R&D Industrial
For Sale
$10,900,000
700 Jarvis Drive Morgan, Morgan Hill, CA 95037
R&D/industrial facility with quality office buildout, 20’–24’ clear height, and multiple loading doors.
Property Size54,545 SF
Lot Size3.09 Acres
Price / SF$199.83
Days on Market28
Property Features for 700 Jarvis Drive Morgan
General Information
Standard status
Active
Size
54,545 SF
Total Parking Spaces
125
Lot size
3.09 Acres
Property subtype
Factory
Warehouse & Industrial
Clear Height
24 ft
Dock-High Doors
1
Drive-In Doors
11
Power
1,200 amps
Voltage
480 V
Three-Phase Power
Yes
Additional Details
Highway Access
Yes
Amenities
high-image corporate facility
quality office buildout
attractive interior finishes
warehouse functionality
robust power capacity
efficient loading capabilities
Building Details
Building Size
54,545 SF
Year Built
1998
Buildings
1
Parking Ratio
2.89 per 1,000 SF
Listing Agency:
SVN | The Kase Group
(408) 601-0049
Listed By:
Robin Santiago · License #01754421
(408) 601-0049
Source:
Thebrokerlist
Added: Jul 28
Changed: Aug 23
Last Checked: Aug 24 at 3:17AM
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 SVN | The Kase Group
Investment Insights
Based on property information with market context.
This R&D/industrial building totals 54,545 square feet on a 3.09-acre parcel and features a high-image corporate office buildout of approximately 25% of the space, with attractive interior finishes. The warehouse portion supports strong operational functionality with 20’–24’ clear height and efficient loading, including one dock-high platform and 11 grade-level loading doors.
The property includes robust power capacity of 1,200 amps at 480V three-phase service. Parking is provided with 125 stalls. The building is located in Morgan Hill’s premier industrial and technology corridor with convenient access to Highway 101, surrounded by established technology, manufacturing, and industrial users.
The property includes robust power capacity of 1,200 amps at 480V three-phase service. Parking is provided with 125 stalls. The building is located in Morgan Hill’s premier industrial and technology corridor with convenient access to Highway 101, surrounded by established technology, manufacturing, and industrial users.
Key Highlights
- ±154,545 SF R&D/industrial building on a ±3.09‑acre parcel with a quality office buildout (~25% office).
- Warehouse offers 20’–24’ clear height.
- Loading includes 1 dock‑high platform and 11 grade‑level loading doors.
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
$910,413
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
8.35%
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%
$18,208,260
$18.2M
Cap Rate 7%
$13,005,900
$13.0M
Cap Rate 9%
$10,115,700
$10.1M
Market Conditions
NOI Build-Up for 54,545 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
$1.41M $25.80/SF
− Vacancy
−$106.7K −$1.96/SF
EGI
$1.30M $23.84/SF
− OpEx
−$390.2K −$7.15/SF
NOI
$910.4K $16.69/SF
Area
Santa Clara County, CA
Vacancy
7.58%
Lease Rate
$25.80 /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%
$18,208,260
Cap Rate 7%
$13,005,900
Cap Rate 9%
$10,115,700
Alternative Uses
Best Use
Warehouse
$15.79M
$13.82M – $18.43M
NOI $1,105,502 @ 7.0% cap · market cap 10.14%
Second Best
Industrial
$13.01M
$11.38M – $15.17M
NOI $910,413 @ 7.0% cap · market cap 8.35%
Theoretical Best
Office A
$32.93M
$28.81M – $38.42M
NOI $2,305,076 @ 7.0% cap · market cap 21.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
24 ft
Clear height
1
Dock-high doors
11
Drive-in doors
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
530
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 95037, CA
53,126
Population
17,185
Households
3.1
Avg Household Size
41
Median Age
44%
College-Educated
90%
High-School Grad
120.1 sq mi
ZIP Area
442
Density / Sq Mi
$158,256
Median Household Income
$71,130
Median Earnings
$2,242
Median Rent
$1,152,400
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - R&D/industrial facility with quality office buildout, 20’–24’ clear height, and multiple loading doors.
Where is this flex space located?
The property is located at 700 Jarvis Drive Morgan Morgan Hill, CA.
What is the asking price?
The asking price for this property is $10,900,000.
What are key features of this property?
This property features: ±154,545 SF R&D/industrial building on a ±3.09‑acre parcel with a quality office buildout (~25% office).; Warehouse offers 20’–24’ clear height.; Loading includes 1 dock‑high platform and 11 grade‑level loading doors.
