Adaptable Commercial Property For
For Sale
$299,900
Pending
1196 Smith, Providence, RI 02908
Versatile commercial space suitable for office or residential conversion.
Property Size1,313 SF
Days on Market214
Property Features for 1196 Smith
General Information
Standard status
Pending
Size
1,313 SF
Property subtype
Commercial
Building Details
Year Built
1930
Listing Agency:
RE/MAX PROPERTIES
(401) 232-3900
Listed By:
PAUL HARRISON · License #RES.0042365
Source:
Corcoran
Added: Jan 29
Changed: Jul 6
Last Checked: Jul 23 at 8:21AM
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 RE/MAX PROPERTIES
Investment Insights
Based on property information with market context.
This versatile commercial property is suitable for professional, medical, or general office use. It can also be converted into a residential dwelling. Formerly a dental office, the space includes plumbing in each treatment room. The layout is functional and ready for immediate occupancy or easy reconfiguration. The building features a newer roof and a heating system that is three years old. The property offers solid construction and excellent adaptability. It is suitable for investors, business owners, or developers seeking a commercial space with residential conversion potential. The property size is 1313 square feet. The property is sold as is.
Key Highlights
- Versatile commercial property suitable for professional, medical, or general office use
- Potential for residential conversion
- Equipped with plumbing in each treatment room
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
$22,467
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
7.49%
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%
$449,340
$449.3K
Cap Rate 7%
$320,957
$321.0K
Cap Rate 9%
$249,633
$249.6K
Market Conditions
NOI Build-Up for 1,313 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
$35.5K $27.00/SF
− Vacancy
−$5.5K −$4.19/SF
EGI
$30.0K $22.81/SF
− OpEx
−$7.5K −$5.70/SF
NOI
$22.5K $17.11/SF
Area
Providence, RI
Vacancy
15.50%
Lease Rate
$27.00 /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%
$449,340
Cap Rate 7%
$320,957
Cap Rate 9%
$249,633
Alternative Uses
Best Use
Office B
$321.0K
$280.8K – $374.5K
NOI $22,467 @ 7.0% cap · market cap 7.49%
Second Best
Healthcare Medical
$298.3K
$261.0K – $348.1K
NOI $20,883 @ 7.0% cap · market cap 6.96%
Theoretical Best
Office A
$439.3K
$384.4K – $512.5K
NOI $30,749 @ 7.0% cap · market cap 10.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
545
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 02908, RI
38,507
Population
17,160
Households
2.2
Avg Household Size
32
Median Age
29%
College-Educated
84%
High-School Grad
3.4 sq mi
ZIP Area
11,326
Density / Sq Mi
$74,341
Median Household Income
$42,947
Median Earnings
$1,381
Median Rent
$293,800
Median Home Value
Market
Vacancy Rate% for Office in Providence, RI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Versatile commercial space suitable for office or residential conversion.
Where is this medical office space located?
The property is located at 1196 Smith Providence, RI.
What is the asking price?
The asking price for this property is $299,900.
What are key features of this property?
This property features: Versatile commercial property suitable for professional, medical, or general office use; Potential for residential conversion; Equipped with plumbing in each treatment room
