Oakland Commercial Building For
For Sale
$840,000
954 86Th Ave, Oakland, CA 94621
Commercial building suitable for light industrial, manufacturing, warehousing, or auto service.
Property Size3,332 SF
Price / SF$252.10
Days on Market216
Property Features for 954 86Th Ave
General Information
Standard status
Active
Size
3,332 SF
Property subtype
Commercial
Amenities
Other
Rolled Composition Roof
Street Parking
Building Details
Year Built
1968
Listing Agency:
BCRE
(510) 222-0900
Listed By:
EDDER BARCENAS-CORTEZ
Source:
Corcoran
Added: Jan 6
Changed: Aug 8
Last Checked: Apr 5 at 9:06PM
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 BCRE
Investment Insights
Based on property information with market context.
This commercial property in Oakland presents an opportunity for business owners or investors. It is suitable for owner occupancy or investment purposes, with potential uses including light industrial, light manufacturing, warehousing, storage, and auto service. The property includes office space, storage areas, a full bathroom, and a half bathroom. Updates have been made to the electrical panels, roof, and tankless water heater. The building offers potential for long-term stability and business growth.
Key Highlights
- Suitable for various business purposes including light industrial, light manufacturing, warehousing, storage, and auto service.
- Opportunity for owner‑occupancy or investment.
- Includes office space and storage areas, plus a full and half bathroom.
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
$64,605
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
7.69%
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%
$1,292,100
$1.3M
Cap Rate 7%
$922,929
$922.9K
Cap Rate 9%
$717,833
$717.8K
Market Conditions
NOI Build-Up for 3,332 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
$97.6K $29.28/SF
− Vacancy
−$5.3K −$1.58/SF
EGI
$92.3K $27.70/SF
− OpEx
−$27.7K −$8.31/SF
NOI
$64.6K $19.39/SF
Area
Oakland, CA
Vacancy
5.40%
Lease Rate
$29.28 /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%
$1,292,100
Cap Rate 7%
$922,929
Cap Rate 9%
$717,833
Alternative Uses
Best Use
Retail
$922.9K
$807.6K – $1.08M
NOI $64,605 @ 7.0% cap · market cap 7.69%
Second Best
Warehouse
$707.1K
$618.7K – $825.0K
NOI $49,499 @ 7.0% cap · market cap 5.89%
Theoretical Best
Multifamily LT 5
$1.09M
$954.5K – $1.27M
NOI $76,362 @ 7.0% cap · market cap 9.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
904
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 94621, CA
35,816
Population
11,078
Households
3.2
Avg Household Size
32
Median Age
13%
College-Educated
67%
High-School Grad
8.5 sq mi
ZIP Area
4,214
Density / Sq Mi
$53,106
Median Household Income
$35,199
Median Earnings
$1,527
Median Rent
$537,600
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Commercial building suitable for light industrial, manufacturing, warehousing, or auto service.
Where is this flex space located?
The property is located at 954 86Th Ave Oakland, CA.
What is the asking price?
The asking price for this property is $840,000.
What are key features of this property?
This property features: Suitable for various business purposes including light industrial, light manufacturing, warehousing, storage, and auto service.; Opportunity for owner‑occupancy or investment.; Includes office space and storage areas, plus a full and half bathroom.
