Retail Property on Monterey
For Sale
Contact for pricing
2400 Monterey Hwy, San Jose, CA 95111
Multi-tenant retail property on a high-traffic corridor.
Property Size5,000 SF
Lot Size0.62 Acres
Price / SF$900
Days on Market1151
Property Features for 2400 Monterey Hwy
General Information
Standard status
Active
Size
5,000 SF
Lot size
0.62 Acres
Property subtype
Retail
Zoning
CIC
Occupancy
100%
Net Operating Income
$209,099
Building Details
Year Built
1960
Year Renovated
2022
Buildings
2
Units
4
Tenancy
Multi
Listing Agency:
NAI Northern California - HQ
Listed By:
Josh Ballesteros · License #CA 02010271
Source:
Crexi
Added: Jun 16, 2023
Changed: Aug 8
Last Checked: Aug 8 at 4:36AM
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 NAI Northern California - HQ
Investment Insights
Based on property information with market context.
This multi-tenant retail-commercial property is located on a high-traffic corridor of Monterey Highway in San Jose, California. Situated between I-680 to the north, Highway 87 to the west, and Highway 101 to the east, the property features two buildings housing a total of four tenants. The buildings are positioned on a highly visible 0.62-acre corner lot. The property's location offers proximity to industrial parks, residential developments, greenspaces, and other retail establishments.
Key Highlights
- Located on a high‑traffic corridor of Monterey Highway in San Jose, CA.
- Multi‑tenant retail‑commercial property with 4 tenants.
- Highly visible 0.62 AC corner lot.**
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
$135,057
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
3.00%
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%
$2,701,140
$2.7M
Cap Rate 7%
$1,929,386
$1.9M
Cap Rate 9%
$1,500,633
$1.5M
Market Conditions
NOI Build-Up for 5,000 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
$202.2K $40.44/SF
− Vacancy
−$9.3K −$1.85/SF
EGI
$192.9K $38.59/SF
− OpEx
−$57.9K −$11.58/SF
NOI
$135.1K $27.01/SF
Area
ZIP 95111
Vacancy
4.58%
Lease Rate
$40.44 /SF/Yr
Expense Ratio
30.00%
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%
$2,701,140
Cap Rate 7%
$1,929,386
Cap Rate 9%
$1,500,633
Alternative Uses
Best Use
Retail
$1.93M
$1.69M – $2.25M
NOI $135,057 @ 7.0% cap · market cap 3.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.00M
$2.63M – $3.50M
NOI $210,120 @ 7.0% cap · market cap 4.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,077
Businesses Nearby
489k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 50%
Superstores 22%
Shops & Services 11%
Electronics 8%
Target
Superstores
108,967 visits/mo
0.4 miles
Chick-fil-A
Dining
53,904 visits/mo
0.1 miles
Best Buy
Electronics
40,072 visits/mo
0.5 miles
McDonald's
Dining
34,072 visits/mo
0.3 miles
Taco Bell
Dining
17,318 visits/mo
0.0 miles
Demographics for 95111, CA
60,593
Population
16,303
Households
3.7
Avg Household Size
36
Median Age
20%
College-Educated
72%
High-School Grad
5.8 sq mi
ZIP Area
10,447
Density / Sq Mi
$97,162
Median Household Income
$43,577
Median Earnings
$1,954
Median Rent
$826,200
Median Home Value
Market
Vacancy Rate% for Retail in San Jose, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Multi-tenant retail property on a high-traffic corridor.
Where is this retail space located?
The property is located at 2400 Monterey Hwy San Jose, CA.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: Located on a **high‑traffic corridor of Monterey Highway in San Jose, CA.**; Multi‑tenant retail‑commercial property with 4 tenants.; Highly visible 0.62 AC corner lot.**
