Building Details

Year Built 1980

Listing Agency: W Real Estate r***@wrealestate.net Show Phone

Listed By: Randy Waller · License #01795950 Show Phone

Source: Compass

Added: Mar 7 Changed: Aug 8 Last Checked: Jul 15 at 11:00PM

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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 W Real Estate

Investment Insights

Based on property information with market context.

Located along the scenic Bodega corridor, 17235 Bodega Highway offers a multi-parcel opportunity in Sonoma County's West County market. The property includes an existing 1,254-square-foot commercial building and two additional parcels, creating flexibility for a range of uses. The structure is suitable for retail, office, or service-oriented businesses. One of the parcels includes approval for a 4-bedroom septic system, opening possibilities for residential development, live/work configurations, or future expansion. The location is in the rolling coastal hills of Bodega, providing a tranquil rural setting minutes from the Pacific Ocean and Bodega Bay. The property benefits from visibility and traffic from locals and visitors traveling from the Bay Area to the Sonoma Coast. With access to Sebastopol and Santa Rosa, the site offers a balance of seclusion and connectivity. This is a chance to secure a versatile asset in a region known for its natural beauty, historic character, and proximity to the greater Bay Area.

Key Highlights

• Multi‑parcel property with commercial building and residential development potential.
• Approved 4‑bedroom septic system on second parcel allows for residential development or expansion.
• Prime location on Bodega Highway with high visibility and traffic.

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

$17,705

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

2.96%

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%

$354,100 $354.1K

Cap Rate 7%

$252,929 $252.9K

Cap Rate 9%

$196,722 $196.7K

Market Conditions

NOI Build-Up for 1,254 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

$27.8K $22.20/SF

− Vacancy

−$4.2K −$3.37/SF

EGI

$23.6K $18.83/SF

− OpEx

−$5.9K −$4.71/SF

NOI

$17.7K $14.12/SF

Area

Sonoma County, CA

Vacancy

15.20%

Lease Rate

$22.20 /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%

$354,100

Cap Rate 7%

$252,929

Cap Rate 9%

$196,722

Alternative Uses

Best Use

Office B

$252.9K

$221.3K – $295.1K (±1% cap)

NOI $17,705 @ 7.0% cap · market cap 2.96%

Second Best

Mixed Use

$236.5K

$206.9K – $275.9K (±1% cap)

NOI $16,553 @ 7.0% cap · market cap 2.76%

Theoretical Best

Specialty Retail

$339.8K

$297.3K – $396.4K (±1% cap)

NOI $23,786 @ 7.0% cap · market cap 3.97%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Suggested Use

Top Pick Auto Parts Store Cafe & Coffee Shop Nail Salon (Bike/Boat/Book/etc) Store Gym & Fitness Center Restaurant

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

42

Businesses Nearby

Explore this area Business Placement

Demographics for 94922, CA

176

Population

83

Households

2.1

Avg Household Size

45

Median Age

86%

High-School Grad

4.4 sq mi

ZIP Area

40

Density / Sq Mi

$131,895

Median Household Income

$32,057

Median Earnings

Market

Vacancy Rate% for Office in West region

11% 2019

14.1% 2020

15.5% 2021

17.2% 2022

19.9% 2023

21% 2024

20.8% 2025

Questions? Ask Rey

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What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Versatile property with commercial building and residential development potential.

Where is this mixed-use property located?

The property is located at 17235 Bodega Highway Bodega, CA.

What is the asking price?

The asking price for this property is $599,000.

What are key features of this property?

This property features: Multi‑parcel property with commercial building and residential development potential.; Approved 4‑bedroom septic system on second parcel allows for residential development or expansion.; Prime location on Bodega Highway with high visibility and traffic.