Office/Warehouse Building Near
For Sale
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895 Palomar Street, Chula Vista, CA 91911
6,612 SF office/warehouse building near Chula Vista Bayfront.
Property Size6,612 SF
Price / SF$449.94
Days on Market153
Property Features for 895 Palomar Street
General Information
Standard status
Active
Size
6,612 SF
Total Parking Spaces
18
Property subtype
Office, Industrial
Investment Type
Owner/User
Building Details
Year Built
1979
Stories
2
Tenancy
Multi
Listing Agency:
Voit Real Estate Services San Diego
(858) 453-0505
Listed By:
Kimberly Clark · License #CA 01439305
Source:
Crexi
Added: Mar 13
Changed: Aug 8
Last Checked: Aug 11 at 2:09PM
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 Voit Real Estate Services San Diego
Investment Insights
Based on property information with market context.
This 6,612 square foot office/warehouse building presents an opportunity for either an owner-user or an investor. Situated along the Bayfront, the property benefits from its proximity to the new Chula Vista Bayfront Project currently under construction. Zoned for light industrial/commercial use, the property accommodates a wide variety of uses. The building features a combination of 5 warehouses and 12 small offices. It offers views of the Bayfront and provides convenient access to the 5 freeway.
Key Highlights
- Bayfront location near the new Chula Vista Bayfront Project.
- 6,612 SF Office/Warehouse building suitable for owner‑user or investor.
- Light industrial/commercial zoning allows for a wide variety of uses.
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
$92,569
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
3.11%
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%
$1,851,380
$1.9M
Cap Rate 7%
$1,322,414
$1.3M
Cap Rate 9%
$1,028,544
$1.0M
Market Conditions
NOI Build-Up for 6,612 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
$153.1K $23.16/SF
− Vacancy
−$10.7K −$1.62/SF
EGI
$142.4K $21.54/SF
− OpEx
−$49.8K −$7.54/SF
NOI
$92.6K $14.00/SF
Area
Chula Vista, CA
Vacancy
7.00%
Lease Rate
$23.16 /SF/Yr
Expense Ratio
35.00%
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%
$1,851,380
Cap Rate 7%
$1,322,414
Cap Rate 9%
$1,028,544
Alternative Uses
Best Use
Flex RnD
$1.32M
$1.16M – $1.54M
NOI $92,569 @ 7.0% cap · market cap 3.11%
Second Best
Warehouse
$1.17M
$1.02M – $1.36M
NOI $81,659 @ 7.0% cap · market cap 2.74%
Theoretical Best
Office A
$2.11M
$1.85M – $2.46M
NOI $147,616 @ 7.0% cap · market cap 4.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,197
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 91911, CA
85,442
Population
27,533
Households
3.1
Avg Household Size
37
Median Age
19%
College-Educated
78%
High-School Grad
12.7 sq mi
ZIP Area
6,728
Density / Sq Mi
$79,334
Median Household Income
$39,003
Median Earnings
$1,931
Median Rent
$602,000
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Similar Off Market Nearby
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- Quality Coast Inc — 2520 Main St A, Chula Vista, CA 91911
Frequently Asked Questions
What type of property is this?
Flex space - 6,612 SF office/warehouse building near Chula Vista Bayfront.
Where is this flex space located?
The property is located at 895 Palomar Street Chula Vista, CA.
What is the asking price?
The asking price for this property is $2,975,000.
What are key features of this property?
This property features: Bayfront location near the new Chula Vista Bayfront Project.; 6,612 SF Office/Warehouse building suitable for owner‑user or investor.; Light industrial/commercial zoning allows for a wide variety of uses.
