Class A Office/R&D
For Sale
Contact for pricing
5799 Fontanoso Way, San Jose, CA 95138
Move-in condition Class A office/R&D HQ with grade-level and dock-high loading plus 100% HVAC.
Property Size93,650 SF
Price / SF$299
Days on Market819
Property Features for 5799 Fontanoso Way
General Information
Standard status
Active
Size
93,650 SF
Property subtype
FLEX_R_AND_D
Listing Agency:
CBRE | San Jose
(408) 453-7400
Listed By:
Chip Sutherland · License #01014633
(408) 453-7410
Source:
Moodyscre
Added: Jun 14, 2024
Changed: Aug 13
Last Checked: Sep 9 at 11:40AM
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 is a two-story, Class A office/R&D headquarters building with 93,650 square feet and move-in condition interior improvements. The facility is supported by 4,000 amps at 277/480V with 3-phase power and includes 100% HVAC with approximately 240 tons of capacity. Operational features include both grade-level and dock-high loading, with 10-foot ceiling heights throughout. An onsite cafe is also included, along with a parking ratio of 3.4 spaces per 1,000 square feet.
The property is located at 5799 Fontanoso Way in San Jose, California, with convenient access to Highway 101 and an amenity-rich surrounding area.
The property is located at 5799 Fontanoso Way in San Jose, California, with convenient access to Highway 101 and an amenity-rich surrounding area.
Key Highlights
- Two‑story Class A office/R&D HQ building totaling 93,650 SF
- Move‑in condition with high‑end improvements
- 100% HVAC with 240 tons capacity
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
$1,743,617
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
6.23%
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%
$34,872,340
$34.9M
Cap Rate 7%
$24,908,814
$24.9M
Cap Rate 9%
$19,373,522
$19.4M
Market Conditions
NOI Build-Up for 93,650 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
$3.00M $32.04/SF
− Vacancy
−$318.1K −$3.40/SF
EGI
$2.68M $28.64/SF
− OpEx
−$938.9K −$10.03/SF
NOI
$1.74M $18.62/SF
Area
San Jose, CA
Vacancy
10.60%
Lease Rate
$32.04 /SF/Yr
Expense Ratio
35.00%
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%
$34,872,340
Cap Rate 7%
$24,908,814
Cap Rate 9%
$19,373,522
Alternative Uses
Best Use
Office B
$47.06M
$41.18M – $54.91M
NOI $3,294,524 @ 7.0% cap · market cap 11.77%
Second Best
Flex RnD
$24.91M
$21.80M – $29.06M
NOI $1,743,617 @ 7.0% cap · market cap 6.23%
Theoretical Best
Office A
$56.56M
$49.49M – $65.98M
NOI $3,959,066 @ 7.0% cap · market cap 14.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
525
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95138, CA
19,530
Population
5,733
Households
3.4
Avg Household Size
41
Median Age
53%
College-Educated
90%
High-School Grad
26.0 sq mi
ZIP Area
751
Density / Sq Mi
$194,300
Median Household Income
$75,421
Median Earnings
$2,728
Median Rent
$1,355,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in San Jose, CA
Questions? Ask Rey
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Similar Off Market Nearby
- IDT Café — 6024 Silver Creek Valley Rd, San Jose, CA 95138
Frequently Asked Questions
What type of property is this?
Flex space - Move-in condition Class A office/R&D HQ with grade-level and dock-high loading plus 100% HVAC.
Where is this flex space located?
The property is located at 5799 Fontanoso Way San Jose, CA.
What is the asking price?
The asking price for this property is $28,001,350.
What are key features of this property?
This property features: Two‑story Class A office/R&D HQ building totaling 93,650 SF; Move‑in condition with high‑end improvements; 100% HVAC with 240 tons capacity
