Flex Office R&D
For Sale
Contact for pricing
1260 Birchwood Dr, Sunnyvale, CA 94089
Light industrial flex building features 3 grade level doors and clear height up to 20 feet.
Property Size13,600 SF
Lot Size0.55 Acres
Price / SF$367.28
Days on Market781
Property Features for 1260 Birchwood Dr
General Information
Standard status
Active
Size
13,600 SF
Lot size
0.55 Acres
Property subtype
FLEX_R_AND_D
Warehouse & Industrial
Clear Height
20 ft
Drive-In Doors
3
Heavy Power
Yes
Listing Agency:
CBRE | San Jose
(408) 453-7400
Listed By:
Ben Knight · License #01850353
(408) 453-7441
Source:
Moodyscre
Added: Jul 22, 2024
Changed: Aug 14
Last Checked: Sep 10 at 7:27AM
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
Investment Insights
Based on property information with market context.
This light industrial office/R&D/warehouse property includes a 3,600-square-foot second-floor office area and warehouse clear heights ranging from 14 to 20 feet. The facility is served by three grade level doors and includes electrical service of 500 amps at 277/480V, which the buyer is to verify.
The site totals 0.55 acres (23,958 square feet). The address is 1260 Birchwood Dr in Sunnyvale, CA 94089.
The building is positioned to support combined office and industrial use, with the office component located on the second floor and the primary loading access via grade level doors.
The site totals 0.55 acres (23,958 square feet). The address is 1260 Birchwood Dr in Sunnyvale, CA 94089.
The building is positioned to support combined office and industrial use, with the office component located on the second floor and the primary loading access via grade level doors.
Key Highlights
- Light industrial (zoning) office/R&D/warehouse flex building on 0.55 acres (23,958 SF land)
- 3,600 SF 2nd‑floor office space included
- Warehouse clear height of 14'–20'
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
$331,122
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
6.63%
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%
$6,622,440
$6.6M
Cap Rate 7%
$4,730,314
$4.7M
Cap Rate 9%
$3,679,133
$3.7M
Market Conditions
NOI Build-Up for 13,600 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
$435.7K $32.04/SF
− Vacancy
−$46.2K −$3.40/SF
EGI
$389.6K $28.64/SF
− OpEx
−$58.4K −$4.30/SF
NOI
$331.1K $24.35/SF
Area
Sunnyvale, CA
Vacancy
10.60%
Lease Rate
$32.04 /SF/Yr
Expense Ratio
15.00%
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%
$6,622,440
Cap Rate 7%
$4,730,314
Cap Rate 9%
$3,679,133
Alternative Uses
Best Use
Warehouse
$4.73M
$4.14M – $5.52M
NOI $331,122 @ 7.0% cap · market cap 6.63%
Second Best
Industrial
$3.90M
$3.41M – $4.54M
NOI $272,689 @ 7.0% cap · market cap 5.46%
Theoretical Best
Office A
$5.91M
$5.17M – $6.89M
NOI $413,686 @ 7.0% cap · market cap 8.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
20 ft
Clear height
3
Drive-in doors
Yes
Heavy power
Location Intelligence
Trade Area within ½ mile
933
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 94089, CA
23,255
Population
9,449
Households
2.5
Avg Household Size
37
Median Age
57%
College-Educated
92%
High-School Grad
6.1 sq mi
ZIP Area
3,812
Density / Sq Mi
$153,725
Median Household Income
$82,653
Median Earnings
$3,351
Median Rent
$392,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Cosmopolitan Catering — 1288 Reamwood Ave, Sunnyvale, CA 94089
Frequently Asked Questions
What type of property is this?
Flex space - Light industrial flex building features 3 grade level doors and clear height up to 20 feet.
Where is this flex space located?
The property is located at 1260 Birchwood Dr Sunnyvale, CA.
What is the asking price?
The asking price for this property is $4,995,000.
What are key features of this property?
This property features: Light industrial (zoning) office/R&D/warehouse flex building on 0.55 acres (23,958 SF land); 3,600 SF 2nd‑floor office space included; Warehouse clear height of 14'–20'
