Morgan Hill Self-Storage
For Sale
$2,700,000
16325 Barrett Avenue, Morgan Hill, CA 95037
Well-located self-storage facility in Morgan Hill, California.
Property Size10,380 SF
Lot Size0.81 Acres
Price / SF$260.12
Days on Market287
Property Features for 16325 Barrett Avenue
General Information
Standard status
Active
Size
10,380 SF
Lot size
0.81 Acres
Property subtype
Commercial
Building Details
Year Built
1978
Listing Agency:
MARCUS & MILLICHAP
(650) 391-1700
Listed By:
ADAM S. LEVIN · License #01462752
Source:
Corcoran
Added: Nov 5, 2025
Changed: Jul 6
Last Checked: Aug 18 at 6:11AM
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
Investment Insights
Based on property information with market context.
Located at 16325 Barrett Ave in Morgan Hill, California, Storwell-Barrett is a self-storage facility situated in a high barrier-to-entry market. Constructed in 1978, the property sits on a 0.81-acre parcel of land. The facility encompasses approximately 10,380 total square feet and features 100% drive-up units with roll-up doors. Tenants benefit from modern conveniences, including 24-hour surveillance and a secure gated perimeter with keypad access. The location in Morgan Hill ensures consistent storage needs from residents and businesses due to the growing residential population and business community. This property presents an investment opportunity for those looking to enter the California self-storage market. Local storage operators can benefit from economies of scale, while exchange or cross-product buyers will appreciate the stable cash flow and simplified management associated with self-storage. Additionally, local apartment investors may diversify their portfolio and create cross-marketing opportunities between residential and storage properties. Self-storage is not subject to any local or state rent control laws.
Key Highlights
- Located in a high barrier‑to‑entry market (Morgan Hill, CA) with strong demand.
- 100% drive‑up units with roll‑up doors.
- Remotely managed self‑storage facility.
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
$173,253
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
6.42%
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%
$3,465,060
$3.5M
Cap Rate 7%
$2,475,043
$2.5M
Cap Rate 9%
$1,925,033
$1.9M
Market Conditions
NOI Build-Up for 10,380 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
$267.8K $25.80/SF
− Vacancy
−$20.3K −$1.96/SF
EGI
$247.5K $23.84/SF
− OpEx
−$74.3K −$7.15/SF
NOI
$173.3K $16.69/SF
Area
Santa Clara County, CA
Vacancy
7.58%
Lease Rate
$25.80 /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%
$3,465,060
Cap Rate 7%
$2,475,043
Cap Rate 9%
$1,925,033
Alternative Uses
Best Use
Industrial
$2.48M
$2.17M – $2.89M
NOI $173,253 @ 7.0% cap · market cap 6.42%
Second Best
Self Storage
$1.41M
$1.23M – $1.64M
NOI $98,353 @ 7.0% cap · market cap 3.64%
Theoretical Best
Office A
$6.27M
$5.48M – $7.31M
NOI $438,660 @ 7.0% cap · market cap 16.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,368
Businesses Nearby
Explore this area
Business Placement
Demographics for 95037, CA
53,126
Population
17,185
Households
3.1
Avg Household Size
41
Median Age
44%
College-Educated
90%
High-School Grad
120.1 sq mi
ZIP Area
442
Density / Sq Mi
$158,256
Median Household Income
$71,130
Median Earnings
$2,242
Median Rent
$1,152,400
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Self storage facility - Well-located self-storage facility in Morgan Hill, California.
Where is this self storage facility located?
The property is located at 16325 Barrett Avenue Morgan Hill, CA.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: Located in a high barrier‑to‑entry market (Morgan Hill, CA) with strong demand.; 100% drive‑up units with roll‑up doors.; Remotely managed self‑storage facility.
