Flexible Office
For Sale
$679,900
2623 Forest, Chico, CA 95928
Includes a lobby, private offices, open work area, and washer and dryer hookups.
Property Size3,250 SF
Price / SF$209.20
Days on Market13
Property Features for 2623 Forest
General Information
Standard status
Active
Size
3,250 SF
Property subtype
Office
Additional Details
Highway Access
Yes
Amenities
lobby
waiting area
private offices
large open workspace
washer and dryer hookups
Central Air
3
Electric Dryer
Tile
Level
Public Transport, Level.
Building Details
Year Built
2004
Buildings
1
Listing Agency:
Century 21 Select Real Estate, Inc.
(530) 345-6618
Listed By:
Kimberly Shaffer · License #01415693
Source:
Xome
Added: Aug 19
Changed: Aug 29
Last Checked: Aug 30 at 1:55PM
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, Inc.
Investment Insights
Based on property information with market context.
This stand-alone office property was constructed in 2004 and currently combines four originally separate units into a single larger workspace. The interior includes a lobby and waiting area, private offices, an open work area, and washer and dryer hookups, providing a varied configuration for business operations.
Access to Highway 99 and Skyway connects the property with Chico and surrounding communities, including Paradise and Oroville. The area includes professional offices, retail businesses, shopping, restaurants, and daily services.
The building may be reconfigured into four separate units, subject to applicable approvals and construction requirements. That layout offers flexibility for an owner-user seeking a portion of the property or for separate occupancy arrangements.
Access to Highway 99 and Skyway connects the property with Chico and surrounding communities, including Paradise and Oroville. The area includes professional offices, retail businesses, shopping, restaurants, and daily services.
The building may be reconfigured into four separate units, subject to applicable approvals and construction requirements. That layout offers flexibility for an owner-user seeking a portion of the property or for separate occupancy arrangements.
Key Highlights
- 2004 construction
- Originally configured as four separate units and later combined into one larger office space
- Lobby and waiting area, private offices, and open work area
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
$34,394
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
5.06%
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%
$687,880
$687.9K
Cap Rate 7%
$491,343
$491.3K
Cap Rate 9%
$382,156
$382.2K
Market Conditions
NOI Build-Up for 3,250 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
$48.0K $14.76/SF
− Vacancy
−$2.1K −$0.65/SF
EGI
$45.9K $14.11/SF
− OpEx
−$11.5K −$3.53/SF
NOI
$34.4K $10.58/SF
Area
Chico, CA
Vacancy
4.40%
Lease Rate
$14.76 /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%
$687,880
Cap Rate 7%
$491,343
Cap Rate 9%
$382,156
Alternative Uses
Best Use
Office B
$491.3K
$429.9K – $573.2K
NOI $34,394 @ 7.0% cap · market cap 5.06%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$656.2K
$574.2K – $765.6K
NOI $45,934 @ 7.0% cap · market cap 6.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
800
Businesses Nearby
Explore this area
Business Placement
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Includes a lobby, private offices, open work area, and washer and dryer hookups.
Where is this office building located?
The property is located at 2623 Forest Chico, CA.
What is the asking price?
The asking price for this property is $679,900.
What are key features of this property?
This property features: 2004 construction; Originally configured as four separate units and later combined into one larger office space; Lobby and waiting area, private offices, and open work area
