Flex Retail/Office
For Sale
$2,495,000
2500 Zanella Way, Chico, CA 95928
Suite at a retail shopping center that can serve as office or retail space, with NNN charges added.
Property Size8,160 SF
Days on Market135
Property Features for 2500 Zanella Way
General Information
Standard status
Active
Size
8,160 SF
Property subtype
Commercial
Building Details
Building Size
8,160 SF
Year Built
1985
Units
4
Listing Agency:
Century 21 Select Real Estate Chico
(530) 419-1600
Listed By:
Brandon Harris
(530) 419-1600
Source:
Elliman
Added: Apr 11
Changed: Aug 23
Last Checked: Aug 21 at 10:07PM
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 Century 21 Select Real Estate Chico
Investment Insights
Based on property information with market context.
This retail shopping center offers a suite that can be used for office or retail. The listing notes that NNN charges are an additional $0.25 per square foot.
The property is located in a high traffic area on Skyway, providing exposure for businesses seeking visibility from passing traffic. The address is 2500 Zanella Way, Unit C, Chico, CA 95928.
The property is located in a high traffic area on Skyway, providing exposure for businesses seeking visibility from passing traffic. The address is 2500 Zanella Way, Unit C, Chico, CA 95928.
Key Highlights
- Suite at a retail shopping center that can serve as office or retail space
- Located in a high‑traffic area on Skyway
- NNN are an additional $0.25/ft
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
$100,941
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
4.05%
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%
$2,018,820
$2.0M
Cap Rate 7%
$1,442,014
$1.4M
Cap Rate 9%
$1,121,567
$1.1M
Market Conditions
NOI Build-Up for 8,160 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
$152.8K $18.72/SF
− Vacancy
−$8.6K −$1.05/SF
EGI
$144.2K $17.67/SF
− OpEx
−$43.3K −$5.30/SF
NOI
$100.9K $12.37/SF
Area
Chico, CA
Vacancy
5.60%
Lease Rate
$18.72 /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%
$2,018,820
Cap Rate 7%
$1,442,014
Cap Rate 9%
$1,121,567
Alternative Uses
Best Use
Retail
$1.44M
$1.26M – $1.68M
NOI $100,941 @ 7.0% cap · market cap 4.05%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.65M
$1.44M – $1.92M
NOI $115,329 @ 7.0% cap · market cap 4.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
831
Businesses Nearby
60k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Home Improvements & Furnishings 70%
Dining 19%
Shops & Services 11%
The Home Depot
Home Improvements & Furnishings
41,301 visits/mo
0.2 miles
Burger King
Dining
11,542 visits/mo
0.1 miles
Batteries Plus Bulbs
Shops & Services
2,752 visits/mo
0.0 miles
U-Haul
Shops & Services
2,626 visits/mo
0.4 miles
SmartStop Self Storage
Shops & Services
1,053 visits/mo
0.2 miles
Demographics for 95928, CA
38,378
Population
17,455
Households
2.2
Avg Household Size
35
Median Age
41%
College-Educated
90%
High-School Grad
145.4 sq mi
ZIP Area
264
Density / Sq Mi
$65,350
Median Household Income
$32,615
Median Earnings
$1,419
Median Rent
$476,600
Median Home Value
Market
Vacancy Rate% for Retail in West region
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?
Shopping center - Suite at a retail shopping center that can serve as office or retail space, with NNN charges added.
Where is this shopping center located?
The property is located at 2500 Zanella Way Chico, CA.
What is the asking price?
The asking price for this property is $2,495,000.
What are key features of this property?
This property features: Suite at a retail shopping center that can serve as office or retail space; Located in a high‑traffic area on Skyway; NNN are an additional $0.25/ft
