Two-Level Office
New
For Sale
$625,000
24 Hanover Lane, Chico, CA 95973
Flexible professional property with separate entrances, exam rooms, private offices, and landscaped visitor areas.
Property Size3,392 SF
Price / SF$184.26
Days on Market5
Property Features for 24 Hanover Lane
General Information
Standard status
Active
Size
3,392 SF
Property subtype
Office
Amenities
outdoor seating areas
Central Air
Building Details
Year Built
1992
Buildings
1
Building Size
3,392 SF
Listing Agency:
(530) 895-9378
Listed By:
Chico Homes
Source:
Xome
Added: Sep 6
Changed: Sep 9
Last Checked: Sep 9 at 4:00PM
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 Chico Homes
Investment Insights
Based on property information with market context.
Built in 1992, this 3,392-square-foot office building offers a two-level configuration suited to professional operations. The main floor includes four exam rooms, several work areas, private offices, two bathrooms, and a foyer with reception space. A second entrance provides additional circulation and supports separation between departments or occupants.
The upper floor can be configured as two private office suites connected by a shared bathroom. Built-in storage, extensive counterspace, and large windows contribute to practical day-to-day functionality. Exterior improvements include sidewalks, established landscaping, and outdoor seating areas. A new roof is also in place. The property is located at 24 Hanover Lane in Chico, California.
The upper floor can be configured as two private office suites connected by a shared bathroom. Built-in storage, extensive counterspace, and large windows contribute to practical day-to-day functionality. Exterior improvements include sidewalks, established landscaping, and outdoor seating areas. A new roof is also in place. The property is located at 24 Hanover Lane in Chico, California.
Key Highlights
- 3,392‑square‑foot office building constructed in 1992
- Main level includes 4 exam rooms, work areas, private offices, and 2 bathrooms
- Upper level can accommodate 2 private office suites with a shared bathroom
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
$39,442
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
6.31%
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%
$788,840
$788.8K
Cap Rate 7%
$563,457
$563.5K
Cap Rate 9%
$438,244
$438.2K
Market Conditions
NOI Build-Up for 3,392 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
$69.2K $20.40/SF
− Vacancy
−$3.5K −$1.02/SF
EGI
$65.7K $19.38/SF
− OpEx
−$26.3K −$7.75/SF
NOI
$39.4K $11.63/SF
Area
Chico, CA
Vacancy
5.00%
Lease Rate
$20.40 /SF/Yr
Expense Ratio
40.00%
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%
$788,840
Cap Rate 7%
$563,457
Cap Rate 9%
$438,244
Alternative Uses
Best Use
Healthcare Medical
$563.5K
$493.0K – $657.4K
NOI $39,442 @ 7.0% cap · market cap 6.31%
Second Best
Office B
$512.8K
$448.7K – $598.3K
NOI $35,897 @ 7.0% cap · market cap 5.74%
Theoretical Best
Office A
$684.9K
$599.3K – $799.0K
NOI $47,941 @ 7.0% cap · market cap 7.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,036
Businesses Nearby
Explore this area
Business Placement
Demographics for 95973, CA
39,609
Population
15,836
Households
2.5
Avg Household Size
39
Median Age
41%
College-Educated
94%
High-School Grad
300.1 sq mi
ZIP Area
132
Density / Sq Mi
$92,228
Median Household Income
$45,897
Median Earnings
$1,546
Median Rent
$484,600
Median Home Value
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office building - Flexible professional property with separate entrances, exam rooms, private offices, and landscaped visitor areas.
Where is this office building located?
The property is located at 24 Hanover Lane Chico, CA.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: 3,392‑square‑foot office building constructed in 1992; Main level includes 4 exam rooms, work areas, private offices, and 2 bathrooms; Upper level can accommodate 2 private office suites with a shared bathroom
