Downtown Retail Near San Jose
For Sale
$745,000
420 E Santa Clara St, San Jose, CA 95113
Retail space with high foot traffic near San Jose State.
Property Size2,430 SF
Price / SF$306.58
Days on Market220
Property Features for 420 E Santa Clara St
General Information
Standard status
Active
Size
2,430 SF
Property subtype
Commercial/Industrial
Building Details
Year Built
1920
Listing Agency:
Independent Rl Est Brokers
(510) 276-7900
Listed By:
Gary Izard · License #01359320
(925) 309-9144
Source:
Exitrealty
Added: Feb 4
Changed: Sep 4
Last Checked: Sep 12 at 6:25AM
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 Independent Rl Est Brokers
Investment Insights
Based on property information with market context.
This retail space is situated in a downtown location with significant foot and car traffic. Its location is near the East Campus of San Jose State University, positioned one block behind the campus. The property benefits from its central location among Highways 101, 280, and 87. Mass public transportation options are readily available, including Valley Transit Authority (VTA) bus lines directly in front of the location and Caltrain nearby. San Jose International Airport is also within close proximity. The location has a bike score of 87, indicating it is very bikeable, and a walk score of 81, signifying it is very walkable. The transit score is 61, reflecting good transit options.
Key Highlights
- High foot and car traffic in a downtown retail location.
- Excellent bike and walk scores of 87 and 81 respectively.
- Convenient access to Highways 101, 280, and 87.
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
$65,638
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
8.81%
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%
$1,312,760
$1.3M
Cap Rate 7%
$937,686
$937.7K
Cap Rate 9%
$729,311
$729.3K
Market Conditions
NOI Build-Up for 2,430 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
$98.3K $40.44/SF
− Vacancy
−$4.5K −$1.85/SF
EGI
$93.8K $38.59/SF
− OpEx
−$28.1K −$11.58/SF
NOI
$65.6K $27.01/SF
Area
San Jose, CA
Vacancy
4.58%
Lease Rate
$40.44 /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%
$1,312,760
Cap Rate 7%
$937,686
Cap Rate 9%
$729,311
Alternative Uses
Best Use
Retail
$937.7K
$820.5K – $1.09M
NOI $65,638 @ 7.0% cap · market cap 8.81%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.47M
$1.28M – $1.71M
NOI $102,729 @ 7.0% cap · market cap 13.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
4,544
Businesses Nearby
107k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 45%
Shops & Services 32%
Dining 18%
Electronics 5%
Cardenas Market
Groceries
26,807 visits/mo
0.5 miles
Grocery Outlet Bargain Market
Groceries
21,340 visits/mo
0.2 miles
Rotten Robbie
Shops & Services
12,621 visits/mo
0.4 miles
Lee's Sandwiches
Dining
9,918 visits/mo
0.2 miles
7-Eleven
Shops & Services
7,347 visits/mo
0.4 miles
Demographics for 95113, CA
2,658
Population
1,850
Households
1.4
Avg Household Size
35
Median Age
67%
College-Educated
88%
High-School Grad
0.3 sq mi
ZIP Area
8,860
Density / Sq Mi
$140,938
Median Household Income
$101,706
Median Earnings
$2,914
Median Rent
$953,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in San Jose, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail space with high foot traffic near San Jose State.
Where is this retail space located?
The property is located at 420 E Santa Clara St San Jose, CA.
What is the asking price?
The asking price for this property is $745,000.
What are key features of this property?
This property features: High foot and car traffic in a downtown retail location.; Excellent bike and walk scores of 87 and 81 respectively.; Convenient access to Highways 101, 280, and 87.
