Retail Building with Four-Side
For Sale
$1,799,900
7660 Monterey Rd, Gilroy, CA 95020
Newer retail building with high ceilings, signage visibility on four sides, ADA restrooms, and on-site parking.
Property Size3,534 SF
Lot Size0.12 Acres
Price / SF$509.31
Days on Market99
Property Features for 7660 Monterey Rd
General Information
Standard status
Active
Size
3,534 SF
Total Parking Spaces
5
Lot size
0.12 Acres
Zoning
DHD
Building Details
Year Built
2011
Listing Agency:
American West Properties
(408) 800-7028
Listed By:
Rick Chehab · License #01214380
(408) 800-7028
Source:
Exprealty
Added: May 15
Changed: Aug 20
Last Checked: Aug 21 at 10:52AM
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 American West Properties
Investment Insights
Based on property information with market context.
Built in 2011, this commercial retail building is set up for a retail tenant mix under a Commercial Retail (DHD) zoning framework that also allows mixed use. The building features high ceilings and signage visibility from all four sides, with two ADA restrooms and five private parking spaces.
Located within the Gilroy Downtown Historic District (DHD), the property is a high-identity building designed to be seen from multiple directions. Current tenants are in place on month-to-month terms, providing flexibility for an operator evaluating the space for continued occupancy.
For tenants, buyers, or owner-users, the configuration supports a storefront-oriented retail presence with ADA access and convenient on-site parking. For an owner-user, the month-to-month tenancy structure may offer the ability to keep some tenants in place while positioning the property for their own use, supported by the building’s prominent, multi-direction signage visibility.
Located within the Gilroy Downtown Historic District (DHD), the property is a high-identity building designed to be seen from multiple directions. Current tenants are in place on month-to-month terms, providing flexibility for an operator evaluating the space for continued occupancy.
For tenants, buyers, or owner-users, the configuration supports a storefront-oriented retail presence with ADA access and convenient on-site parking. For an owner-user, the month-to-month tenancy structure may offer the ability to keep some tenants in place while positioning the property for their own use, supported by the building’s prominent, multi-direction signage visibility.
Key Highlights
- Commercial retail building in Gilroy Downtown Historic District (DHD), zoned Commercial Retail; mixed use allowed
- Approx. 3,534 SF building on an approx. 5,227 SF lot; built in 2011
- High identity building with signage visibility from all four sides
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
$95,459
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
5.30%
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%
$1,909,180
$1.9M
Cap Rate 7%
$1,363,700
$1.4M
Cap Rate 9%
$1,060,656
$1.1M
Market Conditions
NOI Build-Up for 3,534 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
$142.9K $40.44/SF
− Vacancy
−$6.5K −$1.85/SF
EGI
$136.4K $38.59/SF
− OpEx
−$40.9K −$11.58/SF
NOI
$95.5K $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%
$1,909,180
Cap Rate 7%
$1,363,700
Cap Rate 9%
$1,060,656
Alternative Uses
Best Use
Retail
$1.36M
$1.19M – $1.59M
NOI $95,459 @ 7.0% cap · market cap 5.30%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.13M
$1.87M – $2.49M
NOI $149,347 @ 7.0% cap · market cap 8.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,519
Businesses Nearby
16k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 80%
Shops & Services 20%
Jack in the Box
Dining
12,407 visits/mo
0.3 miles
BMO Harris Bank
Shops & Services
1,851 visits/mo
0.3 miles
Napa Auto Parts
Shops & Services
697 visits/mo
0.3 miles
SpeeDee Oil Change & Auto Service
Shops & Services
628 visits/mo
0.4 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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Frequently Asked Questions
What type of property is this?
Retail space - Newer retail building with high ceilings, signage visibility on four sides, ADA restrooms, and on-site parking.
Where is this retail space located?
The property is located at 7660 Monterey Rd Gilroy, CA.
What is the asking price?
The asking price for this property is $1,799,900.
What are key features of this property?
This property features: Commercial retail building in Gilroy Downtown Historic District (DHD), zoned Commercial Retail; mixed use allowed; Approx. 3,534 SF building on an approx. 5,227 SF lot; built in 2011; High identity building with signage visibility from all four sides
