Two-Story Medical Office
For Sale
$2,500,000
2305 Van Ness Avenue, San Francisco, CA 94109
Two-story, 1956-built office building with RC-3 zoning near Van Ness BRT and CPMC Van Ness Campus.
Property Size5,565 SF
Price / SF$449.24
Days on Market91
Property Features for 2305 Van Ness Avenue
General Information
Standard status
Active
Size
5,565 SF
Property subtype
Office
Zoning
RC-3
Building Details
Building Size
5,565 SF
Year Built
1956
Stories
2
Listing Agency:
Compass Commercial
(415) 890-0704
Listed By:
Brian Leung
Source:
Swanngroupsf
Added: May 25
Changed: Aug 23
Last Checked: Aug 23 at 3:46AM
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 Compass Commercial
Investment Insights
Based on property information with market context.
2305 Van Ness Ave is a two-story office building constructed in 1956, totaling 5,565 square feet. The property sits in RC-3 (Residential, Commercial, Medium Density) zoning and is positioned to serve medical or professional operations, supported by its proximity to the new California Pacific Medical Center (CPMC) Van Ness Campus.
Located on the Van Ness Corridor, the building is less than a mile from the CPMC Van Ness Campus and offers convenient access to a major public transit spine via the Van Ness BRT. It also benefits from its setting between Pacific Heights, Russian Hill, and Polk Gulch, with nearby retail and dining associated with Polk Street.
Located on the Van Ness Corridor, the building is less than a mile from the CPMC Van Ness Campus and offers convenient access to a major public transit spine via the Van Ness BRT. It also benefits from its setting between Pacific Heights, Russian Hill, and Polk Gulch, with nearby retail and dining associated with Polk Street.
Key Highlights
- Two‑story, 5,565 SF office building built in 1956
- RC‑3 (Residential, Commercial, Medium Density) zoning
- Less than 1 mile to the new CPMC Van Ness Campus
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
$137,124
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
5.48%
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%
$2,742,480
$2.7M
Cap Rate 7%
$1,958,914
$2.0M
Cap Rate 9%
$1,523,600
$1.5M
Market Conditions
NOI Build-Up for 5,565 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
$245.1K $44.04/SF
− Vacancy
−$62.3K −$11.19/SF
EGI
$182.8K $32.85/SF
− OpEx
−$45.7K −$8.21/SF
NOI
$137.1K $24.64/SF
Area
ZIP 94109
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%
$2,742,480
Cap Rate 7%
$1,958,914
Cap Rate 9%
$1,523,600
Alternative Uses
Best Use
Office B
$1.96M
$1.71M – $2.29M
NOI $137,124 @ 7.0% cap · market cap 5.48%
Second Best
Healthcare Medical
$1.32M
$1.15M – $1.54M
NOI $92,156 @ 7.0% cap · market cap 3.69%
Theoretical Best
Retail
$25.37M
$22.20M – $29.60M
NOI $1,775,939 @ 7.0% cap · market cap 71.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
8,936
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 94109, CA
58,501
Population
39,043
Households
1.5
Avg Household Size
38
Median Age
65%
College-Educated
90%
High-School Grad
1.1 sq mi
ZIP Area
53,183
Density / Sq Mi
$112,201
Median Household Income
$89,841
Median Earnings
$2,172
Median Rent
$1,390,000
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.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-story, 1956-built office building with RC-3 zoning near Van Ness BRT and CPMC Van Ness Campus.
Where is this medical office space located?
The property is located at 2305 Van Ness Avenue San Francisco, CA.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Two‑story, 5,565 SF office building built in 1956; RC‑3 (Residential, Commercial, Medium Density) zoning; Less than 1 mile to the new CPMC Van Ness Campus
