Functional Owner/User Facility For
For Sale
Contact for pricing
1550 La Pradera Dr, Campbell, CA 95008
Excellent owner/user facility with functional rear yard space.
Property Size4,500 SF
Price / SF$665.56
Days on Market172
Property Features for 1550 La Pradera Dr
General Information
Standard status
Active
Size
4,500 SF
Class
C
Property subtype
Office
Zoning
PO (Professional Office)
Occupancy
67%
Lease Type
Gross
Investment Type
Owner/User
Building Details
Year Renovated
2025
Buildings
1
Stories
2
Units
6
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Palo Alto
Listed By:
Bryan DiMesio · License #01967714
Source:
Crexi
Added: Feb 22
Changed: Aug 8
Last Checked: Aug 12 at 1:48PM
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.
This 4,500 square foot building is an excellent owner/user facility featuring a functional rear yard space. The building is divided into 6 individual units with tenants on month-to-month leases; the walls could be reconfigured to create 2 contiguous spaces. The current zoning is PO (Professional Office), which allows for office/satellite office use, daycare/day school use, community space, and light retail. The property is located on a well-traveled intersection of Campbell Avenue and San Tomas Aquino Road, surrounded by major retailers such as Grocery Outlet, Nob Hill Foods, REI, and Crumbl Cookies. It is less than a mile from Moreland School District, Latimer School, and Action Day Schools Middle School. The PO zoning district permits administrative, professional, and research activities, and may provide customer service and instruction for personal or professional purposes.
Key Highlights
- Functional rear yard space.
- Potential to convert into 2 contiguous spaces.
- PO (Professional Office) zoning** allows for diverse uses (office, daycare, community space, light retail).
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
$158,306
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
5.29%
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%
$3,166,120
$3.2M
Cap Rate 7%
$2,261,514
$2.3M
Cap Rate 9%
$1,758,956
$1.8M
Market Conditions
NOI Build-Up for 4,500 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
$252.2K $56.04/SF
− Vacancy
−$41.1K −$9.13/SF
EGI
$211.1K $46.91/SF
− OpEx
−$52.8K −$11.73/SF
NOI
$158.3K $35.18/SF
Area
Santa Clara County, CA
Vacancy
16.30%
Lease Rate
$56.04 /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%
$3,166,120
Cap Rate 7%
$2,261,514
Cap Rate 9%
$1,758,956
Alternative Uses
Best Use
Office B
$2.26M
$1.98M – $2.64M
NOI $158,306 @ 7.0% cap · market cap 5.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.72M
$2.38M – $3.17M
NOI $190,170 @ 7.0% cap · market cap 6.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
782
Businesses Nearby
Explore this area
Business Placement
Demographics for 95008, CA
49,038
Population
20,013
Households
2.5
Avg Household Size
39
Median Age
59%
College-Educated
93%
High-School Grad
6.5 sq mi
ZIP Area
7,544
Density / Sq Mi
$142,841
Median Household Income
$84,022
Median Earnings
$2,694
Median Rent
$1,578,800
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 - Excellent owner/user facility with functional rear yard space.
Where is this office building located?
The property is located at 1550 La Pradera Dr Campbell, CA.
What is the asking price?
The asking price for this property is $2,995,000.
What are key features of this property?
This property features: Functional rear yard space.; Potential to convert into **2 contiguous spaces**.; PO (Professional Office) zoning** allows for diverse uses (office, daycare, community space, light retail).
