Prime Location Mixed-Use Development
For Sale
Contact for pricing
1326 Walnut St, Philadelphia, PA
Development site near restaurants, transportation, and cultural centers.
Property Size4,950 SF
Lot Size0.03 Acres
Price / SF$252.53
Days on Market1195
Property Features for 1326 Walnut St
General Information
Standard status
Active
Size
4,950 SF
Lot size
0.03 Acres
Property subtype
RETAIL
Listing Agency:
Binswanger - Corporate
(215) 448-6000
Listed By:
Chris Pennington
(215) 448-6053
Source:
Moodyscre
Added: Jun 7, 2023
Changed: Sep 13
Last Checked: Sep 13 at 6:53AM
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 Binswanger - Corporate
Investment Insights
Based on property information with market context.
This 4,950 square foot property is suitable for commercial mixed-use or multifamily development by right. The site benefits from a prominent street location in an area with ongoing commercial and residential development. It is situated within one block of popular restaurants and Broad Street, offering convenient access to the Broad Street Line and bus stations. The property is also located within minutes of a major hospital system and within walking distance of prominent cultural art centers. The property features an elevator and is sealed and dry. There is no historic zoning.
Key Highlights
- Prime location with commercial and residential development in the area
- Can build commercial mixed‑use or all multifamily units by right
- No historic zoning restrictions
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
$58,806
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
4.70%
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%
$1,176,120
$1.2M
Cap Rate 7%
$840,086
$840.1K
Cap Rate 9%
$653,400
$653.4K
Market Conditions
NOI Build-Up for 4,950 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
$106.9K $21.60/SF
− Vacancy
−$12.8K −$2.59/SF
EGI
$94.1K $19.01/SF
− OpEx
−$35.3K −$7.13/SF
NOI
$58.8K $11.88/SF
Area
Philadelphia, PA
Vacancy
12.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,176,120
Cap Rate 7%
$840,086
Cap Rate 9%
$653,400
Alternative Uses
Best Use
Mixed Use
$840.1K
$735.1K – $980.1K
NOI $58,806 @ 7.0% cap · market cap 4.70%
Second Best
Retail
$799.2K
$699.3K – $932.4K
NOI $55,946 @ 7.0% cap · market cap 4.48%
Theoretical Best
Multifamily LT 5
$1.21M
$1.06M – $1.41M
NOI $84,471 @ 7.0% cap · market cap 6.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
26,359
Businesses Nearby
339k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 35%
Apparel 19%
Groceries 17%
Shops & Services 13%
Whole Foods Market
Groceries
37,607 visits/mo
0.5 miles
The Ritz-Carlton, Philadelphia
Hotels & Casinos
30,824 visits/mo
0.2 miles
Starbucks
Dining
22,463 visits/mo
0.4 miles
ACME Markets
Groceries
20,427 visits/mo
0.4 miles
UNIQLO
Apparel
20,066 visits/mo
0.3 miles
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Philadelphia, PA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail property - Development site near restaurants, transportation, and cultural centers.
Where is this retail property located?
The property is located at 1326 Walnut St Philadelphia, PA.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Prime location with commercial and residential development in the area; Can build commercial mixed‑use or all multifamily units by right; No historic zoning restrictions
