Industrial Building with Redevelopment
For Sale
$635,000
1 S Mason Street, Salem, MA 01970
One-story industrial building in active commercial area with redevelopment potential.
Property Size2,160 SF
Price / SF$293.98
Days on Market246
Property Features for 1 S Mason Street
General Information
Standard status
Active
Size
2,160 SF
Property subtype
Commercial
Building Details
Year Built
1955
Listing Agency:
The Drumlin Group Inc.
(978) 741-3696
Listed By:
David Hark · License #9010260
Source:
Stevebremis
Added: Dec 6, 2025
Changed: Aug 8
Last Checked: Jul 16 at 12:29PM
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 The Drumlin Group Inc.
Investment Insights
Based on property information with market context.
This one-story, steel-framed industrial building features three drive-in doors and an open layout without columns. Situated in an active commercial area undergoing redevelopment with planned residential and commercial construction projects, the 2160 square foot property presents various opportunities. While the building requires renovations, it is suitable for light industrial or "maker space" uses. Automotive service is not permitted under the North River Corridor zoning. However, the zoning allows for residential and combined residential/commercial uses, either "by right" or by "special permit".
Key Highlights
- Redevelopment area location with planned residential and commercial projects.
- Zoning allows for residential or combined residential/commercial uses (by right or special permit).
- Wide‑open interior space with no columns.
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
$37,686
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
5.93%
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%
$753,720
$753.7K
Cap Rate 7%
$538,371
$538.4K
Cap Rate 9%
$418,733
$418.7K
Market Conditions
NOI Build-Up for 2,160 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
$62.2K $28.80/SF
− Vacancy
−$4.2K −$1.96/SF
EGI
$58.0K $26.84/SF
− OpEx
−$20.3K −$9.39/SF
NOI
$37.7K $17.45/SF
Area
Essex County, MA
Vacancy
6.80%
Lease Rate
$28.80 /SF/Yr
Expense Ratio
35.00%
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%
$753,720
Cap Rate 7%
$538,371
Cap Rate 9%
$418,733
Alternative Uses
Best Use
Flex RnD
$538.4K
$471.1K – $628.1K
NOI $37,686 @ 7.0% cap · market cap 5.93%
Second Best
Warehouse
$398.6K
$348.7K – $465.0K
NOI $27,899 @ 7.0% cap · market cap 4.39%
Theoretical Best
Office A
$1.28M
$1.12M – $1.49M
NOI $89,510 @ 7.0% cap · market cap 14.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,233
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 01970, MA
44,451
Population
20,920
Households
2.1
Avg Household Size
39
Median Age
50%
College-Educated
92%
High-School Grad
8.2 sq mi
ZIP Area
5,421
Density / Sq Mi
$85,189
Median Household Income
$52,024
Median Earnings
$1,800
Median Rent
$497,500
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Ken Rothwell's Custom Catering — 7 Franklin St # 6, Salem, MA 01970
- Country Club Caterers — Salem, MA 01970
- Hawthorne Catering Co — 18 Washington Square, Salem, MA 01970
- Salem Gnu Kitchen — 62 Wharf St, Salem, MA 01970
Frequently Asked Questions
What type of property is this?
Flex space - One-story industrial building in active commercial area with redevelopment potential.
Where is this flex space located?
The property is located at 1 S Mason Street Salem, MA.
What is the asking price?
The asking price for this property is $635,000.
What are key features of this property?
This property features: Redevelopment area location with planned residential and commercial projects.; Zoning allows for residential or combined residential/commercial uses (by right or special permit).; Wide‑open interior space with no columns.
