Building Details

Building Size 24,500 SF

Year Built 1941

Listing Agency: NAI Keystone Commercial & Industrial, LLC p***@naikeystone.com Show Phone

Listed By: Patrick Zerbe · License #PA #RS356626

Source: Naikeystone

Added: Apr 1 Changed: Aug 15 Last Checked: Aug 24 at 3:33AM

Report an Issue

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 NAI Keystone Commercial & Industrial, LLC

Investment Insights

Based on property information with market context.

The property at 60 E Penn Ave, Wernersville, PA, features a 24,500 square-foot building. It offers a redevelopment opportunity, particularly due to the ongoing development along the 422 corridor. The property's location is strategically positioned to benefit from current development trends in the area. It is suited for a redevelopment project, offering the chance to leverage the property's potential in a rapidly evolving market.

Key Highlights

• Redevelopment Opportunity: The property is primed for a forward‑thinking redevelopment project.
• Strategic Location: Positioned to benefit from ongoing development along the 422 corridor.
• High Square Footage: The building offers a substantial 24,500 SF of space.

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

$248,417

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

8.87%

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%

$4,968,340 $5.0M

Cap Rate 7%

$3,548,814 $3.5M

Cap Rate 9%

$2,760,189 $2.8M

Market Conditions

NOI Build-Up for 24,500 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

$370.4K $15.12/SF

− Vacancy

−$15.6K −$0.64/SF

EGI

$354.9K $14.48/SF

− OpEx

−$106.5K −$4.35/SF

NOI

$248.4K $10.14/SF

Area

Berks County, PA

Vacancy

4.20%

Lease Rate

$15.12 /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%

$4,968,340

Cap Rate 7%

$3,548,814

Cap Rate 9%

$2,760,189

Alternative Uses

Best Use

Retail

$3.55M

$3.11M – $4.14M (±1% cap)

NOI $248,417 @ 7.0% cap · market cap 8.87%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$4.02M

$3.52M – $4.69M (±1% cap)

NOI $281,534 @ 7.0% cap · market cap 10.05%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Suggested Use

Top Pick Real Estate Agency Dental Office Law Firm Restaurant Hair Salon Spa & Massage Center

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

204

Businesses Nearby

5k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Family Dollar Shops & Services

4,624 visits/mo 0.2 miles

Demographics for 19565, PA

8,995

Population

3,696

Households

2.4

Avg Household Size

47

Median Age

32%

College-Educated

95%

High-School Grad

18.0 sq mi

ZIP Area

500

Density / Sq Mi

$80,881

Median Household Income

$49,694

Median Earnings

$1,283

Median Rent

$262,900

Median Home Value

Market

Vacancy Rate% for Retail in Northeast region

6% 2019

7.1% 2020

6.5% 2021

6% 2022

5.7% 2023

5.6% 2024

6% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this retail space located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Frequently Asked Questions

What type of property is this?

Retail space - 24,500 SF building suitable for redevelopment along 422 corridor.

Where is this retail space located?

The property is located at 60 E Penn Ave Wernersville, PA.

What is the asking price?

The asking price for this property is $2,800,000.

What are key features of this property?

This property features: Redevelopment Opportunity: The property is primed for a forward‑thinking redevelopment project.; Strategic Location: Positioned to benefit from ongoing development along the 422 corridor.; High Square Footage: The building offers a substantial 24,500 SF of space.