Mixed-Use Commercial Property with
For Sale
$5,500,000
423 Valencia Street, San Francisco, CA 94103
Flexible showroom, retail, and office space with curbside parking on a substantial lot in San Francisco’s Valencia Corridor.
Property Size8,700 SF
Lot Size0.23 Acres
Price / SF$632.18
Days on Market69
Property Features for 423 Valencia Street
General Information
Standard status
Active
Size
8,700 SF
Lot size
0.23 Acres
Property subtype
Commercial
Amenities
Metal Roof
Sidewalk
BART Nearby
Concrete Slab Flooring
Enclosed
Parking
Private
Building Details
Year Built
1910
Listing Agency:
COMPASS
(415) 660-9955
Listed By:
BURTON LOUIE · License #01231888
Source:
Corcoran
Added: Jun 16
Changed: Aug 22
Last Checked: Aug 23 at 6:39AM
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.
423-435 Valencia Street is a mixed-use commercial property offering a versatile building footprint of over 8,000 square feet within an approximately 10,000 square foot lot. The layout is designed for multiple commercial concepts, including retail, showroom, creative office, gallery, design, and experiential uses, making it well-suited for owner-users and investors seeking flexibility.
The property is positioned in the heart of San Francisco’s Valencia Corridor, surrounded by restaurants, retailers, technology firms, and creative businesses. A notable convenience is its curbside parking and easy accessibility, a feature highlighted as especially rare along Valencia Street, supporting customer and client traffic as well as day-to-day deliveries.
From a tenant or operator standpoint, the combination of flexible interior space and on-street parking can simplify access for staffing, clients, and product movement. For buyers, the asset’s adaptable configuration supports a range of strategies in one location, with substantial lot size that provides a sense of scale uncommon in this highly built-out commercial corridor.
The property is positioned in the heart of San Francisco’s Valencia Corridor, surrounded by restaurants, retailers, technology firms, and creative businesses. A notable convenience is its curbside parking and easy accessibility, a feature highlighted as especially rare along Valencia Street, supporting customer and client traffic as well as day-to-day deliveries.
From a tenant or operator standpoint, the combination of flexible interior space and on-street parking can simplify access for staffing, clients, and product movement. For buyers, the asset’s adaptable configuration supports a range of strategies in one location, with substantial lot size that provides a sense of scale uncommon in this highly built-out commercial corridor.
Key Highlights
- Year built: 1910
- Approximately 10,000 SF lot with over 8,000 SF of versatile building space
- Flexible space for retail, showroom, creative office, gallery, design, or experiential commercial use
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
$214,371
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
3.90%
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%
$4,287,420
$4.3M
Cap Rate 7%
$3,062,443
$3.1M
Cap Rate 9%
$2,381,900
$2.4M
Market Conditions
NOI Build-Up for 8,700 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
$383.1K $44.04/SF
− Vacancy
−$97.3K −$11.19/SF
EGI
$285.8K $32.85/SF
− OpEx
−$71.5K −$8.21/SF
NOI
$214.4K $24.64/SF
Area
San Francisco, CA
Vacancy
25.40%
Lease Rate
$44.04 /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%
$4,287,420
Cap Rate 7%
$3,062,443
Cap Rate 9%
$2,381,900
Alternative Uses
Best Use
Retail
$39.66M
$34.71M – $46.27M
NOI $2,776,401 @ 7.0% cap · market cap 50.48%
Second Best
Office B
$3.06M
$2.68M – $3.57M
NOI $214,371 @ 7.0% cap · market cap 3.90%
Theoretical Best
Specialty Retail
$42.50M
$37.18M – $49.58M
NOI $2,974,715 @ 7.0% cap · market cap 54.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
8,631
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 94103, CA
37,843
Population
20,920
Households
1.8
Avg Household Size
37
Median Age
56%
College-Educated
88%
High-School Grad
1.4 sq mi
ZIP Area
27,031
Density / Sq Mi
$122,339
Median Household Income
$83,348
Median Earnings
$2,146
Median Rent
$1,057,600
Median Home Value
Market
Vacancy Rate% for Office in San Francisco, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Showroom - Flexible showroom, retail, and office space with curbside parking on a substantial lot in San Francisco’s Valencia Corridor.
Where is this showroom located?
The property is located at 423 Valencia Street San Francisco, CA.
What is the asking price?
The asking price for this property is $5,500,000.
What are key features of this property?
This property features: Year built: 1910; Approximately 10,000 SF lot with over 8,000 SF of versatile building space; Flexible space for retail, showroom, creative office, gallery, design, or experiential commercial use
