Warehouse with Secured
For Sale
Contact for pricing
2871 Monterey Hwy, San Jose, CA 95111
Functional warehouse with multiple ground-level access points, employee parking areas, and a fenced yard.
Property Size16,800 SF
Price / SF$309.52
Days on Market52
Property Features for 2871 Monterey Hwy
General Information
Standard status
Active
Size
16,800 SF
Property subtype
INDUSTRIAL
Site & Location
Fenced Yard
Yes
Outdoor Storage
Yes
Warehouse & Industrial
Clear Height
14 ft
Drive-In Doors
9
Listing Agency:
CBRE | San Jose
(408) 453-7400
Listed By:
Jim Kovaleski · License #00846878
(408) 453-7451
Source:
Moodyscre
Added: Jul 28
Changed: Sep 3
Last Checked: Sep 16 at 3:25PM
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 CBRE | San Jose
Investment Insights
Based on property information with market context.
This warehouse property contains approximately 16,800 square feet with 9 grade-level doors and approximately 14 feet of clear height. The configuration supports ground-level loading and warehouse operations, with employee parking areas included on site.
The property also features a fenced and secured yard, providing controlled outdoor space connected to the warehouse improvements.
The property also features a fenced and secured yard, providing controlled outdoor space connected to the warehouse improvements.
Key Highlights
- Approximately 16,800 SF warehouse
- 9 grade‑level doors
- Approximately 14’ clear height
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
$339,687
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
6.53%
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%
$6,793,740
$6.8M
Cap Rate 7%
$4,852,671
$4.9M
Cap Rate 9%
$3,774,300
$3.8M
Market Conditions
NOI Build-Up for 16,800 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
$433.4K $25.80/SF
− Vacancy
−$33.8K −$2.01/SF
EGI
$399.6K $23.79/SF
− OpEx
−$59.9K −$3.57/SF
NOI
$339.7K $20.22/SF
Area
ZIP 95111
Vacancy
7.80%
Lease Rate
$25.80 /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%
$6,793,740
Cap Rate 7%
$4,852,671
Cap Rate 9%
$3,774,300
Alternative Uses
Best Use
Warehouse
$4.85M
$4.25M – $5.66M
NOI $339,687 @ 7.0% cap · market cap 6.53%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.09M
$8.83M – $11.77M
NOI $706,005 @ 7.0% cap · market cap 13.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
14 ft
Clear height
9
Drive-in doors
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
800
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Functional warehouse with multiple ground-level access points, employee parking areas, and a fenced yard.
Where is this warehouse located?
The property is located at 2871 Monterey Hwy San Jose, CA.
What is the asking price?
The asking price for this property is $5,200,000.
What are key features of this property?
This property features: Approximately 16,800 SF warehouse; 9 grade‑level doors; Approximately 14’ clear height
