Versatile Brick and Beam
For Sale
$2,800,000
103 Terrace Street, Boston, MA 02120
Two-story building with office, showroom, and workshop space for sale.
Property Size9,400 SF
Price / SF$297.87
Days on Market451
Property Features for 103 Terrace Street
General Information
Standard status
Active
Size
9,400 SF
Taxes and HOA fees
Annual Taxes
$24,449
Building Details
Year Built
1899
Listing Agency:
Boston Realty Advisors
Listed By:
Nicholas Herz
Source:
Corcoran
Added: Jun 9, 2025
Changed: Mar 16
Last Checked: Apr 24 at 4:09PM
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 Boston Realty Advisors
Investment Insights
Based on property information with market context.
The property at 103 Terrace Street is a two-story "brick and beam" building featuring a combination of office, showroom, and workshop spaces. The second floor offers wide-open office space. The first floor includes a two-story showroom with an open mezzanine, as well as a workshop area. With 9,400 square feet of space, this building is suitable for an owner-occupant due to its flexible layout and on-site parking. The property can be delivered vacant or with new leases from the existing second-floor tenants.
Key Highlights
- Two‑story "brick and beam" building with flexible uses.
- Ideal for owner‑occupant.
- On‑site parking available.
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
$151,722
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
5.42%
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%
$3,034,440
$3.0M
Cap Rate 7%
$2,167,457
$2.2M
Cap Rate 9%
$1,685,800
$1.7M
Market Conditions
NOI Build-Up for 9,400 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
$236.9K $25.20/SF
− Vacancy
−$20.1K −$2.14/SF
EGI
$216.7K $23.06/SF
− OpEx
−$65.0K −$6.92/SF
NOI
$151.7K $16.14/SF
Area
Boston, MA
Vacancy
8.50%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
30.00%
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%
$3,034,440
Cap Rate 7%
$2,167,457
Cap Rate 9%
$1,685,800
Alternative Uses
Best Use
Office B
$3.96M
$3.46M – $4.62M
NOI $277,150 @ 7.0% cap · market cap 9.90%
Second Best
Retail
$2.17M
$1.90M – $2.53M
NOI $151,722 @ 7.0% cap · market cap 5.42%
Theoretical Best
Office A
$7.04M
$6.16M – $8.21M
NOI $492,710 @ 7.0% cap · market cap 17.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
7,602
Businesses Nearby
Explore this area
Business Placement
Demographics for 02120, MA
17,578
Population
5,061
Households
3.5
Avg Household Size
26
Median Age
44%
College-Educated
78%
High-School Grad
0.6 sq mi
ZIP Area
29,297
Density / Sq Mi
$61,472
Median Household Income
$27,345
Median Earnings
$1,630
Median Rent
$941,200
Median Home Value
Market
Vacancy Rate% for Office in Boston, MA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Two-story building with office, showroom, and workshop space for sale.
Where is this office units located?
The property is located at 103 Terrace Street Boston, MA.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: Two‑story "brick and beam" building with flexible uses.; Ideal for owner‑occupant.; On‑site parking available.
