Cap Rates by Bay Area Submarket — May 2026
What cap rates actually look like across Silicon Valley submarkets in mid-2026, by property type. Submarket-grade data for office, industrial, flex/R&D, retail, and multifamily across Palo Alto, Mountain View, Sunnyvale, Santa Clara, San Jose, Milpitas, and Fremont.
Cap Rates Explained: How to Evaluate Commercial Real Estate Investments
A capitalization rate (cap rate) is the ratio of a commercial property’s net operating income (NOI) to its purchase price, expressed as a percentage. The formula: Cap Rate = NOI / Purchase Price. A property generating $150,000 in annual NOI purchased for $2,000,000 has a cap rate of 7.5%. In Silicon Valley, commercial cap rates […]
Understanding Triple Net Leases: A Guide for Commercial Tenants and Landlords
A triple net lease (NNN lease) is a commercial lease structure where the tenant pays base rent plus their proportional share of three operating expenses: property taxes, building insurance, and common area maintenance (CAM). In Silicon Valley, NNN charges typically add $0.50 to $2.00+ per square foot per month on top of the base rent, […]
The Complete Guide to 1031 Exchanges in California
What Is a 1031 Exchange? A 1031 exchange is a tax-deferral strategy under Section 1031 of the Internal Revenue Code that allows commercial real estate investors to sell one investment property and reinvest the proceeds into a “like-kind” replacement property, deferring 100% of the capital gains tax that would otherwise be owed at closing. In […]