Building Details

Year Built 1986

Listing Agency: McKechnie Commercial Realty

Listed By: Suzanne McKechnie Show Phone

Source: Aroostookrealestate

Added: Sep 5 Last Checked: Sep 7 at 12:01PM

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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 McKechnie Commercial Realty

Investment Insights

Based on property information with market context.

This 1,520 SF commercial condominium occupies the second floor of a professional complex established in 1986. The adaptable layout can accommodate professional office, therapy, wellness, medical, and other service-oriented uses, providing a practical setting for an owner-user or commercial investor.

The property is positioned along the Route 1 corridor in Arundel, with access to Kennebunk, Biddeford, and surrounding York County communities. Its condominium format offers a manageable commercial unit within an established professional setting.

Key Highlights

• 1,520 SF commercial condominium
• Second‑floor unit in a professional complex
• Built in 1986

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

$20,590

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

8.24%

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%

$411,800 $411.8K

Cap Rate 7%

$294,143 $294.1K

Cap Rate 9%

$228,778 $228.8K

Market Conditions

NOI Build-Up for 1,520 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

$38.3K $25.20/SF

− Vacancy

−$4.0K −$2.62/SF

EGI

$34.3K $22.58/SF

− OpEx

−$13.7K −$9.03/SF

NOI

$20.6K $13.55/SF

Area

York County, ME

Vacancy

10.41%

Lease Rate

$25.20 /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%

$411,800

Cap Rate 7%

$294,143

Cap Rate 9%

$228,778

Alternative Uses

Best Use

Office B

$355.7K

$311.2K – $415.0K (±1% cap)

NOI $24,898 @ 7.0% cap · market cap 9.96%

Second Best

Healthcare Medical

$294.1K

$257.4K – $343.2K (±1% cap)

NOI $20,590 @ 7.0% cap · market cap 8.24%

Theoretical Best

Office A

$481.8K

$421.6K – $562.1K (±1% cap)

NOI $33,728 @ 7.0% cap · market cap 13.50%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Office Units

Suggested Use

Top Pick Building Supply Parking Lot & Garage HVAC Service Real Estate Agency Pharmacy (Bike/Boat/Book/etc) Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

112

Businesses Nearby

Explore this area Business Placement

Demographics for 04046, ME

7,893

Population

4,740

Households

1.7

Avg Household Size

51

Median Age

41%

College-Educated

98%

High-School Grad

44.4 sq mi

ZIP Area

178

Density / Sq Mi

$99,861

Median Household Income

$43,000

Median Earnings

$1,250

Median Rent

$559,900

Median Home Value

Market

Vacancy Rate% for Office in Northeast region

13.1% 2019

15.4% 2020

17.6% 2021

19.1% 2022

20.2% 2023

20.9% 2024

19.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this office units located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Office units - Flexible commercial layout in an established professional complex supports office and service-oriented uses.

Where is this office units located?

The property is located at 1222 Portland Rd Unit 10 Arundel, ME.

What is the asking price?

The asking price for this property is $249,900.

What are key features of this property?

This property features: 1,520 SF commercial condominium; Second‑floor unit in a professional complex; Built in 1986