Two-Unit Medical Office
New
For Sale
$749,000
2039 Forest Ave 301, San Jose, CA 95128
Top-floor professional office configured for clinical use with reception, exam rooms, private offices, and patient-support areas.
Property Size2,054 SF
Price / SF$364.65
Days on Market2
Property Features for 2039 Forest Ave 301
General Information
Standard status
Active
Size
2,054 SF
Additional Details
Floor
3
HOA Fee
$1,050
Highway Access
Yes
Office Units
2
Building Details
Year Built
1985
Buildings
1
Stories
3
Owner Occupied
Yes
Listing Agency:
Real Estate 38
Listed By:
Zaid Hanna
(408) 515-1613
Source:
Homeisv
Added: Sep 22
Changed: Sep 23
Last Checked: Sep 21 at 8:26AM
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 Real Estate 38
Investment Insights
Based on property information with market context.
Located at 2039 Forest Avenue in San Jose, this offering combines two condominium office units on the third and top floor. Unit 301 contains 1,002 square feet and Unit 302 contains 1,052 square feet, providing a combined 2,054 square feet of office space. The suites are configured to operate together as one practice environment.
The existing layout includes a lobby, waiting area, reception area, four exam rooms, two private offices, a utility room, kitchen, storage, and two bathrooms, including one with a shower. The sale includes APNs 274-60-009 and 274-60-010. The property is near O'Connor Hospital, Santana Row, Valley Fair, and major highways, with possession available at close of escrow.
The existing layout includes a lobby, waiting area, reception area, four exam rooms, two private offices, a utility room, kitchen, storage, and two bathrooms, including one with a shower. The sale includes APNs 274-60-009 and 274-60-010. The property is near O'Connor Hospital, Santana Row, Valley Fair, and major highways, with possession available at close of escrow.
Key Highlights
- Combined 2,054 square feet across two condominium office units
- Unit 301 includes 1,002 square feet; Unit 302 includes 1,052 square feet
- Clinical layout with 4 exam rooms, 2 offices, reception, lobby, and waiting area
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
$34,384
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
4.59%
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%
$687,680
$687.7K
Cap Rate 7%
$491,200
$491.2K
Cap Rate 9%
$382,044
$382.0K
Market Conditions
NOI Build-Up for 2,054 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
$61.6K $30.00/SF
− Vacancy
−$4.3K −$2.10/SF
EGI
$57.3K $27.90/SF
− OpEx
−$22.9K −$11.16/SF
NOI
$34.4K $16.74/SF
Area
San Jose, CA
Vacancy
7.00%
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%
$687,680
Cap Rate 7%
$491,200
Cap Rate 9%
$382,044
Alternative Uses
Best Use
Office B
$1.03M
$903.2K – $1.20M
NOI $72,258 @ 7.0% cap · market cap 9.65%
Second Best
Healthcare Medical
$491.2K
$429.8K – $573.1K
NOI $34,384 @ 7.0% cap · market cap 4.59%
Theoretical Best
Office A
$1.24M
$1.09M – $1.45M
NOI $86,833 @ 7.0% cap · market cap 11.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
2
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,997
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95128, CA
34,776
Population
15,193
Households
2.3
Avg Household Size
38
Median Age
52%
College-Educated
90%
High-School Grad
3.9 sq mi
ZIP Area
8,917
Density / Sq Mi
$122,647
Median Household Income
$71,504
Median Earnings
$2,505
Median Rent
$1,214,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in San Jose, CA
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Top-floor professional office configured for clinical use with reception, exam rooms, private offices, and patient-support areas.
Where is this medical office space located?
The property is located at 2039 Forest Ave 301 San Jose, CA.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: Combined 2,054 square feet across two condominium office units; Unit 301 includes 1,002 square feet; Unit 302 includes 1,052 square feet; Clinical layout with 4 exam rooms, 2 offices, reception, lobby, and waiting area
