Building Details

Year built 2003

Number of units 7

Listing Agency: First Hampton Int'l Realty LLC Show Phone

Listed By: Lawrence Citarelli · License #L3532932 Show Phone

Added: Sep 12, 2022 Changed: Sep 2 Last Checked: Sep 4 at 10:06AM

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MLS# L3429590

Copyright © 2026 OneKey MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This 13,000-square-foot flex property was built in 2003 and is fully occupied. The commercial-zoned building is identified for a broad mix of applications, including specialty trade, contractor, warehouse, storage, office, industrial, showroom, retail, professional, and creative uses. The configuration is suited to users seeking a combination of functional workspace and commercial operations.

The property occupies 1 acre at 137 Montauk Highway in Westhampton, Suffolk County, New York. Heating is provided by propane, and the property is served by a septic tank. Full occupancy is reported, with solid leases and escalations noted in the property information.

Key Highlights

• 13,000‑square‑foot flex property
• 100% occupied; 0% vacancy reported
• Commercial zoning designation

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

$199,218

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

3.81%

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%

$3,984,360 $4.0M

Cap Rate 7%

$2,845,971 $2.8M

Cap Rate 9%

$2,213,533 $2.2M

Market Conditions

NOI Build-Up for 13,000 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

$249.6K $19.20/SF

− Vacancy

−$15.2K −$1.17/SF

EGI

$234.4K $18.03/SF

− OpEx

−$35.2K −$2.70/SF

NOI

$199.2K $15.32/SF

Area

Suffolk County, NY

Vacancy

6.10%

Lease Rate

$19.20 /SF/Yr

Expense Ratio

15.00%

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%

$3,984,360

Cap Rate 7%

$2,845,971

Cap Rate 9%

$2,213,533

Alternative Uses

Best Use

Warehouse

$2.85M

$2.49M – $3.32M (±1% cap)

NOI $199,218 @ 7.0% cap · market cap 3.81%

Second Best

Industrial

$2.64M

$2.31M – $3.08M (±1% cap)

NOI $184,570 @ 7.0% cap · market cap 3.53%

Theoretical Best

Office A

$3.96M

$3.47M – $4.62M (±1% cap)

NOI $277,228 @ 7.0% cap · market cap 5.30%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Next Level Auto ... Interior Design Remodel Showroom Hardware & Home Improvement General Home Solution Consultant Dune Millwork Association Or Organization

Suggested Use

Top Pick Building Supply Parking Lot & Garage Law Firm HVAC Service Electrical Service Dental Office

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

100%

Occupancy

Location Intelligence

Trade Area within ½ mile

83

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 11977, NY

2,837

Population

1,594

Households

1.8

Avg Household Size

51

Median Age

57%

College-Educated

94%

High-School Grad

5.7 sq mi

ZIP Area

498

Density / Sq Mi

$156,406

Median Household Income

$52,500

Median Earnings

$2,031

Median Rent

$1,039,300

Median Home Value

Market

Vacancy Rate% for Industrial in Northeast region

5.4% 2019

4.6% 2020

3.2% 2021

3.3% 2022

5.3% 2023

6.6% 2024

7.6% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this flex space located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - Commercially zoned property with warehouse, office, industrial, storage, and showroom use categories identified.

Where is this flex space located?

The property is located at 137 Montauk Highway West Hampton, NY.

What is the asking price?

The asking price for this property is $5,230,000.

What are key features of this property?

This property features: 13,000‑square‑foot flex property; 100% occupied; 0% vacancy reported; Commercial zoning designation