Bungalow Office Building with
For Sale
Under Contract
$439,000
112 E Derenne Avenue, Savannah, GA 31405
Commercial Sale, Savannah, GA
Property Size1,925 SF
Lot Size0.29 Acres
Price / SF$228.05
Days on Market290
Property Features for 112 E Derenne Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
OI
Zoning description
Commercial
Bathrooms
1
Full bathrooms
1
Rooms
Bathroom 1
Parking
5
Exterior features
Storage
Fencing
Chain Link
Appliances
Freezer, Gas Water Heater, Oven, Range, Refrigerator
Lot features
Level
Directions
From Abercorn Street, head east on Derenne, it is the 6th property from Abercorn, on the north side of Derenne.
Standard status
Active Under Contract
APN
2012804014
Size
1,925 SF
Lot size
0.29 Acres
Taxes and HOA fees
Tax Description
LOT 6 MANOR SUB PEEPLES WARD
Legal Description
LOT 6 MANOR SUB PEEPLES WARD
Utilities
Sewer type
Public Sewer
Heating system
Heat Pump (Heating), Electric (Heating), Wall Furnace
Cooling system
Central Air, Electric, Wall Unit(s)
Water source
Public
Building Details
Year built
1970
Floors in Building
1
Flooring type
Hardwood, Tile
Building materials
Wood Siding
Roof type
Composition
Architectural style
Bungalow
Additional Structures
Workshop, Storage
Listing Agency:
Engel & Volkers
(912) 238-0874
Listed By:
Shane P. Litts · License #375076
(912) 659-0464
Added: Nov 6, 2025
Changed: Aug 22
Last Checked: Aug 23 at 4:06PM
MLS# SA343220
Copyright © 2026 Hive MLS. 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 1,925 SF bungalow office property occupies a 0.29-acre parcel in Savannah. The building is arranged with three private rooms, a living area that can accommodate reception or meetings, and two separate entry points. A substantial attached work area extends the usable space, while an 11' x 23' workshop and an 11' x 23' metal shed provide additional storage or project space. The property has wood siding, hardwood and tile flooring, central air, and a newly installed architectural shingle roof.
Zoned OI, the site is positioned on E. Derenne Avenue near Habersham Street and close to Abercorn Street, with access toward Midtown and Downtown. Public water and sewer serve the property, and the chain-link-fenced parcel provides room for parking. An adjoining 0.38-acre corner parcel on Habersham Street is separately available for expansion or redevelopment.
Zoned OI, the site is positioned on E. Derenne Avenue near Habersham Street and close to Abercorn Street, with access toward Midtown and Downtown. Public water and sewer serve the property, and the chain-link-fenced parcel provides room for parking. An adjoining 0.38-acre corner parcel on Habersham Street is separately available for expansion or redevelopment.
Key Highlights
- 1,925 SF office building on a 0.29‑acre lot
- OI zoning supports office and institutional use
- Two separate entrances for distinct visitor and staff access
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
Lease Details
Yes
Paved road access
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 - OI-zoned property offers two entrances, a flexible interior, and public water and sewer service.
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: 1,925 SF office building on a 0.29‑acre lot; OI zoning supports office and institutional use; Two separate entrances for distinct visitor and staff access
