Retail Buildings For
For Sale
$575,000
1188 Forrest Ave, Dover, DE 19904
Two retail buildings, currently occupied by salons, for sale.
Property Size2,784 SF
Price / SF$206.54
Days on Market290
Property Features for 1188 Forrest Ave
General Information
Standard status
Active
Size
2,784 SF
Building Details
Year Built
1970
Listing Agency:
R&R Commerical Realty
Listed By:
Carl Kaplan · License #RS-0013354
(302) 674-3400
Source:
Soldbypattie
Added: Nov 28, 2025
Changed: Sep 8
Last Checked: Sep 14 at 4:37PM
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 R&R Commerical Realty
Investment Insights
Based on property information with market context.
The sale includes two buildings currently occupied on a month-to-month basis by salons. One building has approximately 960 square feet and is constructed over a partial basement. The first floor consists of a reception area, salon, massage room, office, and a powder room. The second building has approximately 1,824 square feet and is constructed over a concrete slab. It is currently utilized as a salon. Both buildings are in good condition and feature gas forced hot air and central air conditioning.
Key Highlights
- Two buildings included in sale
- Currently occupied by tenants (salons) on a month‑to‑month basis
- Larger building (1,824 +/- sq ft) is set up as a salon
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
$25,309
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
4.40%
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%
$506,180
$506.2K
Cap Rate 7%
$361,557
$361.6K
Cap Rate 9%
$281,211
$281.2K
Market Conditions
NOI Build-Up for 2,784 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
$39.1K $14.04/SF
− Vacancy
−$2.9K −$1.05/SF
EGI
$36.2K $12.99/SF
− OpEx
−$10.8K −$3.90/SF
NOI
$25.3K $9.09/SF
Area
Kent County, DE
Vacancy
7.50%
Lease Rate
$14.04 /SF/Yr
Expense Ratio
30.00%
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%
$506,180
Cap Rate 7%
$361,557
Cap Rate 9%
$281,211
Alternative Uses
Best Use
Retail
$361.6K
$316.4K – $421.8K
NOI $25,309 @ 7.0% cap · market cap 4.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$701.0K
$613.4K – $817.9K
NOI $49,072 @ 7.0% cap · market cap 8.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
788
Businesses Nearby
172k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 40%
Groceries 31%
Shops & Services 19%
Home Improvements & Furnishings 5%
Redner's Warehouse Market
Groceries
27,249 visits/mo
0.3 miles
McDonald's
Dining
26,753 visits/mo
0.5 miles
Food Lion Grocery Store
Groceries
25,508 visits/mo
0.3 miles
Dunkin' Donuts
Dining
16,683 visits/mo
0.1 miles
Dollar Tree
Shops & Services
16,670 visits/mo
0.3 miles
Demographics for 19904, DE
36,880
Population
16,047
Households
2.3
Avg Household Size
38
Median Age
27%
College-Educated
91%
High-School Grad
43.2 sq mi
ZIP Area
854
Density / Sq Mi
$66,885
Median Household Income
$39,459
Median Earnings
$1,240
Median Rent
$281,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Two retail buildings, currently occupied by salons, for sale.
Where is this retail space located?
The property is located at 1188 Forrest Ave Dover, DE.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: Two buildings included in sale; Currently occupied by tenants (salons) on a month‑to‑month basis; Larger building (1,824 +/- sq ft) is set up as a salon
