Freestanding Office Building Rose
For Sale
$1,199,000
1217 Park Avenue, San Jose, CA 95126
Updated 1,534 SF office building in Rose Garden neighborhood.
Property Size1,534 SF
Price / SF$781.62
Days on Market122
Property Features for 1217 Park Avenue
General Information
Standard status
Active
Size
1,534 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$17,159
Building Details
Year Built
1983
Listing Agency:
Coldwell Banker Realty
(408) 621-7473
Listed By:
Chris Shaheen · License #01421630
(408) 621-7473
Source:
Exitrealty
Added: Apr 24
Changed: Aug 23
Last Checked: Aug 23 at 6:20AM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
This rarely available freestanding office building, totaling 1,534 square feet, is situated in the Rose Garden neighborhood. The two-story building features a foyer, a conference room, and two restrooms. A two-car garage is accessible on the first floor. The second floor includes two offices and a large open area. The interior space has been updated with new paint and flooring, along with fully renovated restrooms. The parking lot at the rear of the property provides five open stalls, in addition to the two garage spaces. Zoned Commercial Office (CO), the property is suitable for various businesses, such as a CPA, law firm, architect, or insurance office. The location is approximately one mile from Diridon Station and near The Alameda, Downtown San Jose, Valley Fair, and Santana Row. The bike score is 84, indicating it is very bikeable. The walk score is 73, indicating it is very walkable. The transit score is 48, indicating some transit options are available.
Key Highlights
- Updated interior with new paint, flooring, and renovated restrooms.
- Freestanding office building in the affluent Rose Garden neighborhood.
- Convenient location: 1 mile from Diridon Station and close to The Alameda, Downtown San Jose, Valley Fair, and Santana Row.
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
$53,965
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
4.50%
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%
$1,079,300
$1.1M
Cap Rate 7%
$770,929
$770.9K
Cap Rate 9%
$599,611
$599.6K
Market Conditions
NOI Build-Up for 1,534 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
$86.0K $56.04/SF
− Vacancy
−$14.0K −$9.13/SF
EGI
$72.0K $46.91/SF
− OpEx
−$18.0K −$11.73/SF
NOI
$54.0K $35.18/SF
Area
San Jose, CA
Vacancy
16.30%
Lease Rate
$56.04 /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%
$1,079,300
Cap Rate 7%
$770,929
Cap Rate 9%
$599,611
Alternative Uses
Best Use
Office B
$770.9K
$674.6K – $899.4K
NOI $53,965 @ 7.0% cap · market cap 4.50%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$926.4K
$810.6K – $1.08M
NOI $64,850 @ 7.0% cap · market cap 5.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,115
Businesses Nearby
Explore this area
Business Placement
Demographics for 95126, CA
37,372
Population
16,936
Households
2.2
Avg Household Size
36
Median Age
55%
College-Educated
89%
High-School Grad
3.3 sq mi
ZIP Area
11,325
Density / Sq Mi
$127,297
Median Household Income
$72,722
Median Earnings
$2,544
Median Rent
$1,195,700
Median Home Value
Market
Vacancy Rate% for Office in San Jose, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Updated 1,534 SF office building in Rose Garden neighborhood.
Where is this office building located?
The property is located at 1217 Park Avenue San Jose, CA.
What is the asking price?
The asking price for this property is $1,199,000.
What are key features of this property?
This property features: Updated interior with new paint, flooring, and renovated restrooms.; Freestanding office building in the affluent Rose Garden neighborhood.; Convenient location: 1 mile from Diridon Station and close to The Alameda, Downtown San Jose, Valley Fair, and Santana Row.
