Industrial Building with In-Place
New
For Sale
Contact for pricing
323 Canal Street, South San Francisco, CA 94080
Leased industrial property in South San Francisco with an existing five-year lease term.
Property Size11,000 SF
Price / SF$863.64
Days on Market6
Property Features for 323 Canal Street
General Information
Standard status
Active
Size
11,000 SF
Property subtype
INDUSTRIAL
Net Operating Income
$360,000
Additional Details
Cap Rate
3.8%
Building Details
Building Size
11,000 SF
Listing Agency:
HC&M Commercial Properties
(415) 308-4400
Listed By:
Nelson Knuth
(415) 308-4400
Source:
Moodyscre
Added: Aug 5
Changed: Aug 9
Last Checked: Aug 10 at 10:38AM
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 HC&M Commercial Properties
Investment Insights
Based on property information with market context.
This 11,000-square-foot industrial property is occupied under a five-year lease. The current agreement does not include an option to renew, providing a defined lease term for evaluation.
Located in South San Francisco, the property offers an existing industrial occupancy and an in-place contractual income stream. The asset is classified as an industrial property and is offered for sale.
Located in South San Francisco, the property offers an existing industrial occupancy and an in-place contractual income stream. The asset is classified as an industrial property and is offered for sale.
Key Highlights
- 11,000 sqft industrial building
- Existing tenant lease with a 5 year term
- No option to renew in the current lease
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
$503,687
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
5.30%
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%
$10,073,740
$10.1M
Cap Rate 7%
$7,195,529
$7.2M
Cap Rate 9%
$5,596,522
$5.6M
Market Conditions
NOI Build-Up for 11,000 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
$755.0K $68.64/SF
− Vacancy
−$35.5K −$3.23/SF
EGI
$719.6K $65.41/SF
− OpEx
−$215.9K −$19.62/SF
NOI
$503.7K $45.79/SF
Area
San Mateo County, CA
Vacancy
4.70%
Lease Rate
$68.64 /SF/Yr
Expense Ratio
30.00%
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%
$10,073,740
Cap Rate 7%
$7,195,529
Cap Rate 9%
$5,596,522
Alternative Uses
Best Use
Industrial
$7.20M
$6.30M – $8.39M
NOI $503,687 @ 7.0% cap · market cap 5.30%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$8.74M
$7.65M – $10.19M
NOI $611,620 @ 7.0% cap · market cap 6.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,392
Businesses Nearby
Explore this area
Business Placement
Demographics for 94080, CA
66,592
Population
23,364
Households
2.9
Avg Household Size
40
Median Age
40%
College-Educated
86%
High-School Grad
10.2 sq mi
ZIP Area
6,529
Density / Sq Mi
$135,966
Median Household Income
$61,138
Median Earnings
$2,840
Median Rent
$1,159,500
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - Leased industrial property in South San Francisco with an existing five-year lease term.
Where is this industrial property located?
The property is located at 323 Canal Street South San Francisco, CA.
What is the asking price?
The asking price for this property is $9,500,000.
What are key features of this property?
This property features: 11,000 sqft industrial building; Existing tenant lease with a 5 year term; No option to renew in the current lease
