Single-Story Office
New
For Sale
$1,800,000
843 Malone Road, San Jose, CA 95125
Five private offices support a compact professional layout with reception, waiting, and additional divisible workspace.
Property Size2,199 SF
Price / SF$818.55
Days on Market7
Property Features for 843 Malone Road
General Information
Standard status
Active
Size
2,199 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$11,300
Amenities
Tile
7 Parking Spaces.
Building Details
Year Built
1958
Listing Agency:
(408) 427-8963
Listed By:
Compass
Source:
Xome
Added: Aug 30
Changed: Sep 4
Last Checked: Sep 4 at 3:13PM
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 Compass
Investment Insights
Based on property information with market context.
Located at 843 Malone Road in San Jose, this single-level office property offers five private offices, an open area that can be divided into two more rooms, and a dedicated entry waiting room with reception space. Two offices include private half-bathrooms, complemented by two additional centrally positioned half-bathrooms.
The separate kitchen has new countertops, while recent interior improvements include fresh paint and luxury vinyl flooring across most of the building. Constructed in 1958, the property provides a practical layout for professional office use in Willow Glen.
The separate kitchen has new countertops, while recent interior improvements include fresh paint and luxury vinyl flooring across most of the building. Constructed in 1958, the property provides a practical layout for professional office use in Willow Glen.
Key Highlights
- Five private offices plus open area convertible to two additional offices
- Dedicated waiting room and reception area at the entrance
- Two private half‑bathrooms within offices and two central half‑bathrooms
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
$77,359
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
4.30%
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%
$1,547,180
$1.5M
Cap Rate 7%
$1,105,129
$1.1M
Cap Rate 9%
$859,544
$859.5K
Market Conditions
NOI Build-Up for 2,199 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
$123.2K $56.04/SF
− Vacancy
−$20.1K −$9.13/SF
EGI
$103.1K $46.91/SF
− OpEx
−$25.8K −$11.73/SF
NOI
$77.4K $35.18/SF
Area
ZIP 95125
Vacancy
16.30%
Lease Rate
$56.04 /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%
$1,547,180
Cap Rate 7%
$1,105,129
Cap Rate 9%
$859,544
Alternative Uses
Best Use
Office B
$1.11M
$967.0K – $1.29M
NOI $77,359 @ 7.0% cap · market cap 4.30%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.33M
$1.16M – $1.55M
NOI $92,963 @ 7.0% cap · market cap 5.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
877
Businesses Nearby
Explore this area
Business Placement
Demographics for 95125, CA
54,000
Population
22,151
Households
2.4
Avg Household Size
41
Median Age
56%
College-Educated
91%
High-School Grad
7.3 sq mi
ZIP Area
7,397
Density / Sq Mi
$148,422
Median Household Income
$77,440
Median Earnings
$2,394
Median Rent
$1,646,000
Median Home Value
Market
Vacancy Rate% for Office in San Jose, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Five private offices support a compact professional layout with reception, waiting, and additional divisible workspace.
Where is this office building located?
The property is located at 843 Malone Road San Jose, CA.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: Five private offices plus open area convertible to two additional offices; Dedicated waiting room and reception area at the entrance; Two private half‑bathrooms within offices and two central half‑bathrooms
