Kearny Mesa Office/Flex
For Sale
Contact for pricing
5205 Kearny Villa Way, San Diego, CA 92123
Two-story office/flex building in Kearny Mesa for sale.
Property Size26,666 SF
Lot Size0.83 Acres
Price / SF$275
Days on Market190
Property Features for 5205 Kearny Villa Way
General Information
Standard status
Active
Size
26,666 SF
Class
B
Lot size
0.83 Acres
Property subtype
Office, Industrial
Investment Type
Owner/User
Building Details
Tenancy
Multi
Listing Agency:
California Commercial Properties
Listed By:
Matthew Reynolds · License #02006453
Source:
Crexi
Added: Feb 5
Changed: Aug 14
Last Checked: Aug 14 at 7:24AM
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 California Commercial Properties
Investment Insights
Based on property information with market context.
Located in the heart of Kearny Mesa, this two-story office/flex building offers approximately 26,666 square feet of space on a 0.83-acre lot. The property is zoned IL-2-1, permitting a wide range of office, flex, and light industrial uses. The building comprises eleven individual suites, with multiple vacant units available for immediate owner/user occupancy. An existing tenancy occupies approximately 24,707 square feet, generating approximately $37,144 per month in rental income. Lease expirations are staggered, with the majority rolling in 2026, offering flexibility and potential upside. The entire second floor will be available November 1, 2026, presenting an opportunity for full or partial owner occupancy. The property includes mezzanine warehouse space with two roll-up doors, a mix of private offices, open bullpen areas, conference/training rooms, and flex/assembly space. There are 67 on-site parking spaces and a covered patio/break area. The building features central double-loaded corridors and perimeter window offices. It offers immediate access to SR-163 and SR-52. This property represents a strong owner/user with income or value-add investment opportunity in a core San Diego submarket.
Key Highlights
- Owner/User office–flex opportunity with multiple vacant units for immediate occupancy.
- In‑place tenancy generating approximately $37,144/month in rental income.
- IL‑2‑1 zoning allows for a wide range of office, flex, and light industrial uses.
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
$514,787
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
7.02%
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%
$10,295,740
$10.3M
Cap Rate 7%
$7,354,100
$7.4M
Cap Rate 9%
$5,719,856
$5.7M
Market Conditions
NOI Build-Up for 26,666 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
$800.0K $30.00/SF
− Vacancy
−$113.6K −$4.26/SF
EGI
$686.4K $25.74/SF
− OpEx
−$171.6K −$6.44/SF
NOI
$514.8K $19.31/SF
Area
San Diego, CA
Vacancy
14.20%
Lease Rate
$30.00 /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%
$10,295,740
Cap Rate 7%
$7,354,100
Cap Rate 9%
$5,719,856
Alternative Uses
Best Use
Office B
$7.35M
$6.43M – $8.58M
NOI $514,787 @ 7.0% cap · market cap 7.02%
Second Best
Flex RnD
$5.53M
$4.84M – $6.45M
NOI $386,870 @ 7.0% cap · market cap 5.28%
Theoretical Best
Specialty Retail
$10.53M
$9.22M – $12.29M
NOI $737,262 @ 7.0% cap · market cap 10.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,769
Businesses Nearby
Explore this area
Business Placement
Demographics for 92123, CA
30,937
Population
13,108
Households
2.4
Avg Household Size
34
Median Age
48%
College-Educated
93%
High-School Grad
8.6 sq mi
ZIP Area
3,597
Density / Sq Mi
$121,856
Median Household Income
$55,111
Median Earnings
$2,798
Median Rent
$799,600
Median Home Value
Market
Vacancy Rate% for Office in San Diego, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two-story office/flex building in Kearny Mesa for sale.
Where is this office building located?
The property is located at 5205 Kearny Villa Way San Diego, CA.
What is the asking price?
The asking price for this property is $7,333,150.
What are key features of this property?
This property features: Owner/User office–flex opportunity with multiple vacant units for immediate occupancy.; In‑place tenancy generating approximately $37,144/month in rental income.; IL‑2‑1 zoning allows for a wide range of office, flex, and light industrial uses.
