Renovated Office
For Sale
$749,900
1007 Union Boulevard, Allentown, PA 18109
Occupied by a district court under a gross lease with annual increases.
Property Size4,228 SF
Price / SF$177.37
Days on Market234
Property Features for 1007 Union Boulevard
General Information
Standard status
Active
Size
4,228 SF
Property subtype
Office
Zoning
B-3 Highway Business
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$13,057
Building Details
Building Size
4,228 SF
Year Built
1959
Buildings
1
Tenancy
Single
Owner Occupied
No
Listing Agency:
Keller Williams Allentown
(610) 435-1800
Listed By:
Ayon A. Codner · License #RS324477
Source:
Bhhspaulfordrealtors
Added: Jan 6
Changed: Aug 3
Last Checked: Aug 26 at 2:09PM
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 Keller Williams Allentown
Investment Insights
Based on property information with market context.
This 4,228-square-foot office building at 1007 Union Boulevard is occupied by a district court and has undergone a full renovation. The property is maintained by the landlord and is subject to a gross lease with yearly increases. The existing tenant has completed an initial 5-year term and executed another long-term lease, with no plans to relocate.
The property is located in Allentown City, Pennsylvania, along Union Boulevard and near the planned $425 million Waterfront development on the Lehigh River’s western bank. The 29-acre project is planned to include Class A offices, apartments, restaurants, and green space.
B-3 Highway Business zoning allows a range of uses and may support redevelopment after the remaining lease term expires.
The property is located in Allentown City, Pennsylvania, along Union Boulevard and near the planned $425 million Waterfront development on the Lehigh River’s western bank. The 29-acre project is planned to include Class A offices, apartments, restaurants, and green space.
B-3 Highway Business zoning allows a range of uses and may support redevelopment after the remaining lease term expires.
Key Highlights
- 4,228 SF office building occupied by a district court
- Tenant has completed an initial 5‑year term and signed another long‑term lease
- Gross lease structure includes yearly increases
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
$22,953
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
3.06%
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%
$459,060
$459.1K
Cap Rate 7%
$327,900
$327.9K
Cap Rate 9%
$255,033
$255.0K
Market Conditions
NOI Build-Up for 4,228 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
$33.0K $7.80/SF
− Vacancy
−$2.4K −$0.56/SF
EGI
$30.6K $7.24/SF
− OpEx
−$7.7K −$1.81/SF
NOI
$23.0K $5.43/SF
Area
Allentown, PA
Vacancy
7.20%
Lease Rate
$7.80 /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%
$459,060
Cap Rate 7%
$327,900
Cap Rate 9%
$255,033
Alternative Uses
Best Use
Office B
$327.9K
$286.9K – $382.6K
NOI $22,953 @ 7.0% cap · market cap 3.06%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$830.6K
$726.8K – $969.1K
NOI $58,143 @ 7.0% cap · market cap 7.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
922
Businesses Nearby
Explore this area
Business Placement
Demographics for 18109, PA
18,915
Population
7,395
Households
2.6
Avg Household Size
37
Median Age
19%
College-Educated
80%
High-School Grad
8.2 sq mi
ZIP Area
2,307
Density / Sq Mi
$55,437
Median Household Income
$36,632
Median Earnings
$1,239
Median Rent
$180,200
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Occupied by a district court under a gross lease with annual increases.
Where is this office building located?
The property is located at 1007 Union Boulevard Allentown, PA.
What is the asking price?
The asking price for this property is $749,900.
What are key features of this property?
This property features: 4,228 SF office building occupied by a district court; Tenant has completed an initial 5‑year term and signed another long‑term lease; Gross lease structure includes yearly increases
