Two-Unit Medical Office
For Sale
$749,000
301-2039 Forest Ave, San Jose, CA 95128
The combined layout includes exam rooms, offices, reception, waiting, and patient support areas.
Property Size2,054 SF
Price / SF$364.65
Days on Market21
Property Features for 301-2039 Forest Ave
General Information
Standard status
Active
Size
2,054 SF
Additional Details
Floor
3
HOA Fee
$1,050
Highway Access
Yes
Building Details
Buildings
1
Stories
3
Tenancy
Single
Owner Occupied
Yes
Listing Agency:
Real Estate 38
(408) 515-1613
Listed By:
Zaid Hanna
(408) 461-9008
Source:
Exprealty
Added: Sep 10
Changed: Sep 28
Last Checked: Sep 30 at 2:32PM
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 Real Estate 38
Investment Insights
Based on property information with market context.
Two condominium units on the top floor are configured as a single medical office, with no dividing walls. The combined space contains a lobby and waiting area, four exam rooms, two offices, reception, a utility room, a kitchen, storage, and two bathrooms, one with a shower. The sale includes both units, measuring 1,002 square feet and 1,052 square feet, respectively; the first unit has a 1,307-square-foot lot area.
The property is near O’Connor Hospital, Santana Row, Valley Fair, and major highways. The units are available at close of escrow.
The property is near O’Connor Hospital, Santana Row, Valley Fair, and major highways. The units are available at close of escrow.
Key Highlights
- Two medical office condominium units sold together and arranged as one office
- Unit 301 measures 1,002 square feet; unit 302 measures 1,052 square feet
- Four exam rooms and two private offices
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
$34,384
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
4.59%
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%
$687,680
$687.7K
Cap Rate 7%
$491,200
$491.2K
Cap Rate 9%
$382,044
$382.0K
Market Conditions
NOI Build-Up for 2,054 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
$61.6K $30.00/SF
− Vacancy
−$4.3K −$2.10/SF
EGI
$57.3K $27.90/SF
− OpEx
−$22.9K −$11.16/SF
NOI
$34.4K $16.74/SF
Area
San Jose, CA
Vacancy
7.00%
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%
$687,680
Cap Rate 7%
$491,200
Cap Rate 9%
$382,044
Alternative Uses
Best Use
Office B
$1.03M
$903.2K – $1.20M
NOI $72,258 @ 7.0% cap · market cap 9.65%
Second Best
Healthcare Medical
$491.2K
$429.8K – $573.1K
NOI $34,384 @ 7.0% cap · market cap 4.59%
Theoretical Best
Office A
$1.24M
$1.09M – $1.45M
NOI $86,833 @ 7.0% cap · market cap 11.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,682
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95128, CA
34,776
Population
15,193
Households
2.3
Avg Household Size
38
Median Age
52%
College-Educated
90%
High-School Grad
3.9 sq mi
ZIP Area
8,917
Density / Sq Mi
$122,647
Median Household Income
$71,504
Median Earnings
$2,505
Median Rent
$1,214,500
Median Home Value
Market
Vacancy Rate% for Office in San Jose, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - The combined layout includes exam rooms, offices, reception, waiting, and patient support areas.
Where is this medical office space located?
The property is located at 301-2039 Forest Ave San Jose, CA.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: Two medical office condominium units sold together and arranged as one office; Unit 301 measures 1,002 square feet; unit 302 measures 1,052 square feet; Four exam rooms and two private offices
