Petaluma, CA
Commercial Real Estate Market Trends & Data

$335 Avg asking sale price
$21 Avg asking lease rate
74,203 SF Avg unit lease size
36,129 SF Avg building size for sale
4.69% Average cap rate

Petaluma's Demographic Profile

Petaluma has 23,217 households and a median income of $111,755, providing context for rent absorption and tenant demand across retail and multifamily assets. A -1% five-year population trend is a key signal for evaluating long-term demand in this market.

Key Demographic Metric Value
Population 59,731
# Households 23,217
Median age 45
Median household income $111,755
Avg household size 3.0
Renter-occupied housing units 8,769
5-year population change -1%

{{marketTabHeadings[activeMarketTab]}} Market Metrics Near Petaluma, CA

↻ Updated Monthly

{{marketTabDescriptions[activeMarketTab]}}

Nearby Office Markets Avg Cost/SF Typical Size Cap Max
Petaluma $352 17,232 SF 4.18%
Novato $293 4,495 SF 6.36%
Sonoma $618 2,781 SF 3.65%
Nearby Retail Markets Avg Cost/SF Typical Size
Petaluma $408 9,093 SF
Cotati $395 5,544 SF
Penngrove $333 10,500 SF
Rohnert Park $402 6,714 SF
Novato $1,278 1,800 SF
Nearby Multifamily Markets Avg Cost/SF Typical Size Cap Max
Petaluma $576 9,360 SF 5.20%
Cotati $358 31,472 SF 6.25%
Rohnert Park $274 27,026 SF 6.25%
Novato $305 15,909 SF 5.71%

Commercial Properties For Sale in Petaluma

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

1000 Lakeville St

Petaluma, CA 94952

  • 24,100 SF Retail Building
  • $4,300,000
For Sale

Parkhearst Estate

Petaluma, CA 94952

  • 9,360 SF Multifamily
  • 5.20% Cap Rate
  • $5,390,000
For Sale

Unit 104-14,298 SF

Petaluma, CA 94952

  • 73,800 SF Industrial Building
  • $2,700,000
For Sale

Professional Office Condo Units for Sale

Petaluma, CA 94954

  • 5,570 SF Office Building
  • $735,000
For Sale

2180 S McDowell Blvd

Petaluma, CA 94954

  • 43,439 SF Industrial Building
  • $8,687,800
For Sale

1436 Western Ave

Petaluma, CA 94952

  • 16.06 AC Lot
  • 1 Residential Income Lot
  • $1,950,000

Average Price For Sale

↻ Updated Monthly

Average Price For Lease

↻ Updated Monthly

Number of Listings

↻ Updated Monthly

Cap Rate

↻ Updated Monthly

How Investors Evaluate Commercial Real Estate Markets

Multifamily vs. Single-Family Investing ROI
Multifamily vs. Single-Family Investing ROI
Multifamily vs single-family investing compared across cash flow, vacancy risk, financing, management complexity, and ROI to help investors evaluate returns and downside risk by property type.
CapEx in Commercial Real Estate
CapEx in Commercial Real Estate
How to plan capital expenditures, prioritize projects, and manage risk without sacrificing returns on your commercial property investment.
Internal Rate of Return (IRR) Calculator
Internal Rate of Return (IRR) Calculator
Use this calculator to measure annualized returns, compare investment scenarios, and evaluate risk across commercial real estate deals.
What is a Ground Lease?
What is a Ground Lease?
Understanding the Nuances of Ground and Land Leases
Master Lease Strategies
Master Lease Strategies
Maximizing Control and Income with Flexible Leasing Solutions
How to Find Industrial Tenants for Your Property
How to Find Industrial Tenants for Your Property
A practical guide to finding qualified industrial tenants, from building your tenant profile to tenant screening and closing the lease.
Bonus Depreciation
Bonus Depreciation
A practical guide to using bonus depreciation to reduce tax liability, improve cash flow, and plan property improvements with timing strategies in mind.
Accelerated Depreciation in Commercial Real Estate
Accelerated Depreciation in Commercial Real Estate
Understand how accelerated depreciation works, which method fits your deal, and how to avoid the tax pitfalls that catch most investors off guard.

Nearby Commercial Markets

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

Commercial Markets Avg Cost/SF Average Size
Petaluma $335 36,129 SF
Cotati $338 11,447 SF
Penngrove $320 12,099 SF
Rohnert Park $325 110,805 SF
Novato $380 13,204 SF

Regional Demographic Comparison

This comparison places Petaluma 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 Petaluma or distributed across surrounding areas.

City Population # Households Age Median Household Income Avg Household Size Renter Occupied Housing Units Five Yr Pop Growth %
Petaluma 59,731 23,217 45 $111,755 3 8,769 -1%
Cotati 7,643 3,075 42 $92,148 3 1,345 -1%
Penngrove 1,785 747 51 $96,874 2 258 -10%
Novato 52,346 20,222 48 $107,218 3 6,901 -2%

Disclaimer: The figures on this page reflect LoopNet's active commercial listings in Petaluma, 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 Petaluma

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

Petaluma 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 Petaluma?

The pricing and size metrics on this page help business owners compare the cost of ownership against leasing in Petaluma. 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 Petaluma?

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

How does Petaluma compare to nearby commercial real estate markets?

Nearby market comparisons highlight differences in pricing, building scale, and cap rate ranges relative to Petaluma. 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 Petaluma acquisitions?

This page provides high-level benchmarks for pricing, deal size, and observed cap rates in Petaluma, 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.

Nearby Cities
Commercial Market Reports