North Merced Office Space
For Sale
$1,175,000
436 E Yosemite Avenue #B C, Merced, CA 95340
Office suites for sale near hospital and restaurants.
Property Size4,100 SF
Lot Size0.10 Acres
Price / SF$286.59
Days on Market1073
Property Features for 436 E Yosemite Avenue #B C
General Information
Standard status
Active
Size
4,100 SF
Lot size
0.10 Acres
Property subtype
Commercial
Amenities
Central Heating
Level with Street
Listing Agency:
SVN EXECUTIVE COMMERCIAL ADVISORS
(209) 385-8500
Listed By:
RANDY HAYER · License #01251542
Source:
Corcoran
Added: Sep 22, 2023
Changed: Aug 26
Last Checked: Aug 25 at 7:35AM
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 SVN EXECUTIVE COMMERCIAL ADVISORS
Investment Insights
Based on property information with market context.
This property features office space in North Merced, situated on Yosemite Avenue. The location benefits from high traffic volume and proximity to the hospital and various restaurants. The sale includes two suites. On-site parking is available. The property is suitable for use as a medical office.
Key Highlights
- Highly desirable location in North Merced.
- Two suites included in the sale.
- High traffic location on Yosemite Ave.
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
$63,320
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
5.39%
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%
$1,266,400
$1.3M
Cap Rate 7%
$904,571
$904.6K
Cap Rate 9%
$703,556
$703.6K
Market Conditions
NOI Build-Up for 4,100 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
$123.0K $30.00/SF
− Vacancy
−$17.5K −$4.26/SF
EGI
$105.5K $25.74/SF
− OpEx
−$42.2K −$10.30/SF
NOI
$63.3K $15.44/SF
Area
Merced County, CA
Vacancy
14.20%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
40.00%
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%
$1,266,400
Cap Rate 7%
$904,571
Cap Rate 9%
$703,556
Alternative Uses
Best Use
Healthcare Medical
$904.6K
$791.5K – $1.06M
NOI $63,320 @ 7.0% cap · market cap 5.39%
Second Best
Office B
$110.2K
$96.4K – $128.6K
NOI $7,714 @ 7.0% cap · market cap 0.66%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
687
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 95340, CA
38,606
Population
13,553
Households
2.8
Avg Household Size
33
Median Age
26%
College-Educated
86%
High-School Grad
52.0 sq mi
ZIP Area
742
Density / Sq Mi
$65,141
Median Household Income
$35,165
Median Earnings
$1,204
Median Rent
$383,200
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Office suites for sale near hospital and restaurants.
Where is this medical office space located?
The property is located at 436 E Yosemite Avenue #B C Merced, CA.
What is the asking price?
The asking price for this property is $1,175,000.
What are key features of this property?
This property features: Highly desirable location in North Merced.; Two suites included in the sale.; High traffic location on Yosemite Ave.
