Oakland Medical Office Building For
For Sale
$2,500,000
2939 Summit St, Oakland, CA 94609
Medical office building with parking lot, development potential in Oakland.
Property Size4,770 SF
Lot Size0.21 Acres
Price / SF$524.11
Days on Market95
Property Features for 2939 Summit St
General Information
Standard status
Active
Size
4,770 SF
Lot size
0.21 Acres
Property subtype
Office
Listing Agency:
Oakland
(510) 433-5815
Listed By:
Aileen Dolby · License #CA-00949630
(510) 433-5815
Source:
Colliers
Added: May 21
Changed: Aug 23
Last Checked: Aug 22 at 5:35PM
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 Oakland
Investment Insights
Based on property information with market context.
The property at 2939 Summit Street in Oakland, CA, features a commercial medical office building of approximately 4,770 square feet, constructed in 1969, along with a perpendicular surface parking lot of approximately 6,098 square feet. The total land area for this "L" shaped assembly is 9,147 square feet. Zoned CC-2, the site permits medical uses as well as residential development. This property presents a multifaceted opportunity for an owner/user interested in remodeling the existing structure for their own use or pursuing a ground-up development. The East Bay's economic diversity reduces its reliance on any single industry for economic growth. The East Bay is home to the Port of Oakland, a major economic force and one of the busiest ports in the U.S. The East Bay also hosts major operations for a diverse set of large corporations, including major healthcare players such as, Kaiser Permanente and Sutter Health. Bay Area multi-family development has cooled down after a boom pre-pandemic because of interest rates. Developers are still searching for their project for the next 'cycle'; however, cost of land is depressed from the high points of a few years ago.
Key Highlights
- Zoning allows for both medical and residential uses (CC‑2).
- Includes a 4,770 sq ft commercial medical office building.
- Features a separate 6,098 sq ft surface parking lot.
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
$78,991
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
3.16%
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%
$1,579,820
$1.6M
Cap Rate 7%
$1,128,443
$1.1M
Cap Rate 9%
$877,678
$877.7K
Market Conditions
NOI Build-Up for 4,770 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
$143.1K $30.00/SF
− Vacancy
−$11.4K −$2.40/SF
EGI
$131.7K $27.60/SF
− OpEx
−$52.7K −$11.04/SF
NOI
$79.0K $16.56/SF
Area
Oakland, CA
Vacancy
8.00%
Lease Rate
$30.00 /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%
$1,579,820
Cap Rate 7%
$1,128,443
Cap Rate 9%
$877,678
Alternative Uses
Best Use
Healthcare Medical
$1.13M
$987.4K – $1.32M
NOI $78,991 @ 7.0% cap · market cap 3.16%
Second Best
Office B
$913.6K
$799.4K – $1.07M
NOI $63,949 @ 7.0% cap · market cap 2.56%
Theoretical Best
Multifamily LT 5
$1.56M
$1.37M – $1.82M
NOI $109,318 @ 7.0% cap · market cap 4.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
6,851
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 94609, CA
23,578
Population
11,915
Households
2
Avg Household Size
36
Median Age
62%
College-Educated
95%
High-School Grad
1.7 sq mi
ZIP Area
13,869
Density / Sq Mi
$106,698
Median Household Income
$69,221
Median Earnings
$2,116
Median Rent
$1,147,900
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?
Medical Office Space - Medical office building with parking lot, development potential in Oakland.
Where is this medical office space located?
The property is located at 2939 Summit St Oakland, CA.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Zoning allows for both medical and residential uses (CC‑2).; Includes a **4,770 sq ft commercial medical office building**.; Features a separate 6,098 sq ft surface parking lot.
