High-Bay Flex
New
For Sale
$5,399,999
6881 Monterey Road, Gilroy, CA 95020
Flexible commercial building with showroom functionality, warehouse capacity, skylights, and 600-amp three-phase power.
Property Size30,737 SF
Price / SF$175.68
Days on Market6
Property Features for 6881 Monterey Road
General Information
Standard status
Active
Size
30,737 SF
Property subtype
Commercial
Site & Location
Highway Access
Yes
Utilities to Site
Yes
Warehouse & Industrial
Clear Height
24 ft
Warehouse Space
16,000 SF
Power
600 amps
Three-Phase Power
Yes
Amenities
skylights
600-amp, 3-phase power
Building Details
Year Built
1990
Buildings
1
Building Size
30,737 SF
Listing Agency:
Renz & Renz
Listed By:
Christian Renz
(714) 497-3550
Source:
Sevengables
Added: Sep 14
Changed: Sep 18
Last Checked: Sep 18 at 3:10PM
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 Renz & Renz
Investment Insights
Based on property information with market context.
This 30,737-square-foot flex property combines showroom-oriented space with a high-bay warehouse configuration. The building includes 22- to 24-foot clear heights in the warehouse area, skylights that provide natural light, and 600-amp, 3-phase power. Its prior retail and racked-warehouse uses support a range of commercial layouts without limiting the property to a single operating model.
Located on Monterey Road in Gilroy, the property offers freeway access and sits 25 miles south of San Jose. Permitted uses identified for the site include general retail, office, medical, showroom, grocery, gym, furniture, automotive, watercraft, ATV, motorcycle, RV, sports, event, logistics, distribution, and storage-oriented operations.
Located on Monterey Road in Gilroy, the property offers freeway access and sits 25 miles south of San Jose. Permitted uses identified for the site include general retail, office, medical, showroom, grocery, gym, furniture, automotive, watercraft, ATV, motorcycle, RV, sports, event, logistics, distribution, and storage-oriented operations.
Key Highlights
- 30,737‑square‑foot flex showroom and high‑bay warehouse
- 22- to 24‑foot clear heights in the warehouse area
- 600‑amp, 3‑phase power
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
$476,388
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
8.82%
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%
$9,527,760
$9.5M
Cap Rate 7%
$6,805,543
$6.8M
Cap Rate 9%
$5,293,200
$5.3M
Market Conditions
NOI Build-Up for 30,737 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
$793.0K $25.80/SF
− Vacancy
−$60.1K −$1.96/SF
EGI
$732.9K $23.84/SF
− OpEx
−$256.5K −$8.35/SF
NOI
$476.4K $15.50/SF
Area
Santa Clara County, CA
Vacancy
7.58%
Lease Rate
$25.80 /SF/Yr
Expense Ratio
35.00%
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%
$9,527,760
Cap Rate 7%
$6,805,543
Cap Rate 9%
$5,293,200
Alternative Uses
Best Use
Retail
$11.86M
$10.38M – $13.84M
NOI $830,252 @ 7.0% cap · market cap 15.38%
Second Best
Warehouse
$8.90M
$7.79M – $10.38M
NOI $622,968 @ 7.0% cap · market cap 11.54%
Theoretical Best
Office A
$18.56M
$16.24M – $21.65M
NOI $1,298,948 @ 7.0% cap · market cap 24.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
24 ft
Clear height
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
834
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Flexible commercial building with showroom functionality, warehouse capacity, skylights, and 600-amp three-phase power.
Where is this flex space located?
The property is located at 6881 Monterey Road Gilroy, CA.
What is the asking price?
The asking price for this property is $5,399,999.
What are key features of this property?
This property features: 30,737‑square‑foot flex showroom and high‑bay warehouse; 22- to 24‑foot clear heights in the warehouse area; 600‑amp, 3‑phase power
