Building Details

Buildings 1

Stories 2

Building Size 11,378 SF

Listing Agency: CBRE | San Francisco b***@cbre.com Show Phone

Listed By: Robert McSweeney · License #00934240 Show Phone

Source: Cbre

Added: Jun 2 Changed: Aug 31 Last Checked: Aug 31 at 12:04AM

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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 Francisco

Investment Insights

Based on property information with market context.

This flex space includes 11,378 square feet of building area configured for office and warehouse use across two stories. The improvements occupy a 23,871-square-foot parcel at 350 Hatch Drive in Foster City, California, providing a combined office-and-industrial property profile within an established commercial setting.

Key Highlights

• 11,378 square feet of building area
• 23,871‑square‑foot parcel
• Two‑story office and warehouse configuration

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

$364,414

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

9.12%

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%

$7,288,280 $7.3M

Cap Rate 7%

$5,205,914 $5.2M

Cap Rate 9%

$4,049,044 $4.0M

Market Conditions

NOI Build-Up for 11,378 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

$625.3K $54.96/SF

− Vacancy

−$139.4K −$12.26/SF

EGI

$485.9K $42.70/SF

− OpEx

−$121.5K −$10.68/SF

NOI

$364.4K $32.03/SF

Area

San Mateo County, CA

Vacancy

22.30%

Lease Rate

$54.96 /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%

$7,288,280

Cap Rate 7%

$5,205,914

Cap Rate 9%

$4,049,044

Alternative Uses

Best Use

Warehouse

$9.04M

$7.91M – $10.54M (±1% cap)

NOI $632,638 @ 7.0% cap · market cap 15.84%

Second Best

Industrial

$7.44M

$6.51M – $8.68M (±1% cap)

NOI $520,996 @ 7.0% cap · market cap 13.04%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Flex space

Suggested Use

Top Pick Auto Parts Store Furniture & Home Goods Electrical Service Skin Care Clinic Carpet & Flooring Store (Bike/Boat/Book/etc) Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

1,124

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 94404, CA

37,323

Population

15,166

Households

2.5

Avg Household Size

40

Median Age

75%

College-Educated

96%

High-School Grad

4.3 sq mi

ZIP Area

8,680

Density / Sq Mi

$182,417

Median Household Income

$120,993

Median Earnings

$3,501

Median Rent

$1,682,700

Median Home Value

Market

Vacancy Rate% for Office in West region

11% 2019

14.1% 2020

15.5% 2021

17.2% 2022

19.9% 2023

21% 2024

20.8% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Flex space - Office and warehouse functions are arranged across two levels.

Where is this flex space located?

The property is located at 350 Hatch Drive Foster City, CA.

What is the asking price?

The asking price for this property is $3,993,855.

What are key features of this property?

This property features: 11,378 square feet of building area; 23,871‑square‑foot parcel; Two‑story office and warehouse configuration