Third-Floor Medical Office
For Sale
$749,000
304-2039 Forest Ave, San Jose, CA 95128
Third-floor medical/professional suite with reception, offices, four plumbed exam rooms, and a restroom near O'Connor Hospital.
Property Size1,600 SF
Price / SF$468.13
Days on Market185
Property Features for 304-2039 Forest Ave
General Information
Standard status
Active
Size
1,600 SF
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$10,811
Listing Agency:
coldwell banker realty
(408) 621-7473
Listed By:
Chris Shaheen · License #01421630
(408) 621-7473
Source:
Exprealty
Added: Feb 25
Changed: Aug 20
Last Checked: Aug 28 at 2:34PM
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 coldwell banker realty
Investment Insights
Based on property information with market context.
This offering is an approximately 1,600 square foot medical/professional office condominium located on the third floor. The suite includes a front reception area with a waiting area, two offices, four plumbed exam rooms, and a restroom. The layout is designed to support patient-facing flow while also providing dedicated office space.
Situated on Forest Avenue, the property is described as being within walking distance to O'Connor Hospital. The remarks also note easy access to Highways 280 and 880, as well as Santana Row and Valley Fair, supporting convenient regional connectivity.
For medical and professional users, the built-in configuration is particularly well-suited to practices that require multiple exam rooms and a reception/waiting setup. This condominium format also provides an ownership path for a practice or related professional group seeking a dedicated third-floor suite in a convenient, healthcare-oriented setting.
Situated on Forest Avenue, the property is described as being within walking distance to O'Connor Hospital. The remarks also note easy access to Highways 280 and 880, as well as Santana Row and Valley Fair, supporting convenient regional connectivity.
For medical and professional users, the built-in configuration is particularly well-suited to practices that require multiple exam rooms and a reception/waiting setup. This condominium format also provides an ownership path for a practice or related professional group seeking a dedicated third-floor suite in a convenient, healthcare-oriented setting.
Key Highlights
- Approximately 1,600 SF medical/professional office condo suite on the third floor
- Front reception with waiting area
- Includes two 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
$56,287
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
7.51%
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%
$1,125,740
$1.1M
Cap Rate 7%
$804,100
$804.1K
Cap Rate 9%
$625,411
$625.4K
Market Conditions
NOI Build-Up for 1,600 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
$89.7K $56.04/SF
− Vacancy
−$14.6K −$9.13/SF
EGI
$75.0K $46.91/SF
− OpEx
−$18.8K −$11.73/SF
NOI
$56.3K $35.18/SF
Area
San Jose, CA
Vacancy
16.30%
Lease Rate
$56.04 /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%
$1,125,740
Cap Rate 7%
$804,100
Cap Rate 9%
$625,411
Alternative Uses
Best Use
Office B
$804.1K
$703.6K – $938.1K
NOI $56,287 @ 7.0% cap · market cap 7.51%
Second Best
Healthcare Medical
$382.6K
$334.8K – $446.4K
NOI $26,784 @ 7.0% cap · market cap 3.58%
Theoretical Best
Office A
$966.3K
$845.5K – $1.13M
NOI $67,640 @ 7.0% cap · market cap 9.03%
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
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 - Third-floor medical/professional suite with reception, offices, four plumbed exam rooms, and a restroom near O'Connor Hospital.
Where is this medical office space located?
The property is located at 304-2039 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: Approximately 1,600 SF medical/professional office condo suite on the third floor; Front reception with waiting area; Includes two offices
