Standalone Two-Story Office
For Sale
Contact for pricing
940 N Highland Ave, Los Angeles, CA 90038
Freestanding office property offering workspace across two levels in Los Angeles.
Property Size14,036 SF
Price / SF$605.59
Days on Market96
Property Features for 940 N Highland Ave
General Information
Standard status
Active
Size
14,036 SF
Property subtype
OFFICE
Building Details
Buildings
1
Stories
2
Properties For Sale
at 940 N Highland Ave Contact us- Floor
- 1-2
- Size
- 14,036 SF
- Type
- OFFICE
- Lease Type
- MODIFIED_GROSS
- Availability
- AVAILABLE, Now
- Sublease
- No
940 N Highland Ave
Two story standalone office building.
Contact us
Listing Agency:
Lee & Associates - West L.A.
(310) 899-2719
Listed By:
Keith Fielding
(310) 899-2719
Source:
Moodyscre
Added: May 27
Changed: Aug 29
Last Checked: Aug 29 at 7:37PM
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 Lee & Associates - West L.A.
Investment Insights
Based on property information with market context.
Located at 940 N Highland Ave in Los Angeles, this freestanding office property contains 14,036 square feet arranged across two stories. The standalone configuration provides a dedicated commercial building for office use.
Key Highlights
- 14,036‑square‑foot office building
- Two‑story configuration
- Standalone commercial property
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
$333,162
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
3.92%
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%
$6,663,240
$6.7M
Cap Rate 7%
$4,759,457
$4.8M
Cap Rate 9%
$3,701,800
$3.7M
Market Conditions
NOI Build-Up for 14,036 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
$545.7K $38.88/SF
− Vacancy
−$101.5K −$7.23/SF
EGI
$444.2K $31.65/SF
− OpEx
−$111.1K −$7.91/SF
NOI
$333.2K $23.74/SF
Area
Los Angeles, CA
Vacancy
18.60%
Lease Rate
$38.88 /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%
$6,663,240
Cap Rate 7%
$4,759,457
Cap Rate 9%
$3,701,800
Alternative Uses
Best Use
Office B
$4.76M
$4.16M – $5.55M
NOI $333,162 @ 7.0% cap · market cap 3.92%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$284.36M
$248.82M – $331.75M
NOI $19,905,265 @ 7.0% cap · market cap 234.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,625
Businesses Nearby
Explore this area
Business Placement
Demographics for 90038, CA
27,414
Population
14,998
Households
1.8
Avg Household Size
36
Median Age
41%
College-Educated
76%
High-School Grad
1.5 sq mi
ZIP Area
18,276
Density / Sq Mi
$61,566
Median Household Income
$36,844
Median Earnings
$1,764
Median Rent
$1,089,200
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?
Office building - Freestanding office property offering workspace across two levels in Los Angeles.
Where is this office building located?
The property is located at 940 N Highland Ave Los Angeles, CA.
What is the asking price?
The asking price for this property is $8,500,000.
What are key features of this property?
This property features: 14,036‑square‑foot office building; Two‑story configuration; Standalone commercial property
