Professional Office Space in
For Sale
$495,000
L-737 Southpoint Blvd, Petaluma, CA 94954
Well-appointed office suite in Southpoint Business Park.
Property Size2,220 SF
Price / SF$222.97
Days on Market97
Property Features for L-737 Southpoint Blvd
General Information
Standard status
Active
Size
2,220 SF
Listing Agency:
Sterling California Properties
(707) 523-4300
Listed By:
Marshall Mello · License #01815138
Source:
Exprealty
Added: May 6
Changed: Aug 8
Last Checked: Aug 8 at 7:23AM
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 Sterling California Properties
Investment Insights
Based on property information with market context.
Located in the heart of Southpoint Business Park in East Petaluma, this 2,220 square foot office suite offers a professional environment suitable for various businesses. The suite features a sophisticated glass-front entrance with large floor-to-ceiling windows that provide natural light. The welcoming reception area includes a built-in reception desk and a client waiting area. A wide, well-lit corridor lined with glass-paneled private offices extends throughout the suite, offering an open feel while maintaining privacy. The suite includes six generously sized private offices, one of which can be configured as a conference or meeting room. A dedicated technology and server room caters to businesses requiring robust connectivity. A well-equipped break room with upper cabinetry provides a convenient space for staff. A dedicated storage room offers practical space for files, supplies, and equipment. Two private restrooms are also included. Southpoint Business Park is centrally located in East Petaluma, accessed by North McDowell Boulevard, with convenient access to shopping, dining, and services. Its proximity to Highway 101 provides visibility and accessibility for employees and clients.
Key Highlights
- Premier office space in the heart of Southpoint Business Park, East Petaluma.
- Easy access to Highway 101 and North McDowell Boulevard.
- 2,220 square foot suite with 6 private offices, one configurable as a conference room.**
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
$31,345
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
6.33%
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%
$626,900
$626.9K
Cap Rate 7%
$447,786
$447.8K
Cap Rate 9%
$348,278
$348.3K
Market Conditions
NOI Build-Up for 2,220 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
$49.3K $22.20/SF
− Vacancy
−$7.5K −$3.37/SF
EGI
$41.8K $18.83/SF
− OpEx
−$10.4K −$4.71/SF
NOI
$31.3K $14.12/SF
Area
Sonoma County, CA
Vacancy
15.20%
Lease Rate
$22.20 /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%
$626,900
Cap Rate 7%
$447,786
Cap Rate 9%
$348,278
Alternative Uses
Best Use
Office B
$447.8K
$391.8K – $522.4K
NOI $31,345 @ 7.0% cap · market cap 6.33%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$601.6K
$526.4K – $701.8K
NOI $42,110 @ 7.0% cap · market cap 8.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
793
Businesses Nearby
Explore this area
Business Placement
Demographics for 94954, CA
38,301
Population
15,147
Households
2.5
Avg Household Size
43
Median Age
37%
College-Educated
92%
High-School Grad
62.2 sq mi
ZIP Area
616
Density / Sq Mi
$107,564
Median Household Income
$58,362
Median Earnings
$2,405
Median Rent
$790,100
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 units - Well-appointed office suite in Southpoint Business Park.
Where is this office units located?
The property is located at L-737 Southpoint Blvd Petaluma, CA.
What is the asking price?
The asking price for this property is $495,000.
What are key features of this property?
This property features: Premier office space in the heart of Southpoint Business Park, East Petaluma.; Easy access to Highway 101 and North McDowell Boulevard.; 2,220 square foot suite with 6 private offices, one configurable as a conference room.**
