Office Building with In-Place
For Sale
$4,940,000
8961 Research Drive, Irvine, CA 92618
Two-story office property features modern finishes and an existing first-floor tenancy.
Property Size9,900 SF
Price / SF$498.99
Days on Market17
Property Features for 8961 Research Drive
General Information
Standard status
Active
Size
9,900 SF
Property subtype
COMMERCIAL
Additional Details
Asking Price
$4,940,000
Highway Access
Yes
Building Details
Building Size
9,900 SF
Year Built
2004
Buildings
1
Stories
2
Listing Agency:
Economos Dewolf, Inc.
Listed By:
Geoffrey Dewolf · License #01319312
(949) 576-2751
Source:
Velocityrealtysd
Added: Sep 1
Changed: Sep 17
Last Checked: Sep 16 at 8:27PM
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 Economos Dewolf, Inc.
Investment Insights
Based on property information with market context.
Built in 2004, this 9,900-SF office building offers a two-level configuration with modern finishes throughout. The property is suited to an owner-user seeking an established office setting with part of the building already occupied, while the second floor is scheduled to become available for occupancy on 11/1/2027.
The first floor is leased through 11/2028 and includes extension options. The property is located in Irvine, blocks from Irvine Spectrum and the 5 and 405 Freeways, placing the office near a recognized commercial district and major regional transportation routes.
The first floor is leased through 11/2028 and includes extension options. The property is located in Irvine, blocks from Irvine Spectrum and the 5 and 405 Freeways, placing the office near a recognized commercial district and major regional transportation routes.
Key Highlights
- 9,900‑SF office building constructed in 2004
- First floor leased through 11/2028 with options
- Second floor available for occupancy 11/1/2027
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
$164,421
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
3.33%
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%
$3,288,420
$3.3M
Cap Rate 7%
$2,348,871
$2.3M
Cap Rate 9%
$1,826,900
$1.8M
Market Conditions
NOI Build-Up for 9,900 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
$262.5K $26.52/SF
− Vacancy
−$43.3K −$4.38/SF
EGI
$219.2K $22.14/SF
− OpEx
−$54.8K −$5.54/SF
NOI
$164.4K $16.61/SF
Area
ZIP 92618
Vacancy
16.50%
Lease Rate
$26.52 /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%
$3,288,420
Cap Rate 7%
$2,348,871
Cap Rate 9%
$1,826,900
Alternative Uses
Best Use
Office B
$2.35M
$2.06M – $2.74M
NOI $164,421 @ 7.0% cap · market cap 3.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.26M
$2.85M – $3.80M
NOI $228,210 @ 7.0% cap · market cap 4.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,573
Businesses Nearby
Explore this area
Business Placement
Demographics for 92618, CA
57,488
Population
26,470
Households
2.2
Avg Household Size
35
Median Age
72%
College-Educated
97%
High-School Grad
20.7 sq mi
ZIP Area
2,777
Density / Sq Mi
$135,609
Median Household Income
$85,192
Median Earnings
$3,053
Median Rent
$1,153,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office building - Two-story office property features modern finishes and an existing first-floor tenancy.
Where is this office building located?
The property is located at 8961 Research Drive Irvine, CA.
What is the asking price?
The asking price for this property is $4,940,000.
What are key features of this property?
This property features: 9,900‑SF office building constructed in 2004; First floor leased through 11/2028 with options; Second floor available for occupancy 11/1/2027
