Fully Leased Investment
For Sale
$800,000
6505 Old Warwick Rd, Richmond, VA 23225
Turnkey commercial asset in Richmond's Midlothian Corridor.
Property Size10,550 SF
Price / SF$75.83
Days on Market120
Property Features for 6505 Old Warwick Rd
General Information
Standard status
Active
Size
10,550 SF
Property subtype
Commercial
Building Details
Building Size
10,550 SF
Year Built
1976
Stories
1
Listing Agency:
Upton Realty
(757) 650-0286
Listed By:
Donald Upton
(757) 650-0286
Source:
Elliman
Added: Apr 24
Changed: Aug 16
Last Checked: Aug 20 at 7:58AM
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 Upton Realty
Investment Insights
Based on property information with market context.
Located at 6505 Old Warwick Road in Richmond, VA, this 10,550 sq ft single-story commercial building presents a strategic investment opportunity. The property is fully leased and zoned B-3, offering flexibility for industrial, office, or mixed-use purposes. It features two long-term tenants, each benefiting from dedicated loading docks and independent footprints, making it suitable for warehouse, distribution, or flex office use. A third tenant has recently leased a unit. The property is tractor-trailer accessible with 3 dedicated bays. The location provides prime connectivity, with convenient access to Chippenham Pkwy, I-95, I-64, and Powhite Pkwy. The property benefits from a newer roof and a drive-through parking lot. Situated within a Virginia Enterprise Zone, Opportunity Zone, and HUBZone, the property is eligible for grant funding, tax credits, and other financial incentives.
Key Highlights
- Fully leased with stable rental history, providing immediate income.
- Located within a Virginia Enterprise Zone, Opportunity Zone, and HUBZone, offering potential grant funding and tax credits.
- Zoned B‑3, allowing for flexible industrial, office, or mixed‑use development.
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
$66,891
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
8.36%
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%
$1,337,820
$1.3M
Cap Rate 7%
$955,586
$955.6K
Cap Rate 9%
$743,233
$743.2K
Market Conditions
NOI Build-Up for 10,550 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
$105.1K $9.96/SF
− Vacancy
−$9.5K −$0.90/SF
EGI
$95.6K $9.06/SF
− OpEx
−$28.7K −$2.72/SF
NOI
$66.9K $6.34/SF
Area
Richmond, VA
Vacancy
9.06%
Lease Rate
$9.96 /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%
$1,337,820
Cap Rate 7%
$955,586
Cap Rate 9%
$743,233
Alternative Uses
Best Use
Flex RnD
$1.14M
$993.7K – $1.32M
NOI $79,492 @ 7.0% cap · market cap 9.94%
Second Best
Industrial
$955.6K
$836.1K – $1.11M
NOI $66,891 @ 7.0% cap · market cap 8.36%
Theoretical Best
Office A
$2.44M
$2.13M – $2.84M
NOI $170,618 @ 7.0% cap · market cap 21.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
533
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 23225, VA
40,876
Population
21,545
Households
1.9
Avg Household Size
38
Median Age
41%
College-Educated
91%
High-School Grad
13.9 sq mi
ZIP Area
2,941
Density / Sq Mi
$60,865
Median Household Income
$43,550
Median Earnings
$1,311
Median Rent
$292,800
Median Home Value
Market
Vacancy Rate% for Industrial in Richmond, VA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Turnkey commercial asset in Richmond's Midlothian Corridor.
Where is this flex space located?
The property is located at 6505 Old Warwick Rd Richmond, VA.
What is the asking price?
The asking price for this property is $800,000.
What are key features of this property?
This property features: Fully leased with stable rental history, providing immediate income.; Located within a Virginia Enterprise Zone, Opportunity Zone, and HUBZone, offering potential grant funding and tax credits.; Zoned B‑3, allowing for flexible industrial, office, or mixed‑use development.
