Built-Out Restaurant
New
For Sale
$300,000
88 E San Carlos ST, San Jose, CA 95112
Commercial Business Opportunities, SAN JOSE, CA
Property Size1,495 SF
Lot Size0.11 Acres
Price / SF$200.67
Days on Market2
Property Features for 88 E San Carlos ST
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
DC
Parking
9
Parking features
None
Security features
Security Alarm
Subdivision
Central San Jose
Standard status
Active
Lot size
0.11 Acres
Utilities
Heating system
Forced Air, Central
Cooling system
Ceiling Fan(s), Central Air
Water source
Public
Listing Agency:
Block Change Real Estate
(408) 655-0878
Listed By:
Thao Dang & Brian Ng · License #70013767
(408) 972-1367
Added: Sep 8
Last Checked: Sep 9 at 4:06AM
MLS# ML82060393
Copyright © 2026 MLS Listings, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This approximately 1,495-square-foot restaurant space is fully configured for food-service operations within a newer mixed-use development. The sale covers the commercial kitchen equipment, fixtures, furniture, and associated build-out, while the existing restaurant concept, brand, business name, trademarks, recipes, intellectual property, and other proprietary assets are excluded.
The property is located in Downtown San Jose and carries DC zoning. Building systems include central heating, forced-air heating, central air conditioning, and ceiling fans. Public water service is available. Any occupancy transfer requires landlord approval and a mutually acceptable lease arrangement with the applicable parties.
The property is located in Downtown San Jose and carries DC zoning. Building systems include central heating, forced-air heating, central air conditioning, and ceiling fans. Public water service is available. Any occupancy transfer requires landlord approval and a mutually acceptable lease arrangement with the applicable parties.
Key Highlights
- Approximately 1,495 SF fully built‑out restaurant space
- Commercial kitchen equipment, fixtures, furniture, and improvements included
- Located in a newer mixed‑use development in Downtown San Jose
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
$24,953
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
8.32%
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%
$499,060
$499.1K
Cap Rate 7%
$356,471
$356.5K
Cap Rate 9%
$277,256
$277.3K
Market Conditions
NOI Build-Up for 1,495 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
$38.6K $25.80/SF
− Vacancy
−$2.9K −$1.96/SF
EGI
$35.6K $23.84/SF
− OpEx
−$10.7K −$7.15/SF
NOI
$25.0K $16.69/SF
Area
San Jose, 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%
$499,060
Cap Rate 7%
$356,471
Cap Rate 9%
$277,256
Alternative Uses
Best Use
Specialty Retail
$639.1K
$559.2K – $745.6K
NOI $44,738 @ 7.0% cap · market cap 14.91%
Second Best
Industrial
$356.5K
$311.9K – $415.9K
NOI $24,953 @ 7.0% cap · market cap 8.32%
Theoretical Best
Office A
$902.9K
$790.0K – $1.05M
NOI $63,201 @ 7.0% cap · market cap 21.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,957
Businesses Nearby
125k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Hotels & Casinos 30%
Dining 29%
Shops & Services 25%
Groceries 17%
7-Eleven
Shops & Services
23,335 visits/mo
0.3 miles
Jack in the Box
Dining
22,860 visits/mo
0.1 miles
San Jose Marriott
Hotels & Casinos
21,448 visits/mo
0.2 miles
Grocery Outlet Bargain Market
Groceries
21,340 visits/mo
0.5 miles
Hyatt Place
Hotels & Casinos
11,717 visits/mo
0.4 miles
Demographics for 95112, CA
60,754
Population
22,969
Households
2.6
Avg Household Size
33
Median Age
39%
College-Educated
82%
High-School Grad
7.3 sq mi
ZIP Area
8,322
Density / Sq Mi
$89,649
Median Household Income
$45,690
Median Earnings
$2,095
Median Rent
$956,300
Median Home Value
Market
Vacancy Rate% for Retail in San Jose, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant asset sale with commercial kitchen equipment, furnishings, fixtures, and completed improvements in a mixed-use development.
Where is this conventional restaurant located?
The property is located at 88 E San Carlos ST San Jose, CA.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: Approximately 1,495 SF fully built‑out restaurant space; Commercial kitchen equipment, fixtures, furniture, and improvements included; Located in a newer mixed‑use development in Downtown San Jose
