Transit-Adjacent Commercial
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2866 Commercial St., San Diego, CA 92113
Corner development site with multifamily zoning, trolley access, and an existing storage building.
Property Size9,936 SF
Price / SF$221.42
Days on Market7
Property Features for 2866 Commercial St.
General Information
Standard status
Active
Size
9,936 SF
Property subtype
Industrial, Multifamily, Land
Building Details
Units
1
Listing Agency:
Kidder Mathews San Diego
(619) 884-5456
Listed By:
Ray Adams · License #CA 01298909
Source:
Crexi
Added: Aug 5
Changed: Aug 9
Last Checked: Aug 10 at 1:37PM
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 Kidder Mathews San Diego
Investment Insights
Based on property information with market context.
This approximately 20,034-square-foot commercial land parcel includes an existing building of about 9,936 square feet currently used for storage, along with additional storage yard area. The site is zoned for high-density multifamily development with a 6.5 FAR and is designated as a Transit Priority Area. It also falls within a Qualified Opportunity Zone.
The corner property is positioned at Commercial Street and 29th Street in San Diego, with approximately 150 feet of frontage along Commercial Street, additional access from 29th Street, and rear alley access. The site is on the trolley line and is located near employment centers.
The corner property is positioned at Commercial Street and 29th Street in San Diego, with approximately 150 feet of frontage along Commercial Street, additional access from 29th Street, and rear alley access. The site is on the trolley line and is located near employment centers.
Key Highlights
- Approximately 20,034 sf development site
- High‑density multifamily zoning with 6.5 FAR
- Existing building approximately 9,936 sf, currently used for storage
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
$142,687
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
6.49%
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%
$2,853,740
$2.9M
Cap Rate 7%
$2,038,386
$2.0M
Cap Rate 9%
$1,585,411
$1.6M
Market Conditions
NOI Build-Up for 9,936 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
$178.8K $18.00/SF
− Vacancy
−$11.0K −$1.11/SF
EGI
$167.9K $16.89/SF
− OpEx
−$25.2K −$2.53/SF
NOI
$142.7K $14.36/SF
Area
San Diego, CA
Vacancy
6.14%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
15.00%
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%
$2,853,740
Cap Rate 7%
$2,038,386
Cap Rate 9%
$1,585,411
Alternative Uses
Best Use
Warehouse
$2.04M
$1.78M – $2.38M
NOI $142,687 @ 7.0% cap · market cap 6.49%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.92M
$3.43M – $4.58M
NOI $274,711 @ 7.0% cap · market cap 12.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,493
Businesses Nearby
Explore this area
Business Placement
Demographics for 92113, CA
50,457
Population
14,443
Households
3.5
Avg Household Size
32
Median Age
11%
College-Educated
69%
High-School Grad
4.5 sq mi
ZIP Area
11,213
Density / Sq Mi
$59,177
Median Household Income
$31,099
Median Earnings
$1,608
Median Rent
$559,100
Median Home Value
Market
Vacancy Rate% for Industrial in San Diego, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Corner development site with multifamily zoning, trolley access, and an existing storage building.
Where is this commercial land located?
The property is located at 2866 Commercial St. San Diego, CA.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Approximately 20,034 sf development site; High‑density multifamily zoning with 6.5 FAR; Existing building approximately 9,936 sf, currently used for storage
