Lancaster Avenue Flex/Industrial
For Sale
Contact for pricing
5623 Lancaster Ave, Philadelphia, PA
3,200 SF flex/industrial property with frontage on Lancaster Avenue.
Property Size3,200 SF
Lot Size0.40 Acres
Price / SF$217.19
Days on Market1313
Property Features for 5623 Lancaster Ave
General Information
Standard status
Active
Size
3,200 SF
Lot size
0.40 Acres
Property subtype
INDUSTRIAL
Listing Agency:
Binswanger - Corporate
(856) 630-0774
Listed By:
Jason Ostach · License #1755115
(856) 630-0774
Source:
Moodyscre
Added: Jan 5, 2023
Changed: Aug 8
Last Checked: Aug 8 at 5:26AM
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 3,200 square foot flex/industrial property is situated on 0.39 acres. It features two drive-in doors, one measuring 10 feet by 12 feet and another measuring 14 feet by 13 feet. The property has approximately 143 feet of frontage on Lancaster Avenue, a highly traveled road. Zoned ICMX (Industrial Commercial Mixed-Use) by the City of Philadelphia, the property is located approximately 2 miles from the I-76 ramp, providing convenient access to Center City Philadelphia and bridges to New Jersey. Estimated 2022 taxes are $13,603.25.
Key Highlights
- Prime frontage (approx. 143') on highly traveled Lancaster Avenue.
- Zoning ICMX - Industrial Commercial Mixed‑Use - City of Philadelphia.
- Easy access to Center City Philadelphia and bridges to New Jersey via I‑76 (approx. 2 miles).
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
$33,696
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
4.85%
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%
$673,920
$673.9K
Cap Rate 7%
$481,371
$481.4K
Cap Rate 9%
$374,400
$374.4K
Market Conditions
NOI Build-Up for 3,200 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
$57.6K $18.00/SF
− Vacancy
−$5.8K −$1.80/SF
EGI
$51.8K $16.20/SF
− OpEx
−$18.1K −$5.67/SF
NOI
$33.7K $10.53/SF
Area
Philadelphia, PA
Vacancy
10.00%
Lease Rate
$18.00 /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%
$673,920
Cap Rate 7%
$481,371
Cap Rate 9%
$374,400
Alternative Uses
Best Use
Flex RnD
$481.4K
$421.2K – $561.6K
NOI $33,696 @ 7.0% cap · market cap 4.85%
Second Best
Warehouse
$467.6K
$409.1K – $545.5K
NOI $32,731 @ 7.0% cap · market cap 4.71%
Theoretical Best
Multifamily LT 5
$780.1K
$682.6K – $910.1K
NOI $54,608 @ 7.0% cap · market cap 7.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,329
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Industrial in Philadelphia, PA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - 3,200 SF flex/industrial property with frontage on Lancaster Avenue.
Where is this flex space located?
The property is located at 5623 Lancaster Ave Philadelphia, PA.
What is the asking price?
The asking price for this property is $695,000.
What are key features of this property?
This property features: Prime frontage (approx. 143') on highly traveled Lancaster Avenue.; Zoning ICMX - Industrial Commercial Mixed‑Use - City of Philadelphia.; Easy access to Center City Philadelphia and bridges to New Jersey via I‑76 (approx. 2 miles).
