Mixed-Use Commercial Building with
For Sale
$5,500,000
423 Valencia Street, San Francisco, CA 94103
Commercial Sale, San Francisco, CA
Property Size8,700 SF
Lot Size0.10 Acres
Price / SF$632.18
Days on Market127
Property Features for 423 Valencia Street
General Information
Property type
Commercial Sale
Property subtype
Retail
Bathrooms
3
Full bathrooms
3
Rooms
Bathroom 3, Bathroom 1, Bathroom 2
Parking
10
Security features
Security
Lot features
Sidewalk, B A R T Nearby, Sidewalk, B A R T Nearby
Directions
15 or 16th to Valencia
Subdivision
SF District 9
Standard status
Active
APN
3554058
Size
8,700 SF
Lot size
0.10 Acres
Utilities
Sewer type
Public Sewer
Water source
Public
Amenities
curbside parking
Building Details
Year built
1910
Floors in Building
2
Flooring type
Concrete
Building materials
Concrete
Roof type
Metal
Listing Agency:
Compass
(415) 660-9955
Listed By:
Burton Louie · License #01231888
(415) 794-4506
Added: May 13
Changed: Sep 14
Last Checked: Sep 16 at 6:06AM
MLS# 426139745
Copyright © 2026 San Francisco Association of REALTORS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This mixed-use commercial property at 423 Valencia Street contains 8,700 square feet of building space on a 0.0964-acre lot. Built in 1910, the structure features concrete construction, concrete flooring, a metal roof, three bathrooms, and connections to public water and public sewer. The scale and configuration support a range of commercial applications, including retail, showroom, creative office, gallery, design, and experiential space.
The property sits along Valencia Street in San Francisco's Mission area, with curbside parking and direct urban street access. Its setting places the building among restaurants, retailers, technology firms, and creative businesses, with pedestrian activity and visibility described along the corridor. The address is 423 Valencia Street, San Francisco, CA 94103.
The property sits along Valencia Street in San Francisco's Mission area, with curbside parking and direct urban street access. Its setting places the building among restaurants, retailers, technology firms, and creative businesses, with pedestrian activity and visibility described along the corridor. The address is 423 Valencia Street, San Francisco, CA 94103.
Key Highlights
- 8,700 SF mixed‑use commercial building on a 0.0964‑acre lot
- Curbside parking along Valencia Street
- Concrete construction with concrete flooring and a metal roof
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
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
8,631
Businesses Nearby
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in San Francisco, CA
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Flexible urban commercial space with concrete construction, public utilities, and curbside parking along Valencia Street.
Where is this mixed-use property 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: 8,700 SF mixed‑use commercial building on a 0.0964‑acre lot; Curbside parking along Valencia Street; Concrete construction with concrete flooring and a metal roof
