Multi-Tenant Strip
For Sale
$2,600,000
1854 W San Carlos St, San Jose, CA 95128
Dedicated parking serves a multi-tenant retail configuration in San Jose.
Property Size4,800 SF
Price / SF$541.67
Days on Market47
Property Features for 1854 W San Carlos St
General Information
Standard status
Active
Size
4,800 SF
Property subtype
Shopping Strip
Amenities
Value-Add Multi-Tenant Retail Asset: Immediate income diversification with upside through leasing and rent optimization.
Rare Dedicated Off-Street Parking Lot: Massive competitive advantage for tenants in a dense, heavily trafficked urban corridor.
West San Carlos Urban Village Plan Location: Positioned directly inside a city-backed zoning plan for high-density, mixed-use growth.
Building Details
Building Size
4,800 SF
Year Built
1950
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Palo Alto
Listed By:
Eric Carrillo · License #License(s): CA: 02111809
(650) 391-1742
Source:
Marcusmillichap
Added: Aug 2
Changed: Sep 4
Last Checked: Sep 16 at 12:25PM
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 Marcus & Millichap - Palo Alto
Investment Insights
Based on property information with market context.
Located at 1854 W San Carlos St in San Jose, this 4,800-square-foot strip mall is configured as a multi-tenant retail building. The property includes a dedicated parking lot and was constructed in 1950, providing an established commercial asset with an existing retail layout.
The offering is structured on a fee simple basis and is being conveyed free and clear of existing financing. The property is offered in its present condition, with the sale proceeding on an “as-is, where-is” basis.
The offering is structured on a fee simple basis and is being conveyed free and clear of existing financing. The property is offered in its present condition, with the sale proceeding on an “as-is, where-is” basis.
Key Highlights
- 4,800‑square‑foot multi‑tenant retail building
- Dedicated parking lot included
- Built in 1950
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
$129,655
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
4.99%
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%
$2,593,100
$2.6M
Cap Rate 7%
$1,852,214
$1.9M
Cap Rate 9%
$1,440,611
$1.4M
Market Conditions
NOI Build-Up for 4,800 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
$194.1K $40.44/SF
− Vacancy
−$8.9K −$1.85/SF
EGI
$185.2K $38.59/SF
− OpEx
−$55.6K −$11.58/SF
NOI
$129.7K $27.01/SF
Area
San Jose, CA
Vacancy
4.58%
Lease Rate
$40.44 /SF/Yr
Expense Ratio
30.00%
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%
$2,593,100
Cap Rate 7%
$1,852,214
Cap Rate 9%
$1,440,611
Alternative Uses
Best Use
Retail
$1.85M
$1.62M – $2.16M
NOI $129,655 @ 7.0% cap · market cap 4.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.90M
$2.54M – $3.38M
NOI $202,921 @ 7.0% cap · market cap 7.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,832
Businesses Nearby
146k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 39%
Apparel 21%
Dining 20%
Groceries 20%
Dollar Tree
Shops & Services
21,345 visits/mo
0.3 miles
Zanotto's Family Market
Groceries
20,663 visits/mo
0.4 miles
Jack in the Box
Dining
15,488 visits/mo
0.4 miles
Shell
Shops & Services
15,283 visits/mo
0.5 miles
Crossroads Trading Co.
Apparel
14,103 visits/mo
0.2 miles
Demographics for 95128, CA
34,776
Population
15,193
Households
2.3
Avg Household Size
38
Median Age
52%
College-Educated
90%
High-School Grad
3.9 sq mi
ZIP Area
8,917
Density / Sq Mi
$122,647
Median Household Income
$71,504
Median Earnings
$2,505
Median Rent
$1,214,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in San Jose, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Dedicated parking serves a multi-tenant retail configuration in San Jose.
Where is this strip mall located?
The property is located at 1854 W San Carlos St San Jose, CA.
What is the asking price?
The asking price for this property is $2,600,000.
What are key features of this property?
This property features: 4,800‑square‑foot multi‑tenant retail building; Dedicated parking lot included; Built in 1950
