Multi-Tenant Office Building in
For Sale
$750,000
3978 Railroad Ave, Pittsburg, CA 94565
Multi-tenant office building with income potential in Pittsburg, California.
Property Size3,200 SF
Price / SF$234.38
Days on Market351
Property Features for 3978 Railroad Ave
General Information
Standard status
Active
Size
3,200 SF
Property subtype
Commercial
Amenities
Common Garage
Fenced Yard
Building Details
Year Built
1976
Listing Agency:
KINETIC REAL ESTATE
(925) 849-4955
Listed By:
LUIS VELASCO · License #01931986
Source:
Corcoran
Added: Sep 6, 2025
Changed: Aug 16
Last Checked: Aug 21 at 8:25AM
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.
Located in the heart of Pittsburg, 3978 Railroad Avenue presents an opportunity for either an owner-user or investment. This well-maintained multi-tenant office building has a total area of approximately 3,200 square feet and is divided into three separate units. This configuration offers income stability alongside potential leasing upside. Currently, two units are occupied by established tenants, providing consistent rental income. One unit is vacant and equipped as a barber shop, making it suitable for immediate lease-up or for an owner-user. The building's flexible layout and zoning accommodate various professional service, retail service, or office uses. The property includes a parking lot with 17 parking stalls.
Key Highlights
- Multi‑tenant office building with income from established tenants.
- Vacant unit built out as a barber shop, ideal for immediate lease‑up or owner‑user.
- Flexible layout and zoning supports various professional, retail, or office uses.
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
7.71%
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 7.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.21M
$1.06M – $1.41M
NOI $84,672 @ 7.0% cap · market cap 11.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
598
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 - Multi-tenant office building with income potential in Pittsburg, California.
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 $750,000.
What are key features of this property?
This property features: Multi‑tenant office building with income from established tenants.; Vacant unit built out as a barber shop, ideal for immediate lease‑up or owner‑user.; Flexible layout and zoning supports various professional, retail, or office uses.
