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    Downtown San Jose Development Site Title is generated by Realmo AI

    394 South Second Street, San Jose, CA 95113

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    Development site in Downtown San Jose near San Jose State.

    Type:Retail
    Property size:
    13,304 SF
    Lot size:
    0.49 Acres
    Added:
    Mar 25, 2026
    Days on Market:
    48
    Last Refresh:
    Mar 18 at 9:45 am

    Property Features for 394 South Second Street

    General Information

    Standard status
    Active
    Size
    13,304 SF
    Lot size
    0.49 Acres
    Property subtype
    Retail

    We can help!

    Listing Contact
    Nick Whitstone
    Nick Whitstone

    Listing agent Nick Whitstone License #01196787

    Listing office CBRE - San Jose

    Listing date Mar 25, 2026

    Source Cbre

    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

    HighLights

    • Prime Downtown San Jose development site totaling 21,428 square feet (.49 acres).
    • Located two blocks from San Jose State University.
    • Surrounded by multiple office and mixed‑use residential projects under construction or approved.
    • Existing improvements include 20,280 square feet of retail and office space.
    • Situated in the economic, cultural, and political center of Silicon Valley.
    • Benefiting from major urban transformation, including 3,700 new housing units in planning or under construction, and the Google Village project.

    Overview

    Located in the core of Downtown San Jose, the property consists of a development site at 394 S. 2nd Street & 384 S. 2nd Street. The site totals 21,428 square feet (.49 acres) of land and includes 20,280 square feet of existing retail and office improvements. The property is positioned two blocks from San Jose State University and is surrounded by multiple office and mixed-use residential projects that are under construction or approved by the city. The Downtown core of San Jose is experiencing a major urban transformation. There are 3,700 new housing units in planning or under construction along with the Google Village project’s proposed 3,000-5,000 housing units. The surge in economic and population growth will be supported by a transportation infrastructure expansion of the Bay Area Rapid Transit (BART) stations into Downtown San Jose, which will ultimately connect to the local VTA and Caltrain stations.
    Property Profile Insight Report Location Intelligence

    Current Use by Public Records

    Pest Animal Removal ... Garden Center

    Suggested Use

    Real Estate Agency Restaurant Spa & Massage Center Dental Office Law Firm Hair Salon Nail Salon Building Supply Gym & Fitness Center Pharmacy

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    San Jose
    County
    Santa Clara
    State
    California
    Longitude
    -121.8845525
    Latitude
    37.3309543

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    FAQs

    What type of property is this?
    Retail property - Development site in Downtown San Jose near San Jose State.
    Where is this retail property located?
    The property is located at 394 South Second Street San Jose, CA.
    What are key features of this property?
    This property features: Prime Downtown San Jose development site totaling 21,428 square feet (.49 acres).; Located two blocks from San Jose State University.; Surrounded by multiple office and mixed‑use residential projects under construction or approved.
    (408) 453-7438
    We can help!
    Listing Contact
    Nick Whitstone
    Nick Whitstone
    Real Estate License ID: 01196787
    Learn More
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
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