Professional Office Building For
For Sale
$779,000
2535 Ceanothus, Chico, CA 95973
2008-built office building with long-term leases in place.
Property Size3,000 SF
Lot Size0.03 Acres
Price / SF$259.67
Days on Market152
Property Features for 2535 Ceanothus
General Information
Standard status
Active
Size
3,000 SF
Lot size
0.03 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$9,398
Building Details
Building Size
3,000 SF
Year Built
2008
Listing Agency:
Keller Williams Realty Chico Area
(530) 212-7373
Listed By:
Matthew Herman · License #01505777
(530) 212-7373
Source:
Elliman
Added: Mar 23
Changed: Aug 12
Last Checked: Aug 21 at 9:27AM
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 Keller Williams Realty Chico Area
Investment Insights
Based on property information with market context.
This professional office building, constructed in 2008, is located in the Pleasant Valley Courtyard. The 3,000-square-foot structure is divided into two 1,500-square-foot units, each with a private entrance and independent utility meters. Unit #120 features four large individual offices, while Unit #128 is built out for a dental or medical practice. The building has a metal roof, wood framing, and a photovoltaic solar system for energy efficiency. The property is centrally located on Ceanothus Avenue, near Pleasant Valley High School and the Safeway Shopping Center. The property has long-term leases in place through 2025 and 2028.
Key Highlights
- Prime investment opportunity in the sought‑after Pleasant Valley Courtyard.
- Stable, long‑term leases in place through 2025 and 2028, providing immediate and consistent returns.
- Two 1,500‑square‑foot units, each with private entrance and independent utility meters.
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
$34,884
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
4.48%
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%
$697,680
$697.7K
Cap Rate 7%
$498,343
$498.3K
Cap Rate 9%
$387,600
$387.6K
Market Conditions
NOI Build-Up for 3,000 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
$61.2K $20.40/SF
− Vacancy
−$3.1K −$1.02/SF
EGI
$58.1K $19.38/SF
− OpEx
−$23.3K −$7.75/SF
NOI
$34.9K $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%
$697,680
Cap Rate 7%
$498,343
Cap Rate 9%
$387,600
Alternative Uses
Best Use
Healthcare Medical
$498.3K
$436.1K – $581.4K
NOI $34,884 @ 7.0% cap · market cap 4.48%
Second Best
Office B
$453.6K
$396.9K – $529.2K
NOI $31,749 @ 7.0% cap · market cap 4.08%
Theoretical Best
Office A
$605.7K
$530.0K – $706.7K
NOI $42,401 @ 7.0% cap · market cap 5.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
436
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
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - 2008-built office building with long-term leases in place.
Where is this office building located?
The property is located at 2535 Ceanothus Chico, CA.
What is the asking price?
The asking price for this property is $779,000.
What are key features of this property?
This property features: Prime investment opportunity in the sought‑after Pleasant Valley Courtyard.; Stable, long‑term leases in place through 2025 and 2028, providing immediate and consistent returns.; Two 1,500‑square‑foot units, each with private entrance and independent utility meters.
