
Median Earnings
$1,918
Median Rent
$995,200
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 office building with four individual offices and ample storage.
Where is this office building located?
The property is located at 332 Petaluma Sebastopol, CA.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Commercial Office Zoning; 2 Story Office Building with **4 Individual Offices**; Separately Metered HVAC
