San Jose Commercial Building
For Sale
$6,900,000
Pending
480 N 1st St, San Jose, CA 95112
Commercial building near downtown San Jose, ideal for owner-user.
Property Size17,000 SF
Lot Size0.58 Acres
Days on Market151
Property Features for 480 N 1st St
General Information
Standard status
Pending
Size
17,000 SF
Lot size
0.58 Acres
Property subtype
Commercial
Building Details
Year Built
1957
Stories
2
Listing Agency:
Remax Capital
(650) 834-2323
Listed By:
Erik Winkler · License #00964405
(650) 834-2323
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 6:19AM
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 Remax Capital
Investment Insights
Based on property information with market context.
This commercial building, located close to downtown San Jose and adjacent to a VTA Light Rail stop, presents an opportunity for an owner-user. The building is suitable for medical offices or a school. Major updates were completed in 2016-17. The building is accessible and ADA compliant, featuring an elevator and a fire alarm system. It offers approximately 17,000 square feet of usable space.
Key Highlights
- Prime location near downtown San Jose and adjacent to a VTA Light Rail stop.
- Substantial space: Approximately 17,000 sq ft of usable area.
- Suitable for owner‑user, medical offices, or a school.
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
$598,045
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
8.67%
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%
$11,960,900
$12.0M
Cap Rate 7%
$8,543,500
$8.5M
Cap Rate 9%
$6,644,944
$6.6M
Market Conditions
NOI Build-Up for 17,000 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
$952.7K $56.04/SF
− Vacancy
−$155.3K −$9.13/SF
EGI
$797.4K $46.91/SF
− OpEx
−$199.3K −$11.73/SF
NOI
$598.0K $35.18/SF
Area
San Jose, CA
Vacancy
16.30%
Lease Rate
$56.04 /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%
$11,960,900
Cap Rate 7%
$8,543,500
Cap Rate 9%
$6,644,944
Alternative Uses
Best Use
Office B
$8.54M
$7.48M – $9.97M
NOI $598,045 @ 7.0% cap · market cap 8.67%
Second Best
Healthcare Medical
$4.07M
$3.56M – $4.74M
NOI $284,580 @ 7.0% cap · market cap 4.12%
Theoretical Best
Office A
$10.27M
$8.98M – $11.98M
NOI $718,677 @ 7.0% cap · market cap 10.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,841
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95112, CA
60,754
Population
22,969
Households
2.6
Avg Household Size
33
Median Age
39%
College-Educated
82%
High-School Grad
7.3 sq mi
ZIP Area
8,322
Density / Sq Mi
$89,649
Median Household Income
$45,690
Median Earnings
$2,095
Median Rent
$956,300
Median Home Value
Market
Vacancy Rate% for Office in San Jose, CA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Banfield Pet Hospital — 607 Coleman Ave, San Jose, CA 95110
- Ark Veterinary Care — 295 N 10th St, San Jose, CA 95112
- UNI Pet Clinic - San Jose — 595 N First St, San Jose, CA 95112
Frequently Asked Questions
What type of property is this?
Medical Office Space - Commercial building near downtown San Jose, ideal for owner-user.
Where is this medical office space located?
The property is located at 480 N 1st St San Jose, CA.
What is the asking price?
The asking price for this property is $6,900,000.
What are key features of this property?
This property features: Prime location near downtown San Jose and adjacent to a VTA Light Rail stop.; Substantial space: Approximately 17,000 sq ft of usable area.; Suitable for owner‑user, medical offices, or a school.
