San Francisco Industrial Building For
For Sale
$899,500
237 Clara Street, San Francisco, CA 94107
2000 SF industrial building in San Francisco's SOMA district.
Property Size2,000 SF
Lot Size0.05 Acres
Price / SF$449.75
Days on Market404
Property Features for 237 Clara Street
General Information
Standard status
Active
Size
2,000 SF
Lot size
0.05 Acres
Property subtype
Commercial
Listing Agency:
COMPASS COMMERCIAL
(415) 345-3000
Listed By:
STEVEN C GERRY · License #01926878
Source:
Corcoran
Added: Jul 4, 2025
Changed: Aug 8
Last Checked: Aug 8 at 11:58AM
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.
This is a 2,000 square foot commercial building dating back to 1923. Zoned MUR-45-X, this property offers possibilities for industrial and manufacturing ventures. The property is located in San Francisco's SOMA district, an area known for its tech-focused community. The location provides access to destinations such as ATT Park, the Yerba Buena Gardens, and the San Francisco Museum of Modern Art.
Key Highlights
- Strategic location in San Francisco's SOMA district.
- Zoned MUR‑45‑X, offering versatile possibilities.
- 2,000 SF building suitable for industrial or manufacturing ventures.
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
$49,281
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%
$985,620
$985.6K
Cap Rate 7%
$704,014
$704.0K
Cap Rate 9%
$547,567
$547.6K
Market Conditions
NOI Build-Up for 2,000 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
$88.1K $44.04/SF
− Vacancy
−$22.4K −$11.19/SF
EGI
$65.7K $32.85/SF
− OpEx
−$16.4K −$8.21/SF
NOI
$49.3K $24.64/SF
Area
San Francisco, CA
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%
$985,620
Cap Rate 7%
$704,014
Cap Rate 9%
$547,567
Alternative Uses
Best Use
Office B
$704.0K
$616.0K – $821.4K
NOI $49,281 @ 7.0% cap · market cap 5.48%
Second Best
Industrial
$486.0K
$425.3K – $567.0K
NOI $34,020 @ 7.0% cap · market cap 3.78%
Theoretical Best
Specialty Retail
$9.77M
$8.55M – $11.40M
NOI $683,843 @ 7.0% cap · market cap 76.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
13,412
Businesses Nearby
Explore this area
Business Placement
Demographics for 94107, CA
34,012
Population
18,798
Households
1.8
Avg Household Size
36
Median Age
77%
College-Educated
93%
High-School Grad
1.9 sq mi
ZIP Area
17,901
Density / Sq Mi
$186,123
Median Household Income
$118,676
Median Earnings
$3,378
Median Rent
$1,227,000
Median Home Value
Market
Vacancy Rate% for Office in San Francisco, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - 2000 SF industrial building in San Francisco's SOMA district.
Where is this industrial property located?
The property is located at 237 Clara Street San Francisco, CA.
What is the asking price?
The asking price for this property is $899,500.
What are key features of this property?
This property features: Strategic location in San Francisco's SOMA district.; Zoned MUR‑45‑X, offering versatile possibilities.; 2,000 SF building suitable for industrial or manufacturing ventures.
