Renovated Office
For Sale
Contact for pricing
5120 Shoreham Place, San Diego, CA 92122
Renovated, 100% leased office building with a diversified tenant mix and zoning permitting medical use.
Property Size39,081 SF
Price / SF$267.39
Days on Market609
Property Features for 5120 Shoreham Place
General Information
Standard status
Active
Size
39,081 SF
Property subtype
OFFICE
Occupancy
100%
Building Details
Tenancy
Multi
Listing Agency:
Cushman & Wakefield | San Diego
(858) 452-6500
Listed By:
Louay Alsadek · License #01078492
(858) 558-5635
Source:
Moodyscre
Added: Jan 17, 2025
Changed: Sep 11
Last Checked: Sep 18 at 5:53AM
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 Cushman & Wakefield | San Diego
Investment Insights
Based on property information with market context.
This renovated office building is impeccably owned, maintained, and managed. The property is currently 100% leased and features a highly diversified tenant mix, with 60% leased to GSA tenants, according to the provided remarks.
The property is located at 5120 Shoreham Place in San Diego, California. The zoning allows for medical use, which may support a range of healthcare-adjacent operating concepts.
The information provided also highlights intrinsic value below replacement cost and a WALT of 2.9 years.
The property is located at 5120 Shoreham Place in San Diego, California. The zoning allows for medical use, which may support a range of healthcare-adjacent operating concepts.
The information provided also highlights intrinsic value below replacement cost and a WALT of 2.9 years.
Key Highlights
- Renovated office building with a diversified tenant mix
- 100% leased with a WALT of 2.9 years
- Tenant mix includes 60% leased to GSA tenants
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
$754,459
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
7.22%
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%
$15,089,180
$15.1M
Cap Rate 7%
$10,777,986
$10.8M
Cap Rate 9%
$8,382,878
$8.4M
Market Conditions
NOI Build-Up for 39,081 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
$1.17M $30.00/SF
− Vacancy
−$166.5K −$4.26/SF
EGI
$1.01M $25.74/SF
− OpEx
−$251.5K −$6.44/SF
NOI
$754.5K $19.31/SF
Area
San Diego, CA
Vacancy
14.20%
Lease Rate
$30.00 /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%
$15,089,180
Cap Rate 7%
$10,777,986
Cap Rate 9%
$8,382,878
Alternative Uses
Best Use
Office B
$10.78M
$9.43M – $12.57M
NOI $754,459 @ 7.0% cap · market cap 7.22%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$15.44M
$13.51M – $18.01M
NOI $1,080,511 @ 7.0% cap · market cap 10.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
521
Businesses Nearby
Explore this area
Business Placement
Demographics for 92122, CA
45,646
Population
21,349
Households
2.1
Avg Household Size
32
Median Age
74%
College-Educated
96%
High-School Grad
5.4 sq mi
ZIP Area
8,453
Density / Sq Mi
$98,825
Median Household Income
$60,483
Median Earnings
$2,601
Median Rent
$1,005,000
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 Diego, CA
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Frequently Asked Questions
What type of property is this?
Office building - Renovated, 100% leased office building with a diversified tenant mix and zoning permitting medical use.
Where is this office building located?
The property is located at 5120 Shoreham Place San Diego, CA.
What is the asking price?
The asking price for this property is $10,450,000.
What are key features of this property?
This property features: Renovated office building with a diversified tenant mix; 100% leased with a WALT of 2.9 years; Tenant mix includes 60% leased to GSA tenants
