The current median sales price for office space in Santa Rosa is approximately $197 per foot. Though this quarter has seen a 1% increase from the previous quarter, it is still a 3.3% decrease from last year’s prices. This information shows us that it is still a great time for groups looking to purchase in the Santa Rosa office. As the graph indicates, it was only six year ago when the median sales price was over $300 per foot.
There are numerous owner-user opportunities of varying sizes for a buyer to purchase a building and operate their business. The SBA loan program offers a chance for business owners to be able to purchase a building with a smaller down payment than a conventional loan. To qualify for an SBA loan, the buyer must occupy at least 51% of a building. This gives buyers the option to not only look at single tenant buildings to purchase, but to also take a look at multi tenant buildings where the buyer could get additional income from other tenants in the building.
Though the owner-user market accounts for the majority of office buildings available for sale, there are certainly investment opportunities in the Santa Rosa market. We are seeing cap rates ranging from 6% – 8% with varying types of product including single tenant buildings with long term leases as well as multi tenant buildings. It is a great time to buy office in Santa Rosa, and I would be glad to answer any questions that you have.