Downtown Salinas Office
For Sale
$995,000
109 E Alisal St, Salinas, CA 93901
Two-unit office building in downtown Salinas with investment potential.
Property Size3,770 SF
Lot Size0.21 Acres
Price / SF$263.93
Days on Market134
Property Features for 109 E Alisal St
General Information
Standard status
Active
Size
3,770 SF
Lot size
0.21 Acres
Property subtype
Commercial
Building Details
Year Built
1947
Stories
1
Listing Agency:
Agency One Real Estate
(831) 262-1955
Listed By:
Sean Griffin · License #01466508
(831) 262-1955
Source:
Elliman
Added: Mar 31
Changed: Aug 8
Last Checked: Aug 8 at 4:59AM
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 Agency One Real Estate
Investment Insights
Based on property information with market context.
This 3770 square foot office building, with an additional approximately 800 square foot basement, is located in downtown South Salinas. The building is divided into two units. One unit, approximately 1500 square feet, is currently leased to a tenant who pays $1950 per month. The other unit, approximately 2270 square feet with an 800 square foot basement, will be delivered vacant, presenting an owner-user opportunity. The larger unit includes multiple private office spaces, a conference room, a kitchen area, a private bathroom, a private outdoor courtyard, and storage areas. The smaller unit features hardwood flooring, a kitchen, a private bathroom, and a storage room. Updates in recent years include a new roof, new windows, new flooring, and new paint. The property has 12 on-site parking spaces, with additional street parking nearby. Located near the heart of downtown Salinas, the building is within walking distance of shops and restaurants. The property experiences traffic of over 1000 cars per day. This property is suitable for an owner/user or as a cash-flowing investment by renting out both units.
Key Highlights
- Owner‑user opportunity with 2270 sqft unit (plus 800 sqft basement) delivered vacant, featuring multiple private offices, conference room, kitchen, private bathroom, and courtyard.
- Income‑producing potential with a 1500 sqft unit currently rented for $1950 per month.
- Recent updates including new roof, windows, flooring, and paint.
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
$58,224
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
5.85%
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%
$1,164,480
$1.2M
Cap Rate 7%
$831,771
$831.8K
Cap Rate 9%
$646,933
$646.9K
Market Conditions
NOI Build-Up for 3,770 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
$99.5K $26.40/SF
− Vacancy
−$21.9K −$5.81/SF
EGI
$77.6K $20.59/SF
− OpEx
−$19.4K −$5.15/SF
NOI
$58.2K $15.44/SF
Area
Salinas, CA
Vacancy
22.00%
Lease Rate
$26.40 /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%
$1,164,480
Cap Rate 7%
$831,771
Cap Rate 9%
$646,933
Alternative Uses
Best Use
Office B
$831.8K
$727.8K – $970.4K
NOI $58,224 @ 7.0% cap · market cap 5.85%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.19M
$1.04M – $1.38M
NOI $83,097 @ 7.0% cap · market cap 8.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,982
Businesses Nearby
Explore this area
Business Placement
Demographics for 93901, CA
29,700
Population
11,328
Households
2.6
Avg Household Size
37
Median Age
29%
College-Educated
81%
High-School Grad
9.6 sq mi
ZIP Area
3,094
Density / Sq Mi
$91,639
Median Household Income
$47,620
Median Earnings
$1,792
Median Rent
$721,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two-unit office building in downtown Salinas with investment potential.
Where is this office building located?
The property is located at 109 E Alisal St Salinas, CA.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: Owner‑user opportunity with **2270 sqft unit (plus 800 sqft basement) delivered vacant**, featuring multiple private offices, conference room, kitchen, private bathroom, and courtyard.; Income‑producing potential with a 1500 sqft unit currently rented for $1950 per month.; Recent updates including new roof, windows, flooring, and paint.
