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2200-2285 Palou Ave, San Francisco, CA
Two buildings totaling 22,003 SF on a 27,442 SF parcel.
Property Size22,003 SF
Lot Size9.62 Acres
Price / SF$440.85
Days on Market530
Property Features for 2200-2285 Palou Ave
General Information
Standard status
Active
Size
22,003 SF
Lot size
9.62 Acres
Property subtype
INDUSTRIAL
Lease Type
Industrial Gross
Properties For Sale
at 2200-2285 Palou Ave Contact us- Floor
- 1
- Size
- 18,003 SF
- Type
- INDUSTRIAL
- Lease Type
- INDUSTRIAL_GROSS
- Availability
- AVAILABLE, 60 Days
- Sublease
- No
2136 Palou Ave
- 800 AMPS / 3 Phase Power / 480 Volt
- Concrete Building constructed in 1976
- Includes...
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Listing Agency:
HC&M Commercial Properties
(415) 740-5766
Listed By:
RC Hildebrand
(415) 740-5766
Source:
Moodyscre
Added: Mar 20, 2025
Changed: Aug 9
Last Checked: Aug 31 at 2:27AM
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 HC&M Commercial Properties
Investment Insights
Based on property information with market context.
Two buildings are available on a single parcel measuring 27,442 square feet. The total combined building area is 22,003 square feet. The main building, constructed in 1976, is a concrete structure with 18,003 square feet. It features a fenced and paved parking/loading dock area of approximately 3,000 square feet. The smaller metal building, also constructed in 1976, provides 4,000 square feet of space. The property is fully sprinklered. The main building has 800 Amps of 3-Phase, 480 Volt power, while the smaller building has 200 Amps of 3-Phase, 240 Volt power. There are three drive-in doors and one dock-high door. Existing ventilation duct shafts in the roof accommodate manufacturing or kitchen uses. An increased 3” gas line is present. A new roof was installed in 2020 with a transferable warranty. The HVAC system has been updated and repaired in the office areas, and heating units are in place in the warehouse/production area. Exhaust fans have been updated and repaired in the warehouse/production area. The office and lobby areas have been fully remodeled with new conference rooms, lighting, carpet, and flooring. New exterior and interior paint has been applied, and the bathrooms have been updated.
Key Highlights
- Two buildings on one parcel totaling 22,003 SqFt.
- New roof installed in 2020 with transferable warranty.
- Fully remodeled office and lobby areas.**
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
$454,472
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
4.69%
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%
$9,089,440
$9.1M
Cap Rate 7%
$6,492,457
$6.5M
Cap Rate 9%
$5,049,689
$5.0M
Market Conditions
NOI Build-Up for 22,003 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
$594.1K $27.00/SF
− Vacancy
−$59.4K −$2.70/SF
EGI
$534.7K $24.30/SF
− OpEx
−$80.2K −$3.65/SF
NOI
$454.5K $20.66/SF
Area
San Francisco, CA
Vacancy
10.00%
Lease Rate
$27.00 /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%
$9,089,440
Cap Rate 7%
$6,492,457
Cap Rate 9%
$5,049,689
Alternative Uses
Best Use
Warehouse
$6.49M
$5.68M – $7.57M
NOI $454,472 @ 7.0% cap · market cap 4.69%
Second Best
Industrial
$5.35M
$4.68M – $6.24M
NOI $374,271 @ 7.0% cap · market cap 3.86%
Theoretical Best
Specialty Retail
$107.48M
$94.04M – $125.39M
NOI $7,523,293 @ 7.0% cap · market cap 77.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,691
Businesses Nearby
Explore this area
Business Placement
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Two buildings totaling 22,003 SF on a 27,442 SF parcel.
Where is this manufacturing property located?
The property is located at 2200-2285 Palou Ave San Francisco, CA.
What is the asking price?
The asking price for this property is $9,700,000.
What are key features of this property?
This property features: Two buildings on one parcel totaling 22,003 SqFt.; New roof installed in 2020 with transferable warranty.; Fully remodeled office and lobby areas.**
