Renovated Gilroy Commercial
For Sale
$1,459,900
7451 Monterey Road, Gilroy, CA 95020
Two renovated buildings in revitalizing downtown Gilroy with business opportunities.
Property Size2,376 SF
Price / SF$614.44
Days on Market97
Property Features for 7451 Monterey Road
General Information
Standard status
Active
Size
2,376 SF
Zoning
C2
Amenities
Customized Wheelchair Accessible
Common
Building Details
Building Size
2,376 SF
Year Built
1900
Listing Agency:
KELLER WILLIAMS PROPERTY TEAM
(408) 805-0359
Listed By:
Ryan Mull
Source:
Evrealestate
Added: May 20
Changed: Aug 23
Last Checked: Aug 23 at 10:42AM
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 KELLER WILLIAMS PROPERTY TEAM
Investment Insights
Based on property information with market context.
This property features two renovated buildings on one lot with a shared patio area. The main building, suitable for retail or office use, faces Monterey Street in downtown Gilroy. The property is bordered by the Paseo Walkway, which connects downtown with parking and historical displays, and by Gourmet Alley, which is undergoing a beautification project to include art, lighting, seating, greenscape, and a resurfaced parking lot. Both buildings have been completely renovated, retrofitted, upgraded, and tastefully finished. The property includes an interior and exterior video surveillance system and is ADA and code compliant. This property offers various business opportunities and is suitable for an owner/occupant looking to establish their business in an up-and-coming Silicon Valley downtown. The location is very bikeable (bike score 82) and very walkable (walk score 90).
Key Highlights
- Most affordable commercial real estate in Santa Clara County.
- Two renovated buildings on one lot with a shared patio.
- Prime location on Monterey Street** in downtown Gilroy, near Paseo Walkway and Gourmet Alley.
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
$64,179
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
4.40%
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%
$1,283,580
$1.3M
Cap Rate 7%
$916,843
$916.8K
Cap Rate 9%
$713,100
$713.1K
Market Conditions
NOI Build-Up for 2,376 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
$96.1K $40.44/SF
− Vacancy
−$4.4K −$1.85/SF
EGI
$91.7K $38.59/SF
− OpEx
−$27.5K −$11.58/SF
NOI
$64.2K $27.01/SF
Area
Santa Clara County, CA
Vacancy
4.58%
Lease Rate
$40.44 /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%
$1,283,580
Cap Rate 7%
$916,843
Cap Rate 9%
$713,100
Alternative Uses
Best Use
Retail
$916.8K
$802.2K – $1.07M
NOI $64,179 @ 7.0% cap · market cap 4.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.43M
$1.26M – $1.67M
NOI $100,410 @ 7.0% cap · market cap 6.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,537
Businesses Nearby
21k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 84%
Shops & Services 12%
Home Improvements & Furnishings 3%
Jack in the Box
Dining
12,407 visits/mo
0.5 miles
Puerto Vallarta
Dining
4,961 visits/mo
0.4 miles
BMO Harris Bank
Shops & Services
1,851 visits/mo
0.4 miles
Napa Auto Parts
Shops & Services
697 visits/mo
0.4 miles
Ferguson
Home Improvements & Furnishings
661 visits/mo
0.5 miles
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 Retail in West region
Questions? Ask Rey
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Similar Off Market Nearby
- Azucena Blooms — 7561 Monterey Rd, Gilroy, CA 95020
- Gilroy Flower Shop — 47 5th St, Gilroy, CA 95020
- Fridayflowers.com — Gilroy, CA 95020
- Friday Flowers Gilroy — 7680 Monterey Hwy Suite 106, Gilroy, CA 95020
- Floreria 12 De Abril — 7259 Monterey Hwy, Gilroy, CA 95020
Frequently Asked Questions
What type of property is this?
Storefront property - Two renovated buildings in revitalizing downtown Gilroy with business opportunities.
Where is this storefront property located?
The property is located at 7451 Monterey Road Gilroy, CA.
What is the asking price?
The asking price for this property is $1,459,900.
What are key features of this property?
This property features: Most affordable commercial real estate in Santa Clara County.; Two renovated buildings on one lot with a shared patio.; Prime location on Monterey Street** in downtown Gilroy, near Paseo Walkway and Gourmet Alley.
