Multi-Tenant Office
For Sale
$725,000
3978 Railroad Ave, Pittsburg, CA 94565
Three suites offer separate entrances, including an updated vacant space alongside two occupied units.
Property Size3,200 SF
Price / SF$226.56
Days on Market8
Property Features for 3978 Railroad Ave
General Information
Standard status
Active
Size
3,200 SF
Total Parking Spaces
17
Property subtype
Commercial
Additional Details
Office Units
3
Building Details
Year Built
1976
Buildings
1
Building Size
3,200 SF
Tenancy
Multi
Listing Agency:
Kinetic Real Estate
(925) 577-6038
Listed By:
Luis Velasco · License #01931986
(925) 577-6038
Source:
Elliman
Added: Aug 15
Changed: Aug 16
Last Checked: Aug 21 at 11:36AM
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 Kinetic Real Estate
Investment Insights
Based on property information with market context.
Built in 1976, this approximately 3,200 SF office property is divided into three individually accessed units. Two suites are occupied, while the third is vacant and updated with an open reception area and private offices. The layout can accommodate professional services, office operations, or retail service uses, including salon and barber applications.
The building includes a 17-stall parking lot and sits along a primary traffic artery in Pittsburg with high daily traffic counts. Its multi-suite configuration supports both business occupancy and continued leasing of separate spaces, with existing tenants already in place and one unit available for immediate use.
The building includes a 17-stall parking lot and sits along a primary traffic artery in Pittsburg with high daily traffic counts. Its multi-suite configuration supports both business occupancy and continued leasing of separate spaces, with existing tenants already in place and one unit available for immediate use.
Key Highlights
- Approximately 3,200 +/- SF multi‑tenant office building
- Three separate units, each with its own entrance
- Two units occupied; one updated unit is vacant
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
$57,859
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
7.98%
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%
$1,157,180
$1.2M
Cap Rate 7%
$826,557
$826.6K
Cap Rate 9%
$642,878
$642.9K
Market Conditions
NOI Build-Up for 3,200 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
$94.1K $29.40/SF
− Vacancy
−$16.9K −$5.29/SF
EGI
$77.1K $24.11/SF
− OpEx
−$19.3K −$6.03/SF
NOI
$57.9K $18.08/SF
Area
Contra Costa County, CA
Vacancy
18.00%
Lease Rate
$29.40 /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%
$1,157,180
Cap Rate 7%
$826,557
Cap Rate 9%
$642,878
Alternative Uses
Best Use
Office B
$826.6K
$723.2K – $964.3K
NOI $57,859 @ 7.0% cap · market cap 7.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.21M
$1.06M – $1.41M
NOI $84,672 @ 7.0% cap · market cap 11.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
454
Businesses Nearby
Explore this area
Business Placement
Demographics for 94565, CA
100,341
Population
31,173
Households
3.2
Avg Household Size
35
Median Age
22%
College-Educated
78%
High-School Grad
45.3 sq mi
ZIP Area
2,215
Density / Sq Mi
$95,035
Median Household Income
$44,149
Median Earnings
$2,145
Median Rent
$563,300
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?
Office building - Three suites offer separate entrances, including an updated vacant space alongside two occupied units.
Where is this office building located?
The property is located at 3978 Railroad Ave Pittsburg, CA.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: Approximately 3,200 +/- SF multi‑tenant office building; Three separate units, each with its own entrance; Two units occupied; one updated unit is vacant
