Petaluma Commercial Building for
For Sale
$5,300,000
719 Southpoint Boulevard, Petaluma, CA 94954
Commercial building suitable for owner/user or investor with PUD zoning.
Property Size23,000 SF
Price / SF$230.43
Days on Market281
Property Features for 719 Southpoint Boulevard
General Information
Standard status
Active
Size
23,000 SF
Class
C
Property subtype
Office
Building Details
Building Size
23,000 SF
Listing Agency:
Ground Matrix
(707) 570-7802
Listed By:
Jerry Adamson · License #CalDRE #01935945
Source:
Groundmatrix
Added: Nov 21, 2025
Changed: Aug 14
Last Checked: Aug 29 at 7:07AM
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 Ground Matrix
Investment Insights
Based on property information with market context.
719 Southpoint Boulevard presents a unique opportunity to purchase a commercial building, suitable for either an owner/user or an investor, and is prime for repositioning. The PUD zoning provides flexibility, and the structure can be modified to accommodate a wide range of business activities. Southpoint Boulevard is located on the East Side of Petaluma, off of N. McDowell Boulevard, a main thoroughfare. The location serves a wide variety of commercial businesses, including professional offices, warehouses, and public service offices such as the DMV. The property is conveniently located near Deer Creek Village and Plaza North Shopping Centers. The building has approximately 120 parking spaces and offers convenient access to HWY 101. Full or partial building occupancy options are available. The property size is approximately 23,000 square feet.
Key Highlights
- Prime commercial building ideal for owner/user or investor with re‑positioning potential.
- PUD zoning offers flexibility for various business activities.
- Convenient access to HWY 101.
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
$324,742
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
6.13%
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%
$6,494,840
$6.5M
Cap Rate 7%
$4,639,171
$4.6M
Cap Rate 9%
$3,608,244
$3.6M
Market Conditions
NOI Build-Up for 23,000 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
$510.6K $22.20/SF
− Vacancy
−$77.6K −$3.37/SF
EGI
$433.0K $18.83/SF
− OpEx
−$108.2K −$4.71/SF
NOI
$324.7K $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%
$6,494,840
Cap Rate 7%
$4,639,171
Cap Rate 9%
$3,608,244
Alternative Uses
Best Use
Office B
$4.64M
$4.06M – $5.41M
NOI $324,742 @ 7.0% cap · market cap 6.13%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$6.23M
$5.45M – $7.27M
NOI $436,273 @ 7.0% cap · market cap 8.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
603
Businesses Nearby
Explore this area
Business Placement
Demographics for 94954, CA
38,301
Population
15,147
Households
2.5
Avg Household Size
43
Median Age
37%
College-Educated
92%
High-School Grad
62.2 sq mi
ZIP Area
616
Density / Sq Mi
$107,564
Median Household Income
$58,362
Median Earnings
$2,405
Median Rent
$790,100
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 - Commercial building suitable for owner/user or investor with PUD zoning.
Where is this office building located?
The property is located at 719 Southpoint Boulevard Petaluma, CA.
What is the asking price?
The asking price for this property is $5,300,000.
What are key features of this property?
This property features: Prime commercial building ideal for owner/user or investor with re‑positioning potential.; PUD zoning offers flexibility for various business activities.; Convenient access to HWY 101.
