Elevator-Served Office
For Sale
Contact for pricing
2039 Forest Ave, San Jose, CA 95128
Second-floor condominium office suite with elevator service and close proximity to O’Connor Hospital.
Property Size2,514 SF
Price / SF$517.10
Days on Market50
Property Features for 2039 Forest Ave
General Information
Standard status
Active
Size
2,514 SF
Elevators
Yes
Property subtype
OFFICE
Additional Details
Floor
2
Listing Agency:
CBRE | San Jose
(408) 453-7400
Listed By:
Paul Lyles · License #01236021
(408) 307-5363
Source:
Moodyscre
Added: Jul 28
Changed: Sep 14
Last Checked: Sep 15 at 7:45AM
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 CBRE | San Jose
Investment Insights
Based on property information with market context.
Located in the 2039 Forest Ave Medical Building, this second-floor condominium office suite totals 2,514 SF. The suite is elevator served, supporting easy tenant and client access.
The building includes a three-floor parking garage, which can help accommodate day-to-day parking needs. It is also in close proximity to O’Connor Hospital, making it a convenient option for professional services that benefit from nearby healthcare demand.
This space is available as a condominium for sale or lease.
The building includes a three-floor parking garage, which can help accommodate day-to-day parking needs. It is also in close proximity to O’Connor Hospital, making it a convenient option for professional services that benefit from nearby healthcare demand.
This space is available as a condominium for sale or lease.
Key Highlights
- 2,514 SF second‑floor condominium office suite in the 2039 Forest Ave Medical Building
- Elevator‑served access to the second‑floor suite
- Three‑floor parking garage
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
$88,440
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
6.80%
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%
$1,768,800
$1.8M
Cap Rate 7%
$1,263,429
$1.3M
Cap Rate 9%
$982,667
$982.7K
Market Conditions
NOI Build-Up for 2,514 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
$140.9K $56.04/SF
− Vacancy
−$23.0K −$9.13/SF
EGI
$117.9K $46.91/SF
− OpEx
−$29.5K −$11.73/SF
NOI
$88.4K $35.18/SF
Area
San Jose, CA
Vacancy
16.30%
Lease Rate
$56.04 /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%
$1,768,800
Cap Rate 7%
$1,263,429
Cap Rate 9%
$982,667
Alternative Uses
Best Use
Office B
$1.26M
$1.11M – $1.47M
NOI $88,440 @ 7.0% cap · market cap 6.80%
Second Best
Healthcare Medical
$601.2K
$526.1K – $701.4K
NOI $42,084 @ 7.0% cap · market cap 3.24%
Theoretical Best
Office A
$1.52M
$1.33M – $1.77M
NOI $106,280 @ 7.0% cap · market cap 8.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,997
Businesses Nearby
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
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Market
Vacancy Rate% for Office in San Jose, CA
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Frequently Asked Questions
What type of property is this?
Office units - Second-floor condominium office suite with elevator service and close proximity to O’Connor Hospital.
Where is this office units located?
The property is located at 2039 Forest Ave San Jose, CA.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: 2,514 SF second‑floor condominium office suite in the 2039 Forest Ave Medical Building; Elevator‑served access to the second‑floor suite; Three‑floor parking garage
