Canoga Park Office
For Sale
$9,700,000
7045 Farralone Ave., Canoga Park, CA 91303
Office building for sale in Canoga Park, California.
Property Size26,367 SF
Days on Market156
Property Features for 7045 Farralone Ave.
General Information
Standard status
Active
Size
26,367 SF
Property subtype
Office
Building Details
Building Size
26,367 SF
Year Built
1960
Stories
1
Listing Agency:
DAUM Commercial Real Estate Services City of Industrial
Listed By:
Dennis Marciniak · License #CA 00888799
(818) 449-1627
Source:
Daumcommercial
Added: Apr 3
Changed: Sep 3
Last Checked: Sep 5 at 3:38AM
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 DAUM Commercial Real Estate Services City of Industrial
Investment Insights
Based on property information with market context.
The property is an office building located in Canoga Park, California. The list price is $9,000,000.
Key Highlights
- Office building for sale.
- Located in Canoga Park, California.
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
$625,853
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
6.45%
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%
$12,517,060
$12.5M
Cap Rate 7%
$8,940,757
$8.9M
Cap Rate 9%
$6,953,922
$7.0M
Market Conditions
NOI Build-Up for 26,367 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
$1.03M $38.88/SF
− Vacancy
−$190.7K −$7.23/SF
EGI
$834.5K $31.65/SF
− OpEx
−$208.6K −$7.91/SF
NOI
$625.9K $23.74/SF
Area
Los Angeles, CA
Vacancy
18.60%
Lease Rate
$38.88 /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%
$12,517,060
Cap Rate 7%
$8,940,757
Cap Rate 9%
$6,953,922
Alternative Uses
Best Use
Office B
$8.94M
$7.82M – $10.43M
NOI $625,853 @ 7.0% cap · market cap 6.45%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$534.18M
$467.41M – $623.21M
NOI $37,392,571 @ 7.0% cap · market cap 385.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,509
Businesses Nearby
Explore this area
Business Placement
Demographics for 91303, CA
28,457
Population
11,073
Households
2.6
Avg Household Size
34
Median Age
25%
College-Educated
77%
High-School Grad
2.1 sq mi
ZIP Area
13,551
Density / Sq Mi
$76,051
Median Household Income
$35,649
Median Earnings
$1,983
Median Rent
$645,300
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 - Office building for sale in Canoga Park, California.
Where is this office building located?
The property is located at 7045 Farralone Ave. Canoga Park, CA.
What is the asking price?
The asking price for this property is $9,700,000.
What are key features of this property?
This property features: Office building for sale.; Located in Canoga Park, California.
