Morgan Hill, CA
Commercial Real Estate Market Trends & Data

$489 Avg asking sale price
$75,394 Avg asking lease rate
131,612 SF Avg unit lease size
38,031 SF Avg building size for sale
7.18% Average cap rate

Morgan Hill's Demographic Profile

Morgan Hill has 14,201 households and a median income of $144,418, providing context for rent absorption and tenant demand across retail and multifamily assets. A -4% five-year population trend is a key signal for evaluating long-term demand in this market.

Key Demographic Metric Value
Population 43,249
# Households 14,201
Median age 42
Median household income $144,418
Avg household size 3.0
Renter-occupied housing units 4,168
5-year population change -4%

{{marketTabHeadings[activeMarketTab]}} Market Metrics Near Morgan Hill, CA

↻ Updated Monthly

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Nearby Office Markets Avg Cost/SF Typical Size Cap Max
Morgan Hill $396 5,445 SF 3.99%
Gilroy $293 4,151 SF 3.99%
San Jose $591 16,276 SF 6.63%
Watsonville $471 9,715 SF 6.67%
Aptos $591 1,637 SF 2.84%
Nearby Industrial Markets Avg Cost/SF Typical Size Cap Max
Morgan Hill $339 62,919 SF 5.54%
Gilroy $284 46,288 SF 5.54%
San Jose $477 45,076 SF 6.63%
Watsonville $293 17,952 SF 7.50%
Nearby Retail Markets Avg Cost/SF Typical Size
Morgan Hill $560 19,550 SF
San Martin $515 26,220 SF
Gilroy $518 13,770 SF
San Jose $703 15,675 SF
Corralitos $356 8,995 SF
Nearby Multifamily Markets Avg Cost/SF Typical Size Cap Max
Morgan Hill $589 2,717 SF 4.25%
Gilroy $391 7,400 SF 5.24%
San Jose $461 8,695 SF 6.93%
Watsonville $497 10,096 SF 6.78%
Pajaro $514 17,110 SF 6.72%

Commercial Properties For Sale in Morgan Hill

The listings below reflect how current market pricing and building scale translate into active opportunities available today.
For Sale

16000-16060 Monterey Road

Morgan Hill, CA

  • Retail Building
  • $13,499,000
For Sale

8555 San Ysidro Ave

Gilroy, CA 95020

  • 69,176 SF Retail Building
  • 18.72% Cap Rate
  • $8,500,000
For Sale

16260 Church St

Morgan Hill, CA 95037

  • 16,832 SF Industrial Building
  • $4,850,000
For Sale

Richmond Ave Land

Morgan Hill, CA 95037

  • 22.81 AC Lot
  • 1 Agricultural Lot
  • $2,750,000
For Sale

700 Jarvis Dr

Morgan Hill, CA 95037

  • 54,545 SF Industrial Building
  • $10,900,000
For Sale

3115 Leavesley Rd

Gilroy, CA 95020

  • 21.39 AC Lot
  • 1 Agricultural Lot
  • $1,688,000

Average Price For Sale

↻ Updated Monthly

Average Price For Lease

↻ Updated Monthly

Number of Listings

↻ Updated Monthly

Cap Rate

↻ Updated Monthly

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Nearby Commercial Markets

Comparing nearby markets helps investors see whether Morgan Hill pricing and building scale sit above, below, or in line with surrounding areas.

Commercial Markets Avg Cost/SF Average Size
Morgan Hill $489 38,031 SF
San Martin $515 26,220 SF
Gilroy $530 27,404 SF
San Jose $562 32,619 SF
Corralitos $356 8,995 SF

Regional Demographic Comparison

This comparison places Morgan Hill alongside nearby cities to show how population size, household counts, and income levels differ across the region. Viewing these markets side by side helps investors understand whether local demand and income characteristics are concentrated in Morgan Hill or distributed across surrounding areas.

City Population # Households Age Median Household Income Avg Household Size Renter Occupied Housing Units Five Yr Pop Growth %
Morgan Hill 43,249 14,201 42 $144,418 3 4,168 -4%
San Martin 5,417 1,568 45 $131,576 3 435 -10%
Gilroy 56,103 16,417 38 $112,094 3 6,432 -4%
San Jose 946,578 306,554 39 $130,163 3 142,935 -4%
Corralitos 1,863 657 48 $128,017 3 172 -9%

Disclaimer: The figures on this page reflect LoopNet's active commercial listings in Morgan Hill, CA and update as inventory changes. Averages can shift between periods or vary across property types depending on the mix of listings available at a given time, so individual metrics may not reflect broader market trends. These figures are best used as directional benchmarks for early market evaluation. For comprehensive commercial real estate data and analytics, subscribe to CoStar.

FAQs About Commercial Investing in Morgan Hill

View All Commercial Real Estate For Sale in Morgan Hill
Is Morgan Hill a good market for a first-time commercial real estate investor?

Morgan Hill offers commercial properties across a wide range of sizes and price points. By reviewing the market data and benchmarks on this page, first-time investors can better understand what a typical commercial property looks like before committing capital and narrowing in on specific listings.

How can this market data help me decide whether to buy commercial property for my business in Morgan Hill?

The pricing and size metrics on this page help business owners compare the cost of ownership against leasing in Morgan Hill. Typical building sizes and asking prices provide a starting point for evaluating space needs, budget fit, and long term occupancy costs before engaging lenders or brokers.

What should conservative investors focus on when evaluating commercial properties in Morgan Hill?

Conservative investors often prioritize manageable deal sizes, stable pricing ranges, and cap rate benchmarks shown for Morgan Hill. These metrics help assess whether current market conditions support steady income potential without relying on aggressive assumptions.

How does Morgan Hill compare to nearby commercial real estate markets?

Nearby market comparisons highlight differences in pricing, building scale, and cap rate ranges relative to Morgan Hill. Reviewing these side by side helps experienced investors identify relative value, pricing premiums, or alternative markets that may better align with return targets.

How can this page support early-stage deal screening for Morgan Hill acquisitions?

This page provides high-level benchmarks for pricing, deal size, and observed cap rates in Morgan Hill, which are useful for initial market filtering. Institutional and data-driven investors often use these signals to prioritize listings that meet size, pricing, and return thresholds before deeper underwriting.

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