Monterey Commercial Corridor
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527-539 Ramona Ave, Monterey, CA
Partially occupied commercial property in Monterey's commercial corridor.
Property Size16,563 SF
Lot Size0.68 Acres
Price / SF$222.79
Days on Market334
Property Features for 527-539 Ramona Ave
General Information
Standard status
Active
Size
16,563 SF
Lot size
0.68 Acres
Property subtype
FLEX_R_AND_D
Listing Agency:
Mahoney & Associates Commercial Real Estate
(831) 263-9513
Listed By:
David Baird · License #00533485
Source:
Moodyscre
Added: Sep 23, 2025
Changed: Aug 14
Last Checked: Aug 21 at 3:04PM
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 Mahoney & Associates Commercial Real Estate
Investment Insights
Based on property information with market context.
Located in the heart of Monterey’s commercial corridor, 527-539 Ramona Avenue presents an opportunity for investors and owner-users. The property is partially occupied, providing immediate income with the flexibility to occupy or lease the remaining space. Situated within the North Fremont Specific Plan area, the zoning accommodates a range of commercial uses, including retail, office, and service-oriented businesses. The site benefits from exposure off North Fremont Street, which experiences an average daily traffic flow of over 28,000 vehicles. The property is positioned for long-term value and strategic growth due to its proximity to Highway 1, national retailers, and ample on-site parking. The property size is 16563 square feet.
Key Highlights
- Rare opportunity for investors and/or owner‑users in the heart of Monterey’s commercial corridor.
- Partially occupied, offering immediate income with flexibility to occupy or lease remaining space.
- Located within the North Fremont Specific Plan area, allowing for a wide range of commercial 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
$239,914
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
6.50%
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%
$4,798,280
$4.8M
Cap Rate 7%
$3,427,343
$3.4M
Cap Rate 9%
$2,665,711
$2.7M
Market Conditions
NOI Build-Up for 16,563 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
$357.8K $21.60/SF
− Vacancy
−$15.0K −$0.91/SF
EGI
$342.7K $20.69/SF
− OpEx
−$102.8K −$6.21/SF
NOI
$239.9K $14.48/SF
Area
Monterey County, CA
Vacancy
4.20%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$4,798,280
Cap Rate 7%
$3,427,343
Cap Rate 9%
$2,665,711
Alternative Uses
Best Use
Retail
$3.43M
$3.00M – $4.00M
NOI $239,914 @ 7.0% cap · market cap 6.50%
Second Best
Office B
$3.32M
$2.91M – $3.88M
NOI $232,545 @ 7.0% cap · market cap 6.30%
Theoretical Best
Specialty Retail
$6.32M
$5.53M – $7.38M
NOI $442,699 @ 7.0% cap · market cap 12.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
958
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Partially occupied commercial property in Monterey's commercial corridor.
Where is this flex space located?
The property is located at 527-539 Ramona Ave Monterey, CA.
What is the asking price?
The asking price for this property is $3,690,000.
What are key features of this property?
This property features: Rare opportunity for investors and/or owner‑users in the heart of Monterey’s commercial corridor.; Partially occupied, offering immediate income with flexibility to occupy or lease remaining space.; Located within the North Fremont Specific Plan area, allowing for a wide range of commercial uses.
