Third-Floor Medical Office
For Sale
$749,000
2039 Forest Avenue 304, San Jose, CA 95128
Office condominium with reception, two offices, four plumbed exam rooms, and restroom—walkable to O'Connor Hospital.
Property Size1,600 SF
Price / SF$468.13
Days on Market98
Property Features for 2039 Forest Avenue 304
General Information
Standard status
Active
Size
1,600 SF
Property subtype
Commercial/Industrial
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$10,811
Building Details
Year Built
1985
Listing Agency:
Coldwell Banker Realty
(408) 355-1500
Listed By:
Chris Shaheen · License #01421630
(408) 621-7473
Source:
Exitrealty
Added: Jun 1
Changed: Sep 5
Last Checked: Sep 5 at 6:45AM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
Approximately 1,600-square-foot medical/professional office condominium is located on the third floor and is laid out for patient-facing operations. The space includes a front reception area with waiting space, two offices, four plumbed exam rooms, and a restroom, supporting a practical workflow for medical or related professional use.
The property is situated on Forest Avenue in San Jose, within walking distance to O'Connor Hospital. Access is also convenient to major routes including 280, 880, and nearby destinations such as Santana Row and Valley Fair.
This suite is a strong fit for a healthcare provider or professional practice seeking an owner-occupied office setup with dedicated exam room infrastructure. The presence of reception and multiple plumbed exam rooms can streamline intake and patient visits, while the included offices provide space for private consultations or administrative work.
The property is situated on Forest Avenue in San Jose, within walking distance to O'Connor Hospital. Access is also convenient to major routes including 280, 880, and nearby destinations such as Santana Row and Valley Fair.
This suite is a strong fit for a healthcare provider or professional practice seeking an owner-occupied office setup with dedicated exam room infrastructure. The presence of reception and multiple plumbed exam rooms can streamline intake and patient visits, while the included offices provide space for private consultations or administrative work.
Key Highlights
- Approximately 1,600 SF medical/professional office condominium
- Third‑floor suite with front reception and waiting area
- Includes two offices
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
$56,287
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
7.51%
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%
$1,125,740
$1.1M
Cap Rate 7%
$804,100
$804.1K
Cap Rate 9%
$625,411
$625.4K
Market Conditions
NOI Build-Up for 1,600 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
$89.7K $56.04/SF
− Vacancy
−$14.6K −$9.13/SF
EGI
$75.0K $46.91/SF
− OpEx
−$18.8K −$11.73/SF
NOI
$56.3K $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%
$1,125,740
Cap Rate 7%
$804,100
Cap Rate 9%
$625,411
Alternative Uses
Best Use
Office B
$804.1K
$703.6K – $938.1K
NOI $56,287 @ 7.0% cap · market cap 7.51%
Second Best
Healthcare Medical
$382.6K
$334.8K – $446.4K
NOI $26,784 @ 7.0% cap · market cap 3.58%
Theoretical Best
Office A
$966.3K
$845.5K – $1.13M
NOI $67,640 @ 7.0% cap · market cap 9.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
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
Market
Vacancy Rate% for Office in San Jose, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Office condominium with reception, two offices, four plumbed exam rooms, and restroom—walkable to O'Connor Hospital.
Where is this medical office space located?
The property is located at 2039 Forest Avenue 304 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: Approximately 1,600 SF medical/professional office condominium; Third‑floor suite with front reception and waiting area; Includes two offices
