Mixed-Use Commercial Building in
For Sale
$595,000
1-6-364 Gifford St, Falmouth, MA 02540
Mixed-use building with income potential in downtown Falmouth.
Property Size2,947 SF
Price / SF$201.90
Days on Market233
Property Features for 1-6-364 Gifford St
General Information
Standard status
Active
Size
2,947 SF
Taxes and HOA fees
Annual Taxes
$4,495
Listing Agency:
Berkshire Hathaway HomeServices Robert Paul Properties
(508) 540-9800
Listed By:
O'Neill Group
(508) 524-7325
Source:
Exprealty
Added: Jan 12
Changed: Aug 20
Last Checked: Sep 1 at 8:14PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Berkshire Hathaway HomeServices Robert Paul Properties
Investment Insights
Based on property information with market context.
Located in downtown Falmouth, this mixed-use commercial building offers an investment or owner-user opportunity. The free-standing building is part of a condominium association and comprises 6 units across three levels, with two units per level. Four of the six units are currently occupied, providing income potential. The building totals approximately 2,947 square feet and allows for a variety of uses including residential, retail sales, and business or professional offices. Utilities include private septic, Town water, and natural gas. The property is located minutes from Falmouth Hospital.
Key Highlights
- Prime downtown Falmouth location.
- Mixed‑use commercial building with flexible zoning (residential, retail, office).
- Existing income potential with 4 of 6 units currently occupied.
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
$41,111
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
6.91%
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%
$822,220
$822.2K
Cap Rate 7%
$587,300
$587.3K
Cap Rate 9%
$456,789
$456.8K
Market Conditions
NOI Build-Up for 2,947 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
$70.7K $24.00/SF
− Vacancy
−$5.0K −$1.68/SF
EGI
$65.8K $22.32/SF
− OpEx
−$24.7K −$8.37/SF
NOI
$41.1K $13.95/SF
Area
Barnstable County, MA
Vacancy
7.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$822,220
Cap Rate 7%
$587,300
Cap Rate 9%
$456,789
Alternative Uses
Best Use
Mixed Use
$587.3K
$513.9K – $685.2K
NOI $41,111 @ 7.0% cap · market cap 6.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $84,064 @ 7.0% cap · market cap 14.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,046
Businesses Nearby
Explore this area
Business Placement
Demographics for 02540, MA
8,450
Population
6,200
Households
1.4
Avg Household Size
61
Median Age
59%
College-Educated
94%
High-School Grad
11.0 sq mi
ZIP Area
768
Density / Sq Mi
$88,266
Median Household Income
$52,243
Median Earnings
$1,328
Median Rent
$756,300
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use building with income potential in downtown Falmouth.
Where is this mixed-use property located?
The property is located at 1-6-364 Gifford St Falmouth, MA.
What is the asking price?
The asking price for this property is $595,000.
What are key features of this property?
This property features: Prime downtown Falmouth location.; Mixed‑use commercial building with flexible zoning (residential, retail, office).; Existing income potential with 4 of 6 units currently occupied.
