Sunnyvale Flex Office/Warehouse
For Sale
Contact for pricing
1260 Birchwood Dr, Sunnyvale, CA
Flex space featuring office and warehouse components in Sunnyvale, CA.
Property Size13,600 SF
Lot Size0.55 Acres
Price / SF$367.28
Days on Market753
Property Features for 1260 Birchwood Dr
General Information
Standard status
Active
Size
13,600 SF
Lot size
0.55 Acres
Property subtype
FLEX_R_AND_D
Listing Agency:
CBRE | San Jose
(408) 453-7441
Listed By:
Ben Knight · License #01296954
Source:
Moodyscre
Added: Jul 22, 2024
Changed: Aug 8
Last Checked: Aug 8 at 5:05AM
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 CBRE | San Jose
Investment Insights
Based on property information with market context.
This property, located in Sunnyvale, CA, is zoned for light industrial use and suitable for office, research and development, and warehouse operations. The building includes 3,600 square feet of second-floor office space. The property sits on a 0.55-acre lot, which is equivalent to 23,958 square feet. The warehouse area features a clear height ranging from approximately 14 to 20 feet. It is equipped with 500 Amps electrical service at 277/480V, which the buyer should independently verify. Access to the warehouse is facilitated by three grade-level doors. The total property size is 13,600 square feet.
Key Highlights
- Light industrial zoning offers versatile usage.
- Office / R&D / Warehouse property type.
- 3,600 SF 2nd floor office space.
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
$331,122
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
6.63%
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%
$6,622,440
$6.6M
Cap Rate 7%
$4,730,314
$4.7M
Cap Rate 9%
$3,679,133
$3.7M
Market Conditions
NOI Build-Up for 13,600 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
$435.7K $32.04/SF
− Vacancy
−$46.2K −$3.40/SF
EGI
$389.6K $28.64/SF
− OpEx
−$58.4K −$4.30/SF
NOI
$331.1K $24.35/SF
Area
Sunnyvale, CA
Vacancy
10.60%
Lease Rate
$32.04 /SF/Yr
Expense Ratio
15.00%
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%
$6,622,440
Cap Rate 7%
$4,730,314
Cap Rate 9%
$3,679,133
Alternative Uses
Best Use
Warehouse
$4.73M
$4.14M – $5.52M
NOI $331,122 @ 7.0% cap · market cap 6.63%
Second Best
Office B
$4.32M
$3.78M – $5.04M
NOI $302,348 @ 7.0% cap · market cap 6.05%
Theoretical Best
Office A
$5.91M
$5.17M – $6.89M
NOI $413,686 @ 7.0% cap · market cap 8.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
989
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
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Frequently Asked Questions
What type of property is this?
Flex space - Flex space featuring office and warehouse components in Sunnyvale, CA.
Where is this flex space located?
The property is located at 1260 Birchwood Dr Sunnyvale, CA.
What is the asking price?
The asking price for this property is $4,995,000.
What are key features of this property?
This property features: Light industrial zoning offers versatile usage.; Office / R&D / Warehouse property type.; 3,600 SF 2nd floor office space.
