Ground-Floor Medical Office
New
For Sale
$599,950
2360 Mckee Rd B5, San Jose, CA 95116
Existing clinical improvements include examination rooms, an X-ray room, and reception areas.
Property Size1,059 SF
Price / SF$566.53
Days on Market2
Property Features for 2360 Mckee Rd B5
General Information
Standard status
Active
Size
1,059 SF
Property subtype
Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Floor
Ground Floor
Building Details
Year Built
1985
Listing Agency:
Intero Real Estate Services
Listed By:
Johnathan Nguyen · License #01269674
(408) 342-3000
Source:
Pebblebeachproperties
Added: Sep 4
Last Checked: Sep 4 at 2:46PM
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 Intero Real Estate Services
Investment Insights
Based on property information with market context.
This 1,059-square-foot medical office condominium occupies a ground-floor position within a professional office building constructed in 1985. The former chiropractic office includes four examination rooms, a dedicated X-ray room, a private bathroom, reception counter, office and billing area, and a waiting lounge with ceiling fan. Two gender-specific common bathrooms serve the lobby.
Located at 2360 McKee Rd in San Jose, the suite is immediately adjacent to I-680 and positioned along McKee Road, which carries approximately 38,000 vehicles per day. Direct entry from the building’s wide double-door entrance provides convenient access to the first office suite. The property is also near Regional Medical Center of San Jose.
Located at 2360 McKee Rd in San Jose, the suite is immediately adjacent to I-680 and positioned along McKee Road, which carries approximately 38,000 vehicles per day. Direct entry from the building’s wide double-door entrance provides convenient access to the first office suite. The property is also near Regional Medical Center of San Jose.
Key Highlights
- 1,059‑square‑foot medical office condominium
- Ground‑floor suite immediately inside the building’s wide double‑door entrance
- Four examination rooms plus a dedicated X‑ray room
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
$37,255
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
6.21%
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%
$745,100
$745.1K
Cap Rate 7%
$532,214
$532.2K
Cap Rate 9%
$413,944
$413.9K
Market Conditions
NOI Build-Up for 1,059 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
$59.3K $56.04/SF
− Vacancy
−$9.7K −$9.13/SF
EGI
$49.7K $46.91/SF
− OpEx
−$12.4K −$11.73/SF
NOI
$37.3K $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%
$745,100
Cap Rate 7%
$532,214
Cap Rate 9%
$413,944
Alternative Uses
Best Use
Office B
$532.2K
$465.7K – $620.9K
NOI $37,255 @ 7.0% cap · market cap 6.21%
Second Best
Healthcare Medical
$253.3K
$221.6K – $295.5K
NOI $17,728 @ 7.0% cap · market cap 2.95%
Theoretical Best
Office A
$639.6K
$559.6K – $746.2K
NOI $44,769 @ 7.0% cap · market cap 7.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,668
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95116, CA
51,222
Population
13,987
Households
3.7
Avg Household Size
35
Median Age
21%
College-Educated
71%
High-School Grad
3.6 sq mi
ZIP Area
14,228
Density / Sq Mi
$83,428
Median Household Income
$41,992
Median Earnings
$2,049
Median Rent
$842,700
Median Home Value
Market
Vacancy Rate% for Office in San Jose, 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 - Existing clinical improvements include examination rooms, an X-ray room, and reception areas.
Where is this medical office space located?
The property is located at 2360 Mckee Rd B5 San Jose, CA.
What is the asking price?
The asking price for this property is $599,950.
What are key features of this property?
This property features: 1,059‑square‑foot medical office condominium; Ground‑floor suite immediately inside the building’s wide double‑door entrance; Four examination rooms plus a dedicated X‑ray room
