Monterey Medical Office
For Sale
$1,350,000
167 Davis Lane, Monterey, CA 93940
Medical office building in Monterey's medical district.
Property Size2,537 SF
Price / SF$532.12
Days on Market123
Property Features for 167 Davis Lane
General Information
Standard status
Active
Size
2,537 SF
Property subtype
Commercial/Industrial
Building Details
Year Built
1954
Listing Agency:
Albers Real Estate Investment Company
(831) 372-1922
Listed By:
Hap Albers · License #01006595
(831) 372-1922
Source:
Exitrealty
Added: Apr 24
Changed: Aug 23
Last Checked: Aug 23 at 8:00AM
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 Albers Real Estate Investment Company
Investment Insights
Based on property information with market context.
The Monterey Medical Office Building is situated in the heart of Monterey's medical district. According to city records, the property has an approved City of Monterey Use Permit to convert the building into a 1,464 sq. ft. residential unit and a 1,073 sq. ft. commercial office. The property is listed as 167 Davis in the tax records, though it fronts onto El Dorado Street, and the El Dorado address is 172. The bike score is 20, indicating it is somewhat bikeable. The walk score is 9, indicating car-dependent access. The transit score is 19, indicating minimal transit options.
Key Highlights
- Approved City of Monterey Use Permit for conversion to residential and commercial units.
- Potential for a 1,464 sq. ft. residential unit.
- Includes a 1,073 sq. ft. commercial office space.
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
$42,926
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
3.18%
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%
$858,520
$858.5K
Cap Rate 7%
$613,229
$613.2K
Cap Rate 9%
$476,956
$477.0K
Market Conditions
NOI Build-Up for 2,537 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
$76.1K $30.00/SF
− Vacancy
−$4.6K −$1.80/SF
EGI
$71.5K $28.20/SF
− OpEx
−$28.6K −$11.28/SF
NOI
$42.9K $16.92/SF
Area
Monterey County, CA
Vacancy
6.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
40.00%
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%
$858,520
Cap Rate 7%
$613,229
Cap Rate 9%
$476,956
Alternative Uses
Best Use
Healthcare Medical
$613.2K
$536.6K – $715.4K
NOI $42,926 @ 7.0% cap · market cap 3.18%
Second Best
Office B
$508.8K
$445.2K – $593.7K
NOI $35,619 @ 7.0% cap · market cap 2.64%
Theoretical Best
Specialty Retail
$968.7K
$847.6K – $1.13M
NOI $67,809 @ 7.0% cap · market cap 5.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,851
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 93940, CA
30,454
Population
15,451
Households
2
Avg Household Size
43
Median Age
54%
College-Educated
94%
High-School Grad
35.1 sq mi
ZIP Area
868
Density / Sq Mi
$110,669
Median Household Income
$62,711
Median Earnings
$2,305
Median Rent
$1,039,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical office building in Monterey's medical district.
Where is this medical office space located?
The property is located at 167 Davis Lane Monterey, CA.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Approved City of Monterey Use Permit for conversion to residential and commercial units.; Potential for a **1,464 sq. ft. residential unit.**; Includes a **1,073 sq. ft. commercial office space.**
