10-Suite NNN Strip
For Sale
$8,200,000
1581 Sycamore Ave, Hercules, CA 94547
Recently upgraded retail center with occupied suites and NNN lease structure.
Property Size14,170 SF
Price / SF$578.69
Days on Market92
Property Features for 1581 Sycamore Ave
General Information
Standard status
Active
Size
14,170 SF
Property subtype
Shopping Strip
Amenities
Premier Hercules Retail Investment Opportunity
Recent Capital Improvements
Strong Street Visibility
Ease of a NNN Lease Structure
Building Details
Building Size
14,170 SF
Year Built
1987
Listing Agency:
Marcus & Millichap - Palo Alto
(650) 391-1782
Listed By:
Adam Levin · License #License(s): CA: 01462752
(650) 391-1782
Source:
Marcusmillichap
Added: Jun 1
Changed: Aug 30
Last Checked: Aug 30 at 3:53PM
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 1581 Sycamore Ave in Hercules, California, this strip mall contains approximately 14,170 square feet across 10 retail suites. The property was constructed in 1987 and is occupied by 10 tenants under NNN leases. Recent capital work includes a new roof, structural building upgrades, and fresh exterior paint.
The center is part of a larger retail plaza anchored by The Home Depot. The surrounding area records approximately 19,660 vehicles per day, and The Home Depot manages the plaza parking lot, supporting ongoing maintenance and orderly vehicle circulation. The property occupies 1.48 acres and offers an established multi-tenant retail configuration within Contra Costa County.
The center is part of a larger retail plaza anchored by The Home Depot. The surrounding area records approximately 19,660 vehicles per day, and The Home Depot manages the plaza parking lot, supporting ongoing maintenance and orderly vehicle circulation. The property occupies 1.48 acres and offers an established multi-tenant retail configuration within Contra Costa County.
Key Highlights
- 10 occupied retail suites under NNN leases
- Approximately 14,170 square feet on 1.48 acres
- Recent capital improvements include a new roof, structural upgrades, and exterior paint
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
$362,354
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
4.42%
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%
$7,247,080
$7.2M
Cap Rate 7%
$5,176,486
$5.2M
Cap Rate 9%
$4,026,156
$4.0M
Market Conditions
NOI Build-Up for 14,170 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
$552.6K $39.00/SF
− Vacancy
−$35.0K −$2.47/SF
EGI
$517.6K $36.53/SF
− OpEx
−$155.3K −$10.96/SF
NOI
$362.4K $25.57/SF
Area
Contra Costa County, CA
Vacancy
6.33%
Lease Rate
$39.00 /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%
$7,247,080
Cap Rate 7%
$5,176,486
Cap Rate 9%
$4,026,156
Alternative Uses
Best Use
Retail
$5.18M
$4.53M – $6.04M
NOI $362,354 @ 7.0% cap · market cap 4.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.36M
$4.69M – $6.25M
NOI $374,938 @ 7.0% cap · market cap 4.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
568
Businesses Nearby
Explore this area
Business Placement
Demographics for 94547, CA
26,016
Population
9,615
Households
2.7
Avg Household Size
43
Median Age
46%
College-Educated
92%
High-School Grad
5.7 sq mi
ZIP Area
4,564
Density / Sq Mi
$130,583
Median Household Income
$61,756
Median Earnings
$3,003
Median Rent
$741,200
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Recently upgraded retail center with occupied suites and NNN lease structure.
Where is this strip mall located?
The property is located at 1581 Sycamore Ave Hercules, CA.
What is the asking price?
The asking price for this property is $8,200,000.
What are key features of this property?
This property features: 10 occupied retail suites under NNN leases; Approximately 14,170 square feet on 1.48 acres; Recent capital improvements include a new roof, structural upgrades, and exterior paint
