Sperryville Commercial Building For
For Sale
$750,000
12167 LEE Hwy, Sperryville, VA 22740
Commercial building suitable for restaurant, retail, or medical office.
Property Size2,435 SF
Lot Size0.91 Acres
Price / SF$308.01
Days on Market146
Property Features for 12167 LEE Hwy
General Information
Standard status
Active
Size
2,435 SF
Lot size
0.91 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$1,859
Building Details
Year Built
1962
Units
1
Listing Agency:
KW United
(571) 286-1041
Listed By:
Sarah Foster Paul · License #0225238727
(571) 286-1041
Source:
Elliman
Added: Mar 31
Changed: Aug 12
Last Checked: Aug 22 at 8:39AM
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 KW United
Investment Insights
Based on property information with market context.
Located in Sperryville, this property is suitable for a restaurant, retail store, or medical office. Originally intended as a restaurant, the 2,435 square foot building includes two operational hoods. The building is wheelchair accessible. Ample parking is available, along with space for outdoor dining or activities. Currently, the property is used as a dog training center, with boarding and grooming facilities. In addition to the main building, there are outdoor storage buildings on the premises. The owner requires 60 days to vacate prior to settlement.
Key Highlights
- High‑traffic corner location on a major bi‑way in Sperryville, ideal for business visibility.
- Originally designed for a restaurant, featuring two operational hoods already in place.
- Ample parking available for customers and staff.
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
$38,194
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
5.09%
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%
$763,880
$763.9K
Cap Rate 7%
$545,629
$545.6K
Cap Rate 9%
$424,378
$424.4K
Market Conditions
NOI Build-Up for 2,435 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
$68.1K $27.96/SF
− Vacancy
−$4.4K −$1.82/SF
EGI
$63.7K $26.14/SF
− OpEx
−$25.5K −$10.46/SF
NOI
$38.2K $15.69/SF
Area
Rappahannock County, VA
Vacancy
6.50%
Lease Rate
$27.96 /SF/Yr
Expense Ratio
40.00%
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%
$763,880
Cap Rate 7%
$545,629
Cap Rate 9%
$424,378
Alternative Uses
Best Use
Specialty Retail
$1.35M
$1.18M – $1.58M
NOI $94,673 @ 7.0% cap · market cap 12.62%
Second Best
Retail
$1.16M
$1.02M – $1.36M
NOI $81,455 @ 7.0% cap · market cap 10.86%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
84
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 22740, VA
1,240
Population
583
Households
2.1
Avg Household Size
53
Median Age
38%
College-Educated
98%
High-School Grad
73.5 sq mi
ZIP Area
17
Density / Sq Mi
$96,220
Median Household Income
$49,569
Median Earnings
$1,354
Median Rent
$398,800
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Restaurant - Commercial building suitable for restaurant, retail, or medical office.
Where is this restaurant located?
The property is located at 12167 LEE Hwy Sperryville, VA.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: High‑traffic corner location on a major bi‑way in Sperryville, ideal for business visibility.; Originally designed for a restaurant, featuring two operational hoods already in place.; Ample parking available for customers and staff.
