Corner Retail and Office
For Sale
Contact for pricing
701 Laurel St, San Carlos, CA 94070
Two-story building with ground-floor retail/office units and 19 second-floor offices on a corner site.
Property Size14,000 SF
Price / SF$500
Days on Market106
Property Features for 701 Laurel St
General Information
Standard status
Active
Size
14,000 SF
Property subtype
Retail, Office
Zoning
MU-DC
Occupancy
94%
Lease Type
Gross
Net Operating Income
$242,139
Building Details
Units
19
Tenancy
Multi
Listing Agency:
Kinghorn Commercial Properties
Listed By:
Randy Kinghorn · License #CA 01743580
(650) 918-4388
Source:
Crexi
Added: Jun 6
Changed: Sep 13
Last Checked: Sep 18 at 4:36AM
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 Kinghorn Commercial Properties
Investment Insights
Based on property information with market context.
This corner building offers a mixed configuration of ground-floor retail and office space arranged into five units, with a second floor comprised of 19 small office units. The property is presented as an investment and add-value opportunity, with upside driven by renovating and modernizing the second floor and reconfiguring it into one or two larger office suites while capturing additional rentable area currently excluded due to the existing second-floor layout.
The building is located on the corner of Laurel and Cherry Street. The City has permanently closed this section of the street to vehicular traffic and has a vision to transform the 700 block of Laurel Street into a public plaza focused on a more pedestrian-friendly downtown environment.
For tenants and buyers, the asset supports flexible office demand with multiple existing units on the second floor, while the ground level provides storefront-style frontage for retail-oriented uses and customer-facing service businesses. The broader San Carlos context includes proximity between the San Francisco and San Jose economic hubs and a regional concentration of employers across technology, finance, law, and health-related industries.
The building is located on the corner of Laurel and Cherry Street. The City has permanently closed this section of the street to vehicular traffic and has a vision to transform the 700 block of Laurel Street into a public plaza focused on a more pedestrian-friendly downtown environment.
For tenants and buyers, the asset supports flexible office demand with multiple existing units on the second floor, while the ground level provides storefront-style frontage for retail-oriented uses and customer-facing service businesses. The broader San Carlos context includes proximity between the San Francisco and San Jose economic hubs and a regional concentration of employers across technology, finance, law, and health-related industries.
Key Highlights
- Two‑story corner building on Laurel and Cherry St with ground‑floor retail and office space.
- Ground floor currently configured into five units, providing retail and office income potential.
- Second floor features 19 small office units, with approximately 14,000 total building SF.
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
$448,391
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
6.41%
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%
$8,967,820
$9.0M
Cap Rate 7%
$6,405,586
$6.4M
Cap Rate 9%
$4,982,122
$5.0M
Market Conditions
NOI Build-Up for 14,000 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
$769.4K $54.96/SF
− Vacancy
−$171.6K −$12.26/SF
EGI
$597.9K $42.70/SF
− OpEx
−$149.5K −$10.68/SF
NOI
$448.4K $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%
$8,967,820
Cap Rate 7%
$6,405,586
Cap Rate 9%
$4,982,122
Alternative Uses
Best Use
Office B
$6.41M
$5.60M – $7.47M
NOI $448,391 @ 7.0% cap · market cap 6.41%
Second Best
Retail
$5.11M
$4.47M – $5.96M
NOI $357,512 @ 7.0% cap · market cap 5.11%
Theoretical Best
Warehouse
$11.12M
$9.73M – $12.97M
NOI $778,426 @ 7.0% cap · market cap 11.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
2,731
Businesses Nearby
Explore this area
Business Placement
Demographics for 94070, CA
31,585
Population
11,958
Households
2.6
Avg Household Size
42
Median Age
68%
College-Educated
97%
High-School Grad
6.1 sq mi
ZIP Area
5,178
Density / Sq Mi
$235,373
Median Household Income
$118,194
Median Earnings
$2,802
Median Rent
$2,000,001
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office building - Two-story building with ground-floor retail/office units and 19 second-floor offices on a corner site.
Where is this office building located?
The property is located at 701 Laurel St San Carlos, CA.
What is the asking price?
The asking price for this property is $7,000,000.
What are key features of this property?
This property features: Two‑story corner building on Laurel and Cherry St with ground‑floor retail and office space.; Ground floor currently configured into five units, providing retail and office income potential.; Second floor features 19 small office units, with approximately 14,000 total building SF.
