Listing Agency: Compass L***@compass.com Show Phone

Listed By: Jeffrey Sztorc · License #10401279108 Show Phone

Added: Sep 22, 2024 Changed: Aug 19 Last Checked: Aug 24 at 7:06AM

Report an Issue

MLS# 11346033

Copyright © 2026 My State 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 flex-space property at 342 Montauk Highway combines 27,214 square feet across four connected buildings and an enclosed section on 0.62 acres. The configuration includes a 2,590-square-foot office building with three private offices, a conference room, kitchen, and workstations, along with warehouse areas featuring loading docks and roll doors. Ceiling heights range from 19 feet to 29 feet, and a 3,723-square-foot covered loading area connects the office and warehouse components.

The property is positioned along Montauk Highway in Wainscott and is zoned Commercial/Industrial (CI). Highway-facing access supports private on-site parking and direct circulation through the complex. The layout includes multiple loading areas and interconnected structures, providing a combination of administrative, storage, and operational space within one site.

Key Highlights

• 27,214 SF across four interconnected buildings and an enclosed section
• 0.62‑acre site with Montauk Highway frontage in Wainscott
• Commercial/Industrial (CI) zoning

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

$467,956

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

5.20%

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%

$9,359,120 $9.4M

Cap Rate 7%

$6,685,086 $6.7M

Cap Rate 9%

$5,199,511 $5.2M

Market Conditions

NOI Build-Up for 27,214 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

$760.9K $27.96/SF

− Vacancy

−$137.0K −$5.03/SF

EGI

$623.9K $22.93/SF

− OpEx

−$156.0K −$5.73/SF

NOI

$468.0K $17.20/SF

Area

Suffolk County, NY

Vacancy

18.00%

Lease Rate

$27.96 /SF/Yr

Expense Ratio

25.00%

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%

$9,359,120

Cap Rate 7%

$6,685,086

Cap Rate 9%

$5,199,511

Alternative Uses

Best Use

Office B

$6.69M

$5.85M – $7.80M (±1% cap)

NOI $467,956 @ 7.0% cap · market cap 5.20%

Second Best

Warehouse

$5.96M

$5.21M – $6.95M (±1% cap)

NOI $417,040 @ 7.0% cap · market cap 4.64%

Theoretical Best

Office A

$8.29M

$7.25M – $9.67M (±1% cap)

NOI $580,345 @ 7.0% cap · market cap 6.45%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Home Sweet Home ... Moving Company

Suggested Use

Top Pick HVAC Service Plumbing Service (Bike/Boat/Book/etc) Store Auto Repair Shop Garden Center Grocery & Convenience Store

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

29 ft

Clear height

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

190

Businesses Nearby

Explore this area Business Placement

Demographics for 11937, NY

19,968

Population

14,277

Households

1.4

Avg Household Size

45

Median Age

52%

College-Educated

92%

High-School Grad

37.1 sq mi

ZIP Area

538

Density / Sq Mi

$122,489

Median Household Income

$49,954

Median Earnings

$2,904

Median Rent

$1,009,100

Median Home Value

Market

Vacancy Rate% for Office in Northeast region

13.1% 2019

15.4% 2020

17.6% 2021

19.1% 2022

20.2% 2023

20.9% 2024

19.9% 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?

Ask Rey about this property ...

Similar Off Market Nearby

• SOFO Sandwich Co. — 84 Wainscott NW Rd, Wainscott, NY 11975
• The Seafood Shop Catering Company — 356 Montauk Hwy 2nd floor suite, Wainscott, NY 11975

Frequently Asked Questions

What type of property is this?

Flex space - Interconnected office and warehouse areas are linked by covered loading access.

Where is this flex space located?

The property is located at 342 Montauk Highway Wainscott, NY.

What is the asking price?

The asking price for this property is $8,995,000.

What are key features of this property?

This property features: 27,214 SF across four interconnected buildings and an enclosed section; 0.62‑acre site with Montauk Highway frontage in Wainscott; Commercial/Industrial (CI) zoning