Modern Industrial Building in
For Sale
$950,000
1123 Lee Ave, Farrell, PA 16121
12,000 SF industrial building with dock and drive-in doors.
Property Size12,000 SF
Price / SF$79.17
Days on Market261
Property Features for 1123 Lee Ave
General Information
Standard status
Active
Size
12,000 SF
Property subtype
Industrial
Building Details
Building Size
12,000 SF
Year Built
2014
Listing Agency:
SVN | Three Rivers Commercial Advisors
(412) 302-3675
Listed By:
John Westermann · License #PA #RS315715
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 8
Last Checked: Aug 9 at 6:01AM
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 SVN | Three Rivers Commercial Advisors
Investment Insights
Based on property information with market context.
This 12,000 SF industrial building, constructed in 2014, is located in Farrell, Mercer County, PA. It features one dock door and two drive-in doors, each measuring 10' wide x 12' high. The property is equipped with 120A/1P power and includes 20 parking spaces. This property offers a blend of modern infrastructure and strategic positioning, making it an ideal investment for those seeking to capitalize on the industrial sector's growth.
Key Highlights
- Modern construction: Built in 2014, minimizing potential maintenance issues.
- Functional loading: Equipped with 1 dock door and 2 drive‑in doors for versatile operations.
- Ample parking: Includes 20 parking spaces for employees and visitors.
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
$85,152
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
8.96%
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%
$1,703,040
$1.7M
Cap Rate 7%
$1,216,457
$1.2M
Cap Rate 9%
$946,133
$946.1K
Market Conditions
NOI Build-Up for 12,000 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
$105.1K $8.76/SF
− Vacancy
−$4.9K −$0.41/SF
EGI
$100.2K $8.35/SF
− OpEx
−$15.0K −$1.25/SF
NOI
$85.2K $7.10/SF
Area
Mercer County, PA
Vacancy
4.70%
Lease Rate
$8.76 /SF/Yr
Expense Ratio
15.00%
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%
$1,703,040
Cap Rate 7%
$1,216,457
Cap Rate 9%
$946,133
Alternative Uses
Best Use
Warehouse
$1.22M
$1.06M – $1.42M
NOI $85,152 @ 7.0% cap · market cap 8.96%
Second Best
Industrial
$1.00M
$876.6K – $1.17M
NOI $70,126 @ 7.0% cap · market cap 7.38%
Theoretical Best
Office A
$4.23M
$3.70M – $4.93M
NOI $296,018 @ 7.0% cap · market cap 31.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
228
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 16121, PA
4,258
Population
2,273
Households
1.9
Avg Household Size
45
Median Age
13%
College-Educated
87%
High-School Grad
2.3 sq mi
ZIP Area
1,851
Density / Sq Mi
$39,412
Median Household Income
$33,046
Median Earnings
$879
Median Rent
$76,500
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - 12,000 SF industrial building with dock and drive-in doors.
Where is this warehouse located?
The property is located at 1123 Lee Ave Farrell, PA.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Modern construction: Built in 2014, minimizing potential maintenance issues.; Functional loading: Equipped with 1 dock door and 2 drive‑in doors for versatile operations.; Ample parking: Includes 20 parking spaces for employees and visitors.
