Office Building with Two
For Sale
$439,000
112 E Derenne Avenue, Savannah, GA 31405
Commercial Sale, Bungalow - Savannah, GA
Property Size1,925 SF
Lot Size0.29 Acres
Price / SF$228.05
Days on Market56
Property Features for 112 E Derenne Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
Commercial
Bathrooms
1
Full bathrooms
1
Rooms
Bathroom 1
Parking
5
Exterior features
Storage
Appliances
Freezer, Range, Refrigerator
Directions
From Abercorn Street, head east on Derenne, it is the 6th property from Abercorn, on the north side of Derenne.
Standard status
Active
APN
2012804014
Size
1,925 SF
Lot size
0.29 Acres
Utilities
Heating system
Electric (Heating), Heat Pump (Heating), Wall Furnace
Cooling system
Central Air, Electric, Multi Units, Wall Unit(s)
Building Details
Year built
1970
Flooring type
Hardwood, Tile
Roof type
Composition
Architectural style
Bungalow
Additional Structures
Storage
Listing Agency:
Engel & Völkers Savannah
(912) 238-0874
Listed By:
Shane P. Litts
Added: Jul 7
Changed: Jul 15
Last Checked: Aug 31 at 11:06PM
MLS# SA343220
Copyright © 2026 Engel & Völkers. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This office building offers a flexible interior configuration and practical on-site improvements. The property includes approximately 1,925 square feet and a brand-new architectural shingle roof. The current setup is configured as 3 bedrooms and 1.5 baths, with multiple rooms that can be repurposed for office use, including private offices, reception or conference space, and separate entrances for client and employee access. A large attached work area adds additional functional space.
The building is zoned Commercial (O-I: Office & Institutional). Two front entrances provide separate client and employee access. The property also includes two accessory structures for storage or additional space: an 11' x 23' workshop and an 11' x 23' metal shed.
Set on a 0.29-acre lot, the site is described as having ample space for parking and strong access to Midtown and Downtown. The adjacent 0.38-acre corner lot on Habersham St. is also available for expansion or redevelopment.
The building is zoned Commercial (O-I: Office & Institutional). Two front entrances provide separate client and employee access. The property also includes two accessory structures for storage or additional space: an 11' x 23' workshop and an 11' x 23' metal shed.
Set on a 0.29-acre lot, the site is described as having ample space for parking and strong access to Midtown and Downtown. The adjacent 0.38-acre corner lot on Habersham St. is also available for expansion or redevelopment.
Key Highlights
- Excellent location on E. Derenne Ave. near Habersham St. and Abercorn St. with great access to Midtown and Downtown.
- Zoned O‑I (Office & Institutional) offering versatile use.
- Adaptable ±1,925 SF building layout suitable for office or residential use.
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
$26,763
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
6.10%
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%
$535,260
$535.3K
Cap Rate 7%
$382,329
$382.3K
Cap Rate 9%
$297,367
$297.4K
Market Conditions
NOI Build-Up for 1,925 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
$42.7K $22.20/SF
− Vacancy
−$7.1K −$3.66/SF
EGI
$35.7K $18.54/SF
− OpEx
−$8.9K −$4.63/SF
NOI
$26.8K $13.90/SF
Area
Savannah, GA
Vacancy
16.50%
Lease Rate
$22.20 /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%
$535,260
Cap Rate 7%
$382,329
Cap Rate 9%
$297,367
Alternative Uses
Best Use
Office B
$382.3K
$334.5K – $446.1K
NOI $26,763 @ 7.0% cap · market cap 6.10%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$1.80M
$1.57M – $2.10M
NOI $125,933 @ 7.0% cap · market cap 28.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,478
Businesses Nearby
Explore this area
Business Placement
Demographics for 31405, GA
38,069
Population
16,809
Households
2.3
Avg Household Size
36
Median Age
35%
College-Educated
90%
High-School Grad
31.2 sq mi
ZIP Area
1,220
Density / Sq Mi
$62,123
Median Household Income
$35,836
Median Earnings
$1,431
Median Rent
$304,800
Median Home Value
Market
Vacancy Rate% for Office in Savannah, GA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Office building on a 0.29-acre lot with a new shingle roof, flexible interior layout, and attached work area.
Where is this office building located?
The property is located at 112 E Derenne Avenue Savannah, GA.
What is the asking price?
The asking price for this property is $439,000.
What are key features of this property?
This property features: Excellent location on E. Derenne Ave. near Habersham St. and Abercorn St. with great access to Midtown and Downtown.; Zoned O‑I (Office & Institutional) offering versatile use.; Adaptable ±1,925 SF building layout suitable for office or residential use.
