Ground-Floor Office
For Sale
$2,500,000
1216 ARCH STREET Unit 1, Philadelphia, PA 19107
Built-out commercial condominium with storefront frontage, loft-style finishes, conference rooms, and loading access.
Property Size24,400 SF
Price / SF$202.43
Days on Market391
Property Features for 1216 ARCH STREET Unit 1
General Information
Standard status
Active
Size
24,400 SF
Property subtype
Office
Additional Details
Floor
Ground Floor
Public Transit
Yes
Office Units
1
Taxes and HOA fees
Annual Taxes
$49,070
Amenities
large open meeting room
two conference rooms
partitioned offices
kitchenette
men's and women's restrooms
loading area
Building Details
Building Size
24,400 SF
Year Built
1900
Construction
loft-style
Tenancy
Multi
Listing Agency:
MSC Retail, Inc.
(215) 605-8355
Listed By:
Josh Weiss · License #RS324559
(215) 605-8355
Source:
Patmckennarealtors
Added: Jul 22, 2025
Changed: Aug 15
Last Checked: Aug 16 at 2:56PM
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 MSC Retail, Inc.
Investment Insights
Based on property information with market context.
This office condominium combines a finished ground-floor commercial layout with substantial supporting space below. The 12,350 SF main level includes a storefront, high ceilings, hardwood flooring, exposed brick and columns, an open meeting room, two conference rooms, partitioned offices, a kitchenette, and separate men’s and women’s restrooms. A loading area provides direct access from Cuthbert Street. The basement adds over 12,000 SF with 12' ceilings, offering substantial storage or back-of-house capacity. A portion of the basement is leased to AT&T and T-Mobile.
The property is in Center City Philadelphia, directly across from the Convention Center and Reading Terminal. Market Street, Broad Street, City Hall, public transportation, parking, hotels, cultural attractions, restaurants, and retail are within the surrounding area. The building dates to 1900 and is configured as a large ground-floor commercial condominium with basement space.
The property is in Center City Philadelphia, directly across from the Convention Center and Reading Terminal. Market Street, Broad Street, City Hall, public transportation, parking, hotels, cultural attractions, restaurants, and retail are within the surrounding area. The building dates to 1900 and is configured as a large ground-floor commercial condominium with basement space.
Key Highlights
- 12,350 SF ground‑floor commercial condominium with storefront
- Over 12,000 SF basement with 12' ceilings
- Loft‑style interior with hardwood floors, exposed brick, and columns
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
$162,520
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
6.50%
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%
$3,250,400
$3.3M
Cap Rate 7%
$2,321,714
$2.3M
Cap Rate 9%
$1,805,778
$1.8M
Market Conditions
NOI Build-Up for 12,350 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
$271.2K $21.96/SF
− Vacancy
−$54.5K −$4.41/SF
EGI
$216.7K $17.55/SF
− OpEx
−$54.2K −$4.39/SF
NOI
$162.5K $13.16/SF
Area
Philadelphia, PA
Vacancy
20.10%
Lease Rate
$21.96 /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%
$3,250,400
Cap Rate 7%
$2,321,714
Cap Rate 9%
$1,805,778
Alternative Uses
Best Use
Office B
$2.32M
$2.03M – $2.71M
NOI $162,520 @ 7.0% cap · market cap 6.50%
Second Best
Retail
$1.99M
$1.74M – $2.33M
NOI $139,582 @ 7.0% cap · market cap 5.58%
Theoretical Best
Multifamily LT 5
$3.01M
$2.63M – $3.51M
NOI $210,751 @ 7.0% cap · market cap 8.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
25,046
Businesses Nearby
Explore this area
Business Placement
Demographics for 19107, PA
17,600
Population
10,239
Households
1.7
Avg Household Size
32
Median Age
72%
College-Educated
92%
High-School Grad
0.5 sq mi
ZIP Area
35,200
Density / Sq Mi
$70,382
Median Household Income
$57,694
Median Earnings
$1,691
Median Rent
$452,500
Median Home Value
Market
Vacancy Rate% for Office in Philadelphia, PA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Built-out commercial condominium with storefront frontage, loft-style finishes, conference rooms, and loading access.
Where is this office units located?
The property is located at 1216 ARCH STREET Unit 1 Philadelphia, PA.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 12,350 SF ground‑floor commercial condominium with storefront; Over 12,000 SF basement with 12' ceilings; Loft‑style interior with hardwood floors, exposed brick, and columns
