Pasadena Office Building For
For Sale
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1245 E Walnut St, Pasadena, CA
6,536 SF office building with owner-user potential.
Property Size6,536 SF
Lot Size0.39 Acres
Price / SF$382.50
Days on Market314
Property Features for 1245 E Walnut St
General Information
Standard status
Active
Size
6,536 SF
Lot size
0.39 Acres
Property subtype
OFFICE
Listing Agency:
Growth Investment Group California
(626) 594-4900
Listed By:
Han Widjaja Chen · License #00996775
(626) 594-4900
Source:
Moodyscre
Added: Oct 2, 2025
Changed: Aug 8
Last Checked: May 19 at 10:58PM
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 Growth Investment Group California
Investment Insights
Based on property information with market context.
The property features a 6,536 square-foot building situated on a ±16,881 square-foot lot. The building is divided into 16 individual suites. Eight of these suites, totaling approximately ±2,860 square feet or ±44% of the building, are currently vacant and will be delivered as such, making the building suitable for an owner-user. The remaining eight tenants are on month-to-month leases with rents significantly below market value, presenting an opportunity for an owner-user or developer to increase rents and boost income.
Key Highlights
- 8 Vacant Suites (±2,860 SF / ±44%) - Perfect for owner‑user looking to occupy a portion of the building.
- Significant rental upside with 8 tenants on month‑to‑month leases below market value.
- Total building size of 6,536 SF.
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
$140,001
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
5.60%
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%
$2,800,020
$2.8M
Cap Rate 7%
$2,000,014
$2.0M
Cap Rate 9%
$1,555,567
$1.6M
Market Conditions
NOI Build-Up for 6,536 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
$219.6K $33.60/SF
− Vacancy
−$32.9K −$5.04/SF
EGI
$186.7K $28.56/SF
− OpEx
−$46.7K −$7.14/SF
NOI
$140.0K $21.42/SF
Area
Pasadena, CA
Vacancy
15.00%
Lease Rate
$33.60 /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%
$2,800,020
Cap Rate 7%
$2,000,014
Cap Rate 9%
$1,555,567
Alternative Uses
Best Use
Office B
$2.00M
$1.75M – $2.33M
NOI $140,001 @ 7.0% cap · market cap 5.60%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$147.13M
$128.73M – $171.65M
NOI $10,298,797 @ 7.0% cap · market cap 411.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,959
Businesses Nearby
Explore this area
Business Placement
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 units - 6,536 SF office building with owner-user potential.
Where is this office units located?
The property is located at 1245 E Walnut St Pasadena, CA.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 8 Vacant Suites (±2,860 SF / ±44%) - **Perfect for owner‑user looking to occupy a portion of the building.**; Significant rental upside with 8 tenants on month‑to‑month leases below market value.; Total building size of 6,536 SF.
