Vacant Warehouse Flex
New
For Sale
$1,900,000
6380 Monterey Road, Gilroy, CA 95020
One-building commercial property combining warehouse space with office-oriented RV use.
Property Size4,000 SF
Price / SF$475
Days on Market7
Property Features for 6380 Monterey Road
General Information
Standard status
Active
Size
4,000 SF
Property subtype
Commercial
Amenities
Central air
Metal Roof
Central Air Cooling
Central Forced Air Heating
Concrete Flooring
Thermostat Controller
Whole House Fan
Building Details
Year Built
1948
Buildings
1
Listing Agency:
CAL-NEVA REALTY
(408) 483-0097
Listed By:
FE CASEM · License #01391790
Source:
Corcoran
Added: Aug 14
Changed: Aug 17
Last Checked: Aug 19 at 9:41AM
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 CAL-NEVA REALTY
Investment Insights
Based on property information with market context.
This vacant flex-space property includes a single warehouse building measuring 4,000 SF. The existing configuration is identified for warehouse use, with RV use associated with offices.
Built in 1948, the property is located at 6380 Monterey Road in Gilroy, California. Its simple one-building layout provides a defined basis for evaluating warehouse and office-related use.
Built in 1948, the property is located at 6380 Monterey Road in Gilroy, California. Its simple one-building layout provides a defined basis for evaluating warehouse and office-related use.
Key Highlights
- 4,000 SF warehouse building
- Vacant property with one building
- RV use identified for offices
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
$81,071
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
4.27%
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%
$1,621,420
$1.6M
Cap Rate 7%
$1,158,157
$1.2M
Cap Rate 9%
$900,789
$900.8K
Market Conditions
NOI Build-Up for 4,000 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
$103.2K $25.80/SF
− Vacancy
−$7.8K −$1.96/SF
EGI
$95.4K $23.84/SF
− OpEx
−$14.3K −$3.58/SF
NOI
$81.1K $20.27/SF
Area
Santa Clara County, CA
Vacancy
7.58%
Lease Rate
$25.80 /SF/Yr
Expense Ratio
15.00%
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%
$1,621,420
Cap Rate 7%
$1,158,157
Cap Rate 9%
$900,789
Alternative Uses
Best Use
Warehouse
$1.16M
$1.01M – $1.35M
NOI $81,071 @ 7.0% cap · market cap 4.27%
Second Best
Industrial
$953.8K
$834.6K – $1.11M
NOI $66,764 @ 7.0% cap · market cap 3.51%
Theoretical Best
Office A
$2.41M
$2.11M – $2.82M
NOI $169,040 @ 7.0% cap · market cap 8.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
602
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95020, CA
68,090
Population
20,679
Households
3.3
Avg Household Size
37
Median Age
28%
College-Educated
83%
High-School Grad
151.8 sq mi
ZIP Area
449
Density / Sq Mi
$134,242
Median Household Income
$50,421
Median Earnings
$2,256
Median Rent
$1,005,600
Median Home Value
Market
Vacancy Rate% for Industrial 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 - One-building commercial property combining warehouse space with office-oriented RV use.
Where is this flex space located?
The property is located at 6380 Monterey Road Gilroy, CA.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: 4,000 SF warehouse building; Vacant property with one building; RV use identified for offices
