Turnkey Office Near Downtown
For Sale
$1,750,000
Meridian Avenue, San Jose, CA 95125
Strategically located office building near Downtown Willow Glen district.
Property Size1,975 SF
Lot Size0.17 Acres
Price / SF$886.08
Days on Market404
Property Features for Meridian Avenue
General Information
Standard status
Active
Size
1,975 SF
Lot size
0.17 Acres
Property subtype
Commercial
Amenities
Customized Wheelchair Accessible
Shingle Roof
Building Details
Year Built
1946
Listing Agency:
MARCUS & MILLICHAP
(650) 391-1824
Listed By:
MITCHELL ZURICH · License #01870648
Source:
Corcoran
Added: Jul 25, 2025
Changed: Aug 31
Last Checked: Aug 31 at 4:48PM
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 MARCUS & MILLICHAP
Investment Insights
Based on property information with market context.
This turnkey office building is strategically located near the vibrant Downtown Willow Glen district, offering convenient access to restaurants, cafes, boutiques, and entertainment venues. Its central location provides easy access to Interstate 280, State Route 17, and State Route 87. The 1,975 square-foot property features a secure, gated parking lot with six dedicated spaces, including one ADA-accessible stall. The building underwent significant upgrades in 2013, including a new roof, solar system, upgraded electrical panel, dual pane windows, and ADA-compliant enhancements. The office was recently upgraded with a new air conditioner and heater. The interior offers a combination of residential charm and office functionality, including a full kitchen, bathroom with shower, laundry area, and a fireplace. It is suitable for professional service users, medical, or creative office use.
Key Highlights
- Turnkey owner/user opportunity in a highly desirable location near Downtown Willow Glen.
- Recent significant upgrades including a new roof, solar system, upgraded electrical panel, dual pane windows, and ADA‑compliant enhancements.
- Convenient access to Interstate 280, State Route 17, and State Route 87.
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
$69,479
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
3.97%
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%
$1,389,580
$1.4M
Cap Rate 7%
$992,557
$992.6K
Cap Rate 9%
$771,989
$772.0K
Market Conditions
NOI Build-Up for 1,975 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
$110.7K $56.04/SF
− Vacancy
−$18.0K −$9.13/SF
EGI
$92.6K $46.91/SF
− OpEx
−$23.2K −$11.73/SF
NOI
$69.5K $35.18/SF
Area
ZIP 95125
Vacancy
16.30%
Lease Rate
$56.04 /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%
$1,389,580
Cap Rate 7%
$992,557
Cap Rate 9%
$771,989
Alternative Uses
Best Use
Office B
$992.6K
$868.5K – $1.16M
NOI $69,479 @ 7.0% cap · market cap 3.97%
Second Best
Healthcare Medical
$520.5K
$455.4K – $607.2K
NOI $36,432 @ 7.0% cap · market cap 2.08%
Theoretical Best
Office A
$1.19M
$1.04M – $1.39M
NOI $83,493 @ 7.0% cap · market cap 4.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,810
Businesses Nearby
Explore this area
Business Placement
Demographics for 95125, CA
54,000
Population
22,151
Households
2.4
Avg Household Size
41
Median Age
56%
College-Educated
91%
High-School Grad
7.3 sq mi
ZIP Area
7,397
Density / Sq Mi
$148,422
Median Household Income
$77,440
Median Earnings
$2,394
Median Rent
$1,646,000
Median Home Value
Market
Vacancy Rate% for Office in San Jose, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Strategically located office building near Downtown Willow Glen district.
Where is this office building located?
The property is located at Meridian Avenue San Jose, CA.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: Turnkey owner/user opportunity in a highly desirable location near Downtown Willow Glen.; Recent significant upgrades including a new roof, solar system, upgraded electrical panel, dual pane windows, and ADA‑compliant enhancements.; Convenient access to Interstate 280, State Route 17, and State Route 87.
