Renovated Mixed-Use Commercial
For Sale
$675,000
1 Merrimac Street Unit 7, Newburyport, MA 01950
Street-level commercial condominium with a flexible layout, signage rights, and direct access to downtown amenities.
Property Size1,984 SF
Price / SF$809.35
Days on Market12
Property Features for 1 Merrimac Street Unit 7
General Information
Standard status
Active
Size
1,984 SF
Property subtype
Commercial
Additional Details
Floor
Street Level
Amenities
exterior signage rights
high-speed internet and cable
kitchenette
full bathroom with shower
custom built-in cabinetry
utility closet
Building Details
Building Size
1,984 SF
Year Built
1984
Listing Agency:
Compass
(978) 248-8081
Listed By:
The Bakhtiari Group
(603) 560-5357
Source:
Iverty
Added: Sep 14
Changed: Sep 24
Last Checked: Sep 24 at 8:50AM
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 Compass
Investment Insights
Based on property information with market context.
This 834-square-foot mixed-use commercial condominium occupies a street-level position at 1 Merrimac Street, Unit 7. The single-level interior includes a reception and work area, separate meeting and conference spaces, custom built-in cabinetry, a kitchenette, a full bathroom with shower, and a utility closet for storage. Exposed brick veneer, plank accents, wood-look tile flooring, and a custom conference table contribute to the finished interior. High-speed internet and cable wiring extend throughout the unit.
The property is positioned in downtown Newburyport at Market Square, overlooking Waterfront Park, with exterior signage rights and convenient access to the Green Street municipal parking lot through the rear entrance. The space was recently renovated and is offered for sale, with lease availability also noted. Built in 1984, the condominium is configured for professional office, consulting, creative, or boutique retail use.
The property is positioned in downtown Newburyport at Market Square, overlooking Waterfront Park, with exterior signage rights and convenient access to the Green Street municipal parking lot through the rear entrance. The space was recently renovated and is offered for sale, with lease availability also noted. Built in 1984, the condominium is configured for professional office, consulting, creative, or boutique retail use.
Key Highlights
- 834 SF street‑level mixed‑use commercial condominium
- Recently renovated single‑level interior with reception, conference, kitchenette, and full bathroom
- Exterior signage rights at 1 Merrimac Street, Unit 7
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
$23,246
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
3.44%
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%
$464,920
$464.9K
Cap Rate 7%
$332,086
$332.1K
Cap Rate 9%
$258,289
$258.3K
Market Conditions
NOI Build-Up for 834 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
$38.0K $45.60/SF
− Vacancy
−$7.0K −$8.44/SF
EGI
$31.0K $37.16/SF
− OpEx
−$7.7K −$9.29/SF
NOI
$23.2K $27.87/SF
Area
Essex County, MA
Vacancy
18.50%
Lease Rate
$45.60 /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%
$464,920
Cap Rate 7%
$332,086
Cap Rate 9%
$258,289
Alternative Uses
Best Use
Office B
$332.1K
$290.6K – $387.4K
NOI $23,246 @ 7.0% cap · market cap 3.44%
Second Best
Mixed Use
$241.3K
$211.1K – $281.5K
NOI $16,889 @ 7.0% cap · market cap 2.50%
Theoretical Best
Office A
$493.7K
$432.0K – $576.0K
NOI $34,561 @ 7.0% cap · market cap 5.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,763
Businesses Nearby
Explore this area
Business Placement
Demographics for 01950, MA
18,289
Population
8,298
Households
2.2
Avg Household Size
50
Median Age
66%
College-Educated
98%
High-School Grad
8.4 sq mi
ZIP Area
2,177
Density / Sq Mi
$144,259
Median Household Income
$85,573
Median Earnings
$1,511
Median Rent
$792,400
Median Home Value
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Market
Vacancy Rate% for Office in Northeast region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Street-level commercial condominium with a flexible layout, signage rights, and direct access to downtown amenities.
Where is this mixed-use property located?
The property is located at 1 Merrimac Street Unit 7 Newburyport, MA.
What is the asking price?
The asking price for this property is $675,000.
What are key features of this property?
This property features: 834 SF street‑level mixed‑use commercial condominium; Recently renovated single‑level interior with reception, conference, kitchenette, and full bathroom; Exterior signage rights at 1 Merrimac Street, Unit 7
