Industrial Flex Unit For
For Sale
$295,000
113 S First Colonial Rd Ste 126, Virginia Beach, VA 23454
1,500 SF industrial flex unit near Hilltop and I-264.
Property Size1,500 SF
Price / SF$196.67
Days on Market178
Property Features for 113 S First Colonial Rd Ste 126
General Information
Standard status
Active
Size
1,500 SF
Property subtype
Industrial
Building Details
Building Size
1,500 SF
Year Built
1984
Listing Agency:
The Katsias Company
(757) 285-8989
Listed By:
John Katsias
(757) 285-8989
Source:
Katsias
Added: Mar 5
Changed: Aug 26
Last Checked: Aug 29 at 6:12AM
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 The Katsias Company
Investment Insights
Based on property information with market context.
Located in the Trade Center Condominium complex, this 1,500 SF industrial flex unit presents an opportunity for small business owners, service providers, or investors. Constructed in 1984, the unit is zoned for commercial and industrial use and features steel-frame construction (Class S – Pre-Engineered Steel). The property offers an open warehouse-style space suitable for light manufacturing, storage, distribution, or workshop needs. Its flexible layout and functional square footage allow for customization to accommodate various business operations. The property is situated near Hilltop, minutes from I-264 and the Oceanfront, providing access to business hubs and major traffic arteries in Virginia Beach.
Key Highlights
- Strategically located near Hilltop, I‑264, and the Oceanfront, providing convenient access to business hubs and major traffic arteries.
- Zoned for commercial/industrial use, suitable for small business owners, service providers, or investors.
- 1,500 SF industrial flex unit offering open warehouse‑style space.**
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
$12,355
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
4.19%
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%
$247,100
$247.1K
Cap Rate 7%
$176,500
$176.5K
Cap Rate 9%
$137,278
$137.3K
Market Conditions
NOI Build-Up for 1,500 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
$19.8K $13.20/SF
− Vacancy
−$792 −$0.53/SF
EGI
$19.0K $12.67/SF
− OpEx
−$6.7K −$4.44/SF
NOI
$12.4K $8.24/SF
Area
ZIP 23454
Vacancy
4.00%
Lease Rate
$13.20 /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%
$247,100
Cap Rate 7%
$176,500
Cap Rate 9%
$137,278
Alternative Uses
Best Use
Flex RnD
$176.5K
$154.4K – $205.9K
NOI $12,355 @ 7.0% cap · market cap 4.19%
Second Best
Industrial
$140.4K
$122.9K – $163.8K
NOI $9,828 @ 7.0% cap · market cap 3.33%
Theoretical Best
Office A
$379.4K
$332.0K – $442.7K
NOI $26,559 @ 7.0% cap · market cap 9.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
361
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 23454, VA
58,665
Population
24,253
Households
2.4
Avg Household Size
38
Median Age
43%
College-Educated
94%
High-School Grad
22.5 sq mi
ZIP Area
2,607
Density / Sq Mi
$97,835
Median Household Income
$48,961
Median Earnings
$1,600
Median Rent
$401,900
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - 1,500 SF industrial flex unit near Hilltop and I-264.
Where is this flex space located?
The property is located at 113 S First Colonial Rd Ste 126 Virginia Beach, VA.
What is the asking price?
The asking price for this property is $295,000.
What are key features of this property?
This property features: Strategically located near Hilltop, I‑264, and the Oceanfront, providing convenient access to business hubs and major traffic arteries.; Zoned for commercial/industrial use, suitable for small business owners, service providers, or investors.; 1,500 SF industrial flex unit offering open warehouse‑style space.**
