San Jose Industrial Property
For Sale
$2,700,000
1180 N 5th Street, San Jose, CA 95112
Industrial property with options, potential machine shop, warehouse conversion.
Property Size7,390 SF
Price / SF$365.36
Days on Market330
Property Features for 1180 N 5th Street
General Information
Standard status
Active
Size
7,390 SF
Property subtype
Commercial/Industrial
Building Details
Year Built
1957
Listing Agency:
Quintessential Real Estate Firm, Inc.
Listed By:
Veronica Chaves · License #01485129
(408) 568-5967
Source:
Exitrealty
Added: Oct 14, 2025
Changed: Sep 8
Last Checked: Sep 8 at 7:38AM
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 Quintessential Real Estate Firm, Inc.
Investment Insights
Based on property information with market context.
This industrial property in San Jose presents a significant opportunity for ownership. The property offers multiple options for utilization. A fully operational, turnkey machine shop, in business for over 70 years, is currently on site, and there is an option to purchase the business as well. If the business is not part of the sale, the machining equipment will be removed. The buildings have the capability to be converted back into warehouse-type space. The property features a new silicon rubber roof and fresh exterior paint. The building at 1170 N. 5th Street is also for sale by the same owner, presenting the option to purchase both properties. The building at 1180 N 5th St has 480V-1200A 3 phase power, and 200 amp 3 phase 208/120V power. The building at 1170 has 480 V; 3 phase-4W 277/480V, 600 V AC; 240V 800 A 3 phase power.
Key Highlights
- Fully operational, turnkey machine shop in business for over 70 years (option to purchase business).
- Potential to convert buildings back into warehouse space.
- New Silicon Rubber roof and fresh exterior paint.
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
$123,347
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
4.57%
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%
$2,466,940
$2.5M
Cap Rate 7%
$1,762,100
$1.8M
Cap Rate 9%
$1,370,522
$1.4M
Market Conditions
NOI Build-Up for 7,390 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
$190.7K $25.80/SF
− Vacancy
−$14.5K −$1.96/SF
EGI
$176.2K $23.84/SF
− OpEx
−$52.9K −$7.15/SF
NOI
$123.3K $16.69/SF
Area
San Jose, CA
Vacancy
7.58%
Lease Rate
$25.80 /SF/Yr
Expense Ratio
30.00%
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%
$2,466,940
Cap Rate 7%
$1,762,100
Cap Rate 9%
$1,370,522
Alternative Uses
Best Use
Industrial
$1.76M
$1.54M – $2.06M
NOI $123,347 @ 7.0% cap · market cap 4.57%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.46M
$3.91M – $5.21M
NOI $312,413 @ 7.0% cap · market cap 11.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,627
Businesses Nearby
Explore this area
Business Placement
Demographics for 95112, CA
60,754
Population
22,969
Households
2.6
Avg Household Size
33
Median Age
39%
College-Educated
82%
High-School Grad
7.3 sq mi
ZIP Area
8,322
Density / Sq Mi
$89,649
Median Household Income
$45,690
Median Earnings
$2,095
Median Rent
$956,300
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Manufacturing property - Industrial property with options, potential machine shop, warehouse conversion.
Where is this manufacturing property located?
The property is located at 1180 N 5th Street San Jose, CA.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: Fully operational, turnkey machine shop in business for over 70 years (option to purchase business).; Potential to convert buildings back into warehouse space.; New Silicon Rubber roof and fresh exterior paint.
