Two-Building Office
For Sale
$1,150,000
621 Water Street, Santa Cruz, CA 95060
Two well-maintained office buildings offer an existing tenant and a recently vacated rear building with flexible office features.
Property Size1,485 SF
Price / SF$774.41
Days on Market12
Property Features for 621 Water Street
General Information
Standard status
Active
Size
1,485 SF
Property subtype
General Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
Tile
8 Parking Spaces.
Building Details
Year Built
1980
Buildings
2
Listing Agency:
JR Parrish Inc.
(831) 476-2222
Listed By:
Carol Lezin · License #00878937
Source:
Xome
Added: Aug 21
Changed: Aug 31
Last Checked: Aug 31 at 1:24PM
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 JR Parrish Inc.
Investment Insights
Based on property information with market context.
This office property includes two buildings on one parcel. The street-facing building contains approximately 1,000 SF and is occupied by a month-to-month tenant who would like to remain. The rear building measures 1,485 SF and was recently vacated, creating immediate availability within the property. Both buildings are described as being in excellent condition.
The rear office offers abundant natural light, a practical floor plan, large offices, a full kitchen, and vaulted ceilings. The front building benefits from strong traffic exposure and is also in great condition. The property includes 8 parking spaces, with easy access to nearby amenities and the freeway. Constructed in 1980, the two-building layout provides a combination of existing occupancy and available office space.
The rear office offers abundant natural light, a practical floor plan, large offices, a full kitchen, and vaulted ceilings. The front building benefits from strong traffic exposure and is also in great condition. The property includes 8 parking spaces, with easy access to nearby amenities and the freeway. Constructed in 1980, the two-building layout provides a combination of existing occupancy and available office space.
Key Highlights
- Two buildings on one parcel with a combined 2,485 SF
- Street‑facing 1,000 SF building with a month‑to‑month tenant
- Rear 1,485 SF building recently vacated
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
$36,486
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
3.17%
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%
$729,720
$729.7K
Cap Rate 7%
$521,229
$521.2K
Cap Rate 9%
$405,400
$405.4K
Market Conditions
NOI Build-Up for 1,485 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
$62.4K $42.00/SF
− Vacancy
−$13.7K −$9.24/SF
EGI
$48.6K $32.76/SF
− OpEx
−$12.2K −$8.19/SF
NOI
$36.5K $24.57/SF
Area
Santa Cruz County, CA
Vacancy
22.00%
Lease Rate
$42.00 /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%
$729,720
Cap Rate 7%
$521,229
Cap Rate 9%
$405,400
Alternative Uses
Best Use
Office B
$521.2K
$456.1K – $608.1K
NOI $36,486 @ 7.0% cap · market cap 3.17%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$849.1K
$743.0K – $990.7K
NOI $59,439 @ 7.0% cap · market cap 5.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
3,135
Businesses Nearby
Explore this area
Business Placement
Demographics for 95060, CA
47,931
Population
20,181
Households
2.4
Avg Household Size
39
Median Age
55%
College-Educated
94%
High-School Grad
54.5 sq mi
ZIP Area
879
Density / Sq Mi
$106,040
Median Household Income
$46,231
Median Earnings
$2,356
Median Rent
$1,189,300
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two well-maintained office buildings offer an existing tenant and a recently vacated rear building with flexible office features.
Where is this office building located?
The property is located at 621 Water Street Santa Cruz, CA.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: Two buildings on one parcel with a combined 2,485 SF; Street‑facing 1,000 SF building with a month‑to‑month tenant; Rear 1,485 SF building recently vacated
