Two-Story Office Building For
For Sale
$2,695,000
637 Main Street, Half Moon Bay, CA 94019
Two-story office building in high-traffic downtown location.
Property Size6,860 SF
Price / SF$392.86
Days on Market962
Property Features for 637 Main Street
General Information
Standard status
Active
Size
6,860 SF
Property subtype
Commercial
Amenities
Assigned Spaces
Carpet Flooring
Parking Area
Tar & Gravel Roof
Building Details
Year Built
1940
Listing Agency:
CAPITAL REALTY GROUP
(650) 342-0373
Listed By:
BRETT BARRON · License #00893787
Source:
Corcoran
Added: Jan 10, 2024
Changed: Aug 8
Last Checked: Aug 8 at 5:55AM
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 CAPITAL REALTY GROUP
Investment Insights
Based on property information with market context.
This two-story office building, with a total size of 6,860 square feet, is available for sale. Situated on Main Street, the property benefits from high foot traffic and visibility. It is zoned under the Commercial Downtown-Heritage District, which allows for upper-level office or residential use.
Key Highlights
- Price Improvement
- Fantastic Main Street Location
- High Visibility and Optimal Foot Traffic
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
$219,712
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
8.15%
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%
$4,394,240
$4.4M
Cap Rate 7%
$3,138,743
$3.1M
Cap Rate 9%
$2,441,244
$2.4M
Market Conditions
NOI Build-Up for 6,860 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
$377.0K $54.96/SF
− Vacancy
−$84.1K −$12.26/SF
EGI
$292.9K $42.70/SF
− OpEx
−$73.2K −$10.68/SF
NOI
$219.7K $32.03/SF
Area
San Mateo County, CA
Vacancy
22.30%
Lease Rate
$54.96 /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%
$4,394,240
Cap Rate 7%
$3,138,743
Cap Rate 9%
$2,441,244
Alternative Uses
Best Use
Office B
$3.14M
$2.75M – $3.66M
NOI $219,712 @ 7.0% cap · market cap 8.15%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$5.45M
$4.77M – $6.36M
NOI $381,429 @ 7.0% cap · market cap 14.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,047
Businesses Nearby
Explore this area
Business Placement
Demographics for 94019, CA
15,483
Population
5,849
Households
2.6
Avg Household Size
46
Median Age
54%
College-Educated
91%
High-School Grad
59.7 sq mi
ZIP Area
259
Density / Sq Mi
$153,272
Median Household Income
$72,042
Median Earnings
$1,977
Median Rent
$1,509,300
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-story office building in high-traffic downtown location.
Where is this office building located?
The property is located at 637 Main Street Half Moon Bay, CA.
What is the asking price?
The asking price for this property is $2,695,000.
What are key features of this property?
This property features: Price Improvement; Fantastic Main Street Location; High Visibility and Optimal Foot Traffic
