Flex Space Investment
For Sale
$2,100,000
Pending
491 Erie St, Lancaster, NY 14086
Flex space investment property with long-term tenants and zero vacancies.
Property Size32,874 SF
Lot Size3.09 Acres
Days on Market151
Property Features for 491 Erie St
General Information
Standard status
Pending
Size
32,874 SF
Lot size
3.09 Acres
Property subtype
Industrial
Taxes and HOA fees
Annual Taxes
$32,020
Building Details
Building Size
32,874 SF
Year Built
2001
Stories
1
Listing Agency:
Nichol City Realty
(716) 480-8117
Listed By:
Shannon L McNichol · License #10491201898
(716) 480-8117
Source:
Elliman
Added: Mar 23
Changed: Aug 14
Last Checked: Aug 14 at 7:23AM
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 Nichol City Realty
Investment Insights
Based on property information with market context.
This flex space investment property, constructed in 2001, is situated on 3 acres in a desirable location. The property includes 5 buildings with a total area of approximately 31,500 square feet. It features 18 tenants, comprising 16 suites, one tenant renting two storage containers, and another renting outdoor space. The tenancies are long-term and stable, with zero vacancies. Monthly rents total $16,662. Several units include offices and bathrooms. All units are equipped with suspended ceiling-mounted unit heaters. The blacktop parking area was partially redone in 2025.
Key Highlights
- 7% CAP rate with current monthly rents of $16,662.
- Zero vacancies and long‑term, stable tenancies.
- Flex space investment property with 5 buildings totaling approximately 31,500 sq ft on 3 acres.
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
$181,098
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
8.62%
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%
$3,621,960
$3.6M
Cap Rate 7%
$2,587,114
$2.6M
Cap Rate 9%
$2,012,200
$2.0M
Market Conditions
NOI Build-Up for 31,500 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
$298.6K $9.48/SF
− Vacancy
−$20.0K −$0.64/SF
EGI
$278.6K $8.84/SF
− OpEx
−$97.5K −$3.10/SF
NOI
$181.1K $5.75/SF
Area
Erie County, NY
Vacancy
6.70%
Lease Rate
$9.48 /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%
$3,621,960
Cap Rate 7%
$2,587,114
Cap Rate 9%
$2,012,200
Alternative Uses
Best Use
Flex RnD
$2.59M
$2.26M – $3.02M
NOI $181,098 @ 7.0% cap · market cap 8.62%
Second Best
Industrial
$1.97M
$1.73M – $2.30M
NOI $138,248 @ 7.0% cap · market cap 6.58%
Theoretical Best
Office A
$6.89M
$6.03M – $8.03M
NOI $482,026 @ 7.0% cap · market cap 22.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
101
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 14086, NY
35,010
Population
15,486
Households
2.3
Avg Household Size
44
Median Age
39%
College-Educated
95%
High-School Grad
33.3 sq mi
ZIP Area
1,051
Density / Sq Mi
$95,949
Median Household Income
$53,164
Median Earnings
$983
Median Rent
$263,600
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Flex space investment property with long-term tenants and zero vacancies.
Where is this flex space located?
The property is located at 491 Erie St Lancaster, NY.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: 7% CAP rate with current monthly rents of $16,662.; Zero vacancies and long‑term, stable tenancies.; Flex space investment property with 5 buildings totaling approximately 31,500 sq ft on 3 acres.
