Cold Shell Retail
For Sale
$449,000
18491 Monterey, Morgan Hill, CA 95037
Fully built cold shell space within a modern, all-electric, solar-powered community.
Property Size638 SF
Price / SF$703.76
Days on Market95
Property Features for 18491 Monterey
General Information
Standard status
Active
Size
638 SF
Property subtype
Commercial
Listing Agency:
CITY VENTURES CONSTRUCTION, INC
2587555
Listed By:
PETRISE SWITZER · License #01862316
Source:
Corcoran
Added: May 29
Changed: Aug 30
Last Checked: Aug 30 at 7:10PM
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 CITY VENTURES CONSTRUCTION, INC
Investment Insights
Based on property information with market context.
This retail offering includes a fully built cold shell unit measuring 638 square feet at 18491 Monterey in Morgan Hill, California. The property is part of a five-unit commercial component offered separately from a 49-unit townhome-style condominium community. Available spaces across the project range from 626 to 1,340 square feet, providing multiple size options within the same development.
The commercial units sit beside an established retail corridor with Starbucks, a nail salon, a hair salon, and an AMPM. The surrounding project is designed as a modern, all-electric, solar-powered community, placing the retail space within an active residential setting and near existing consumer-oriented businesses.
The commercial units sit beside an established retail corridor with Starbucks, a nail salon, a hair salon, and an AMPM. The surrounding project is designed as a modern, all-electric, solar-powered community, placing the retail space within an active residential setting and near existing consumer-oriented businesses.
Key Highlights
- 638 SF cold shell retail unit at 18491 Monterey
- Five commercial units ranging from 626 to 1,340 square feet
- Part of a 49‑unit townhome‑style condominium community
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
$17,233
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
3.84%
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%
$344,660
$344.7K
Cap Rate 7%
$246,186
$246.2K
Cap Rate 9%
$191,478
$191.5K
Market Conditions
NOI Build-Up for 638 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
$25.8K $40.44/SF
− Vacancy
−$1.2K −$1.85/SF
EGI
$24.6K $38.59/SF
− OpEx
−$7.4K −$11.58/SF
NOI
$17.2K $27.01/SF
Area
Santa Clara County, CA
Vacancy
4.58%
Lease Rate
$40.44 /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%
$344,660
Cap Rate 7%
$246,186
Cap Rate 9%
$191,478
Alternative Uses
Best Use
Retail
$246.2K
$215.4K – $287.2K
NOI $17,233 @ 7.0% cap · market cap 3.84%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$385.2K
$337.0K – $449.4K
NOI $26,962 @ 7.0% cap · market cap 6.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
657
Businesses Nearby
39k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 68%
Shops & Services 27%
Beauty & Spa 5%
Starbucks
Dining
17,154 visits/mo
0.3 miles
7-Eleven
Shops & Services
10,472 visits/mo
0.4 miles
Starbucks
Dining
9,097 visits/mo
0.1 miles
Sola Salon Studios
Beauty & Spa
2,004 visits/mo
0.1 miles
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 Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Retail space - Fully built cold shell space within a modern, all-electric, solar-powered community.
Where is this retail space located?
The property is located at 18491 Monterey Morgan Hill, CA.
What is the asking price?
The asking price for this property is $449,000.
What are key features of this property?
This property features: 638 SF cold shell retail unit at 18491 Monterey; Five commercial units ranging from 626 to 1,340 square feet; Part of a 49‑unit townhome‑style condominium community
