Vacant Office Building For
For Sale
Contact for pricing
Pending
901 Tower Way, Bakersfield, CA 93309
Three-story vacant office building in the Southwest Office Market.
Property Size28,411 SF
Days on Market158
Property Features for 901 Tower Way
General Information
Standard status
Pending
Size
28,411 SF
Property subtype
Office
Zoning
C-O, Commercial Office
Investment Type
Owner/User
Building Details
Year Built
1984
Stories
3
Listing Agency:
ASU Commercial
(661) 616-3567
Listed By:
Martin Starr · License #CA 01179469
Source:
Crexi
Added: Mar 27
Changed: Aug 8
Last Checked: Jul 25 at 9:47AM
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 ASU Commercial
Investment Insights
Based on property information with market context.
Located in the Southwest Office Market of Bakersfield, 901 Tower Way is a three-story office building. The property is fully vacant, making it suitable for an owner/user of office space. The building is situated near over 3.2 million square feet of professional office space off of the California Avenue corridor. Its location provides access to all areas of Greater Bakersfield via the Truxtun Avenue Extension, the Westside Parkway, and Highway 99. The property contains 28,411 square feet. The seller is replacing two 50-ton HVAC units and installing a new boiler pump prior to sale.
Key Highlights
- Ideal for owner/user due to fully vacant status.
- Located in the heart of Bakersfield’s largest office submarket.
- Excellent access to all areas of Greater Bakersfield via Truxtun Avenue Extension, Westside Parkway, and Highway 99.
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
$375,878
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
8.90%
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%
$7,517,560
$7.5M
Cap Rate 7%
$5,369,686
$5.4M
Cap Rate 9%
$4,176,422
$4.2M
Market Conditions
NOI Build-Up for 28,411 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
$596.6K $21.00/SF
− Vacancy
−$95.5K −$3.36/SF
EGI
$501.2K $17.64/SF
− OpEx
−$125.3K −$4.41/SF
NOI
$375.9K $13.23/SF
Area
Bakersfield, CA
Vacancy
16.00%
Lease Rate
$21.00 /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%
$7,517,560
Cap Rate 7%
$5,369,686
Cap Rate 9%
$4,176,422
Alternative Uses
Best Use
Office B
$5.37M
$4.70M – $6.26M
NOI $375,878 @ 7.0% cap · market cap 8.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.54M
$6.60M – $8.80M
NOI $527,763 @ 7.0% cap · market cap 12.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,580
Businesses Nearby
Explore this area
Business Placement
Demographics for 93309, CA
61,079
Population
23,546
Households
2.6
Avg Household Size
33
Median Age
20%
College-Educated
83%
High-School Grad
10.5 sq mi
ZIP Area
5,817
Density / Sq Mi
$62,143
Median Household Income
$36,281
Median Earnings
$1,268
Median Rent
$286,600
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?
Office building - Three-story vacant office building in the Southwest Office Market.
Where is this office building located?
The property is located at 901 Tower Way Bakersfield, CA.
What is the asking price?
The asking price for this property is $4,225,000.
What are key features of this property?
This property features: Ideal for owner/user due to fully vacant status.; Located in the heart of Bakersfield’s largest office submarket.; Excellent access to all areas of Greater Bakersfield via Truxtun Avenue Extension, Westside Parkway, and Highway 99.
