Versatile Flex Space in
For Sale
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1115 Melrose Ave, Chester, PA 19013
Adaptable commercial space suitable for retail, service, and light industrial.
Property Size3,589 SF
Price / SF$77.99
Days on Market156
Property Features for 1115 Melrose Ave
General Information
Standard status
Active
Size
3,589 SF
Property subtype
Industrial
Zoning
C-1/R
Building Details
Year Built
1960
Year Renovated
2022
Buildings
1
Stories
1
Units
1
Listing Agency:
McCann Commercial Real Estate
Listed By:
Darryl Miller, CRB, CCIM · License #AB044338A
Source:
Crexi
Added: Mar 9
Changed: Aug 8
Last Checked: Aug 10 at 9:42AM
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 McCann Commercial Real Estate
Investment Insights
Based on property information with market context.
This highly visible flex commercial space offers versatility for various business uses, including retail, service, daycare, special-purpose operations, light industrial, and automotive-related services. It is ideally located near the corner of Morton Avenue and Melrose Avenue in Chester, Pennsylvania, benefiting from strong street presence, easy access, and consistent local traffic. The property was formerly occupied by Surplus Armé, a licensed firearms retailer and gunsmithing operation, and is thoughtfully laid out to support both customer-facing functions and back-of-house operations. The open front area works well as a retail showroom, reception area, classroom space, or client engagement zone. The rear portion offers flexible workspace suitable for light manufacturing, repair, customization, storage, or auto service uses where permitted. This adaptable configuration makes the property attractive to a diverse set of users, ranging from boutique retail and specialty services to daycare, trade contractors, non-profits, and special-purpose occupancies seeking a functional, affordable footprint in a visible corridor. The property has prominent signage visibility, a proven commercial address, and a layout that can be tailored to meet evolving operational needs. The property contains 3589 square feet.
Key Highlights
- Highly visible flex commercial space with broad use potential for retail, service, daycare, light industrial, or automotive businesses.
- Ideally located near Morton and Melrose Avenues in Chester, PA, with strong street presence and easy access.
- Adaptable configuration suitable for retail showroom, reception, classroom, light manufacturing, repair, storage, or auto service.
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
$25,105
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
8.97%
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%
$502,100
$502.1K
Cap Rate 7%
$358,643
$358.6K
Cap Rate 9%
$278,944
$278.9K
Market Conditions
NOI Build-Up for 3,589 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
$40.9K $11.40/SF
− Vacancy
−$2.3K −$0.64/SF
EGI
$38.6K $10.76/SF
− OpEx
−$13.5K −$3.77/SF
NOI
$25.1K $7.00/SF
Area
Delaware County, PA
Vacancy
5.60%
Lease Rate
$11.40 /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%
$502,100
Cap Rate 7%
$358,643
Cap Rate 9%
$278,944
Alternative Uses
Best Use
Retail
$503.4K
$440.4K – $587.3K
NOI $35,235 @ 7.0% cap · market cap 12.59%
Second Best
Flex RnD
$358.6K
$313.8K – $418.4K
NOI $25,105 @ 7.0% cap · market cap 8.97%
Theoretical Best
Office A
$1.09M
$952.1K – $1.27M
NOI $76,170 @ 7.0% cap · market cap 27.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
878
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 19013, PA
34,252
Population
15,664
Households
2.2
Avg Household Size
34
Median Age
13%
College-Educated
86%
High-School Grad
5.6 sq mi
ZIP Area
6,116
Density / Sq Mi
$39,416
Median Household Income
$31,668
Median Earnings
$1,083
Median Rent
$85,200
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Similar Off Market Nearby
- The Jamaican Pattie Shop — 801 Sproul St, Chester, PA 19013
Frequently Asked Questions
What type of property is this?
Flex space - Adaptable commercial space suitable for retail, service, and light industrial.
Where is this flex space located?
The property is located at 1115 Melrose Ave Chester, PA.
What is the asking price?
The asking price for this property is $279,900.
What are key features of this property?
This property features: Highly visible flex commercial space with broad use potential for retail, service, daycare, light industrial, or automotive businesses.; Ideally located near Morton and Melrose Avenues in Chester, PA, with strong street presence and easy access.; Adaptable configuration suitable for retail showroom, reception, classroom, light manufacturing, repair, storage, or auto service.
