Turnkey Office & Retail
For Sale
$3,500,000
1939 Divisadero Street, San Francisco, CA 94115
Commercial Sale, Other - San Francisco, CA
Property Size7,179 SF
Lot Size0.07 Acres
Price / SF$487.53
Days on Market46
Property Features for 1939 Divisadero Street
General Information
Property type
Commercial Sale
Property subtype
Office
Standard status
Active
APN
1028002B
Size
7,179 SF
Lot size
0.07 Acres
Building Details
Year built
1923
Architectural style
Other
Listing Agency:
Engel & Völkers San Francisco Union Street
(415) 689-8592
Listed By:
Michael B Johnston
Added: Jun 26
Changed: Jul 15
Last Checked: Aug 10 at 4:06PM
MLS# 426142225
Copyright © 2026 Engel & Völkers. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
1939 Divisadero Street is a turnkey, professionally maintained building originally constructed as an apartment building and converted into office suites. The property is configured with 24 individual office spaces plus one ground-floor retail suite, offering a mixed-use setup within a single investment asset. Management is in place and may be available to remain, supporting a smooth transition for a new owner.
The building is located at 1939 Divisadero Street in San Francisco, positioned along the Divisadero corridor. The tenant base is primarily composed of therapists and counseling professionals, reflecting a roster of small tenant operations. Current occupancy is strong, with only three office vacancies noted in the remarks.
For investors and owner-users, the mix of many smaller spaces and a flexible lease structure provides practical operating options. The property is described as income-producing with an in-place 6.5% capitalization rate based on current performance, while still allowing room for continued rental growth through the remaining vacancy and leasing momentum. This setup can appeal to buyers looking for apartment-style stability paired with commercial flexibility in a professional office and retail configuration.
The building is located at 1939 Divisadero Street in San Francisco, positioned along the Divisadero corridor. The tenant base is primarily composed of therapists and counseling professionals, reflecting a roster of small tenant operations. Current occupancy is strong, with only three office vacancies noted in the remarks.
For investors and owner-users, the mix of many smaller spaces and a flexible lease structure provides practical operating options. The property is described as income-producing with an in-place 6.5% capitalization rate based on current performance, while still allowing room for continued rental growth through the remaining vacancy and leasing momentum. This setup can appeal to buyers looking for apartment-style stability paired with commercial flexibility in a professional office and retail configuration.
Key Highlights
- Built in 1923; converted from an original apartment building into professional office suites
- 24 individual office spaces plus 1 ground‑floor retail suite
- Tenant roster primarily includes therapists and counseling professionals
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
$176,893
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
5.05%
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%
$3,537,860
$3.5M
Cap Rate 7%
$2,527,043
$2.5M
Cap Rate 9%
$1,965,478
$2.0M
Market Conditions
NOI Build-Up for 7,179 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
$316.2K $44.04/SF
− Vacancy
−$80.3K −$11.19/SF
EGI
$235.9K $32.85/SF
− OpEx
−$59.0K −$8.21/SF
NOI
$176.9K $24.64/SF
Area
San Francisco, CA
Vacancy
25.40%
Lease Rate
$44.04 /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%
$3,537,860
Cap Rate 7%
$2,527,043
Cap Rate 9%
$1,965,478
Alternative Uses
Best Use
Retail
$32.73M
$28.64M – $38.18M
NOI $2,291,009 @ 7.0% cap · market cap 65.46%
Second Best
Office B
$2.53M
$2.21M – $2.95M
NOI $176,893 @ 7.0% cap · market cap 5.05%
Theoretical Best
Specialty Retail
$35.07M
$30.68M – $40.91M
NOI $2,454,653 @ 7.0% cap · market cap 70.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
24
Office units
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
8,217
Businesses Nearby
Explore this area
Business Placement
Demographics for 94115, CA
35,853
Population
19,312
Households
1.9
Avg Household Size
38
Median Age
74%
College-Educated
96%
High-School Grad
1.1 sq mi
ZIP Area
32,594
Density / Sq Mi
$154,264
Median Household Income
$103,538
Median Earnings
$2,380
Median Rent
$1,684,100
Median Home Value
Market
Vacancy Rate% for Office in San Francisco, CA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Turnkey office building with 24 suites and a ground-floor retail suite, with only three office vacancies.
Where is this office building located?
The property is located at 1939 Divisadero Street San Francisco, CA.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: Built in 1923; converted from an original apartment building into professional office suites; 24 individual office spaces plus 1 ground‑floor retail suite; Tenant roster primarily includes therapists and counseling professionals
