Two-Wing Medical Office
For Sale
$1,530,000
850 Freedom Boulevard, Watsonville, CA 95076
Neighborhood Commercial zoning accommodates an occupied professional wing and a separate vacant wing for medical or dental use.
Property Size5,034 SF
Price / SF$303.93
Days on Market242
Property Features for 850 Freedom Boulevard
General Information
Standard status
Active
Size
5,034 SF
Property subtype
General Commercial
Zoning
Neighborhood Commercial
Taxes and HOA fees
Annual Taxes
$20,000
Amenities
3
Composition
Neigborhood Commercial
4 Parking Spaces.
Building Details
Year Built
1940
Buildings
1
Listing Agency:
(831) 372-1922
Listed By:
Albers Real Estate Investment Company
Source:
Xome
Added: Dec 31, 2025
Changed: Aug 29
Last Checked: Aug 29 at 7:32PM
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 Albers Real Estate Investment Company
Investment Insights
Based on property information with market context.
This 5,034-square-foot medical office property was built in 1940 and is arranged in two wings. One wing is currently used by a chiropractor and a physical therapist, while the second wing is vacant and suited to medical or dental occupancy. The layout provides a clear separation between the existing professional operations and the available space.
The property is zoned Neighborhood Commercial and includes 4 parking spaces. The neighboring parcel at 846 Freedom Boulevard is also offered for sale, providing an adjacent property consideration for purchasers evaluating both locations together.
The property is zoned Neighborhood Commercial and includes 4 parking spaces. The neighboring parcel at 846 Freedom Boulevard is also offered for sale, providing an adjacent property consideration for purchasers evaluating both locations together.
Key Highlights
- 5,034‑square‑foot medical office building
- Two‑wing layout with distinct operating areas
- One wing occupied by a chiropractor and physical therapist
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
$123,685
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
8.08%
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%
$2,473,700
$2.5M
Cap Rate 7%
$1,766,929
$1.8M
Cap Rate 9%
$1,374,278
$1.4M
Market Conditions
NOI Build-Up for 5,034 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
$211.4K $42.00/SF
− Vacancy
−$46.5K −$9.24/SF
EGI
$164.9K $32.76/SF
− OpEx
−$41.2K −$8.19/SF
NOI
$123.7K $24.57/SF
Area
Santa Cruz County, CA
Vacancy
22.00%
Lease Rate
$42.00 /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%
$2,473,700
Cap Rate 7%
$1,766,929
Cap Rate 9%
$1,374,278
Alternative Uses
Best Use
Healthcare Medical
$2.22M
$1.94M – $2.59M
NOI $155,436 @ 7.0% cap · market cap 10.16%
Second Best
Office B
$1.77M
$1.55M – $2.06M
NOI $123,685 @ 7.0% cap · market cap 8.08%
Theoretical Best
Retail
$2.88M
$2.52M – $3.36M
NOI $201,491 @ 7.0% cap · market cap 13.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,389
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 95076, CA
84,433
Population
26,488
Households
3.2
Avg Household Size
35
Median Age
19%
College-Educated
72%
High-School Grad
135.1 sq mi
ZIP Area
625
Density / Sq Mi
$86,685
Median Household Income
$36,077
Median Earnings
$1,851
Median Rent
$767,200
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Neighborhood Commercial zoning accommodates an occupied professional wing and a separate vacant wing for medical or dental use.
Where is this medical office space located?
The property is located at 850 Freedom Boulevard Watsonville, CA.
What is the asking price?
The asking price for this property is $1,530,000.
What are key features of this property?
This property features: 5,034‑square‑foot medical office building; Two‑wing layout with distinct operating areas; One wing occupied by a chiropractor and physical therapist
