Industrial Condo Cold Shell
For Sale
$495,000
7500 Arroyo Circle #140, Gilroy, CA 95020
Cold shell commercial/industrial condo with rear rollup door.
Property Size1,565 SF
Price / SF$316.29
Days on Market243
Property Features for 7500 Arroyo Circle #140
General Information
Standard status
Active
Size
1,565 SF
Property subtype
Commercial
Amenities
Common Garage
Flat/Low Pitch Roof
No Heat Heating
Building Details
Year Built
2000
Listing Agency:
RENZ & RENZ
(408) 846-1031
Listed By:
GEORGE RENZ · License #00854816
Source:
Corcoran
Added: Dec 12, 2025
Changed: Aug 8
Last Checked: Apr 5 at 9:11PM
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 commercial/industrial condo is a cold shell space situated in the middle of a 10-unit building. The unit features an open layout with a double-door glass frontage and a 12-foot rollup/grade door at the rear. Electric service is available to the building, but the unit is not currently wired. There is no existing bathroom, office, or internal build-out. The property offers 1565 square feet of space. The monthly association fee is $442.
Key Highlights
- Cold shell: a blank canvas for your business vision.
- Double‑door glass frontage: Offers excellent visibility.
- 12' rollup/grade door at rear: Facilitates easy loading.
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
$26,121
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
5.28%
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%
$522,420
$522.4K
Cap Rate 7%
$373,157
$373.2K
Cap Rate 9%
$290,233
$290.2K
Market Conditions
NOI Build-Up for 1,565 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
$40.4K $25.80/SF
− Vacancy
−$3.1K −$1.96/SF
EGI
$37.3K $23.84/SF
− OpEx
−$11.2K −$7.15/SF
NOI
$26.1K $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%
$522,420
Cap Rate 7%
$373,157
Cap Rate 9%
$290,233
Alternative Uses
Best Use
Industrial
$373.2K
$326.5K – $435.4K
NOI $26,121 @ 7.0% cap · market cap 5.28%
Second Best
Flex RnD
$346.5K
$303.2K – $404.3K
NOI $24,256 @ 7.0% cap · market cap 4.90%
Theoretical Best
Office A
$944.8K
$826.7K – $1.10M
NOI $66,137 @ 7.0% cap · market cap 13.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
477
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
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Frequently Asked Questions
What type of property is this?
Flex space - Cold shell commercial/industrial condo with rear rollup door.
Where is this flex space located?
The property is located at 7500 Arroyo Circle #140 Gilroy, CA.
What is the asking price?
The asking price for this property is $495,000.
What are key features of this property?
This property features: Cold shell: a blank canvas for your business vision.; Double‑door glass frontage: Offers excellent visibility.; 12' rollup/grade door at rear: Facilitates easy loading.
