Office Building with Private
For Sale
$1,999,999
422426 Peninsula Avenue, San Mateo, CA 94401
Professional layout includes reception, conference, break-room, restroom, and outdoor patio areas.
Property Size3,456 SF
Price / SF$578.70
Days on Market296
Property Features for 422426 Peninsula Avenue
General Information
Standard status
Active
Size
3,456 SF
Property subtype
Multi Family
Additional Details
Public Transit
Yes
Taxes and HOA fees
Annual Taxes
$23,848
Building Details
Year Built
1954
Listing Agency:
Compass
(650) 793-0541
Listed By:
Alexander Kent · License #01718732
(650) 793-0541
Source:
Exitrealty
Added: Nov 8, 2025
Changed: Aug 29
Last Checked: Aug 30 at 4:39PM
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 Compass
Investment Insights
Based on property information with market context.
Built in 1954, this 3,456-square-foot office property is arranged with a reception area, 9 private offices, 1 large conference room, 3 restrooms with 2 fixtures each, a break room, and an outdoor patio. The existing configuration supports administrative, executive, and professional office functions, along with other uses identified in the zoning summary.
The property is located at 422426 Peninsula Avenue in San Mateo, approximately 1/2 mile from Burlingame Caltrain and within walking distance of the station. Zoning provisions identify potential uses including schools and day care, medical and laboratory operations, restaurants, retail and service businesses, financial and business offices, health and recreation, warehousing, storage, and distribution. Residential R3 multi-family use and several special uses are also listed, subject to applicable requirements.
The property is located at 422426 Peninsula Avenue in San Mateo, approximately 1/2 mile from Burlingame Caltrain and within walking distance of the station. Zoning provisions identify potential uses including schools and day care, medical and laboratory operations, restaurants, retail and service businesses, financial and business offices, health and recreation, warehousing, storage, and distribution. Residential R3 multi-family use and several special uses are also listed, subject to applicable requirements.
Key Highlights
- 3,456 SF office building constructed in 1954
- 9 private offices and 1 large conference room
- Reception area, break room, 3 restrooms, and outdoor patio
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
$67,147
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
3.36%
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%
$1,342,940
$1.3M
Cap Rate 7%
$959,243
$959.2K
Cap Rate 9%
$746,078
$746.1K
Market Conditions
NOI Build-Up for 3,456 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
$116.1K $33.60/SF
− Vacancy
−$26.6K −$7.69/SF
EGI
$89.5K $25.91/SF
− OpEx
−$22.4K −$6.48/SF
NOI
$67.1K $19.43/SF
Area
San Mateo, CA
Vacancy
22.90%
Lease Rate
$33.60 /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%
$1,342,940
Cap Rate 7%
$959,243
Cap Rate 9%
$746,078
Alternative Uses
Best Use
Office B
$959.2K
$839.3K – $1.12M
NOI $67,147 @ 7.0% cap · market cap 3.36%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.37M
$1.20M – $1.59M
NOI $95,684 @ 7.0% cap · market cap 4.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,112
Businesses Nearby
Explore this area
Business Placement
Demographics for 94401, CA
35,249
Population
13,798
Households
2.6
Avg Household Size
37
Median Age
45%
College-Educated
85%
High-School Grad
3.1 sq mi
ZIP Area
11,371
Density / Sq Mi
$121,258
Median Household Income
$57,724
Median Earnings
$2,713
Median Rent
$1,123,300
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 - Professional layout includes reception, conference, break-room, restroom, and outdoor patio areas.
Where is this office building located?
The property is located at 422426 Peninsula Avenue San Mateo, CA.
What is the asking price?
The asking price for this property is $1,999,999.
What are key features of this property?
This property features: 3,456 SF office building constructed in 1954; 9 private offices and 1 large conference room; Reception area, break room, 3 restrooms, and outdoor patio
