Manufacturing and Fabrication
For Sale
$4,595,000
450 Gateway Drive, Reading, PA 19601
Modern industrial building includes manufacturing space with smooth sealed concrete and office areas with insulated glass windows.
Property Size34,728 SF
Days on Market75
Property Features for 450 Gateway Drive
General Information
Standard status
Active
Size
34,728 SF
Property subtype
Industrial
Building Details
Building Size
34,728 SF
Year Built
2009
Listed By:
Steve Willems, SIOR
(610) 370-8506
Source:
Naikeystone
Added: Jun 23
Changed: Sep 3
Last Checked: Sep 5 at 6:29AM
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 Steve Willems, SIOR
Investment Insights
Based on property information with market context.
This modern industrial building is set up for manufacturing and fabricating, with a pre-engineered steel superstructure and vertical anodized steel panel walls that include batt insulation. The industrial portion features a pitched standing seam steel panel roof with batt insulation beneath, and smooth sealed concrete floors. Lighting is provided through a mix of LED and T-8 fixtures.
Office areas include a split-face block exterior with DRVIT (synthetic stucco) accents and aluminum framed insulated glass windows that wrap around the office. The office roof system is flat and was covered in 2016 with a rubber membrane. The industrial section is heated by a gas-fired air-rotation unit, and two roof-mounted split systems provide heat and A/C for the offices.
The property is 34,728 SF on 3.12 acres and is described as expandable, supporting potential future growth for manufacturing operations.
Office areas include a split-face block exterior with DRVIT (synthetic stucco) accents and aluminum framed insulated glass windows that wrap around the office. The office roof system is flat and was covered in 2016 with a rubber membrane. The industrial section is heated by a gas-fired air-rotation unit, and two roof-mounted split systems provide heat and A/C for the offices.
The property is 34,728 SF on 3.12 acres and is described as expandable, supporting potential future growth for manufacturing operations.
Key Highlights
- 34,728 SF modern industrial building on 3.12 acres, set up for manufacturing and fabricating
- Pre‑engineered steel superstructure with vertical anodized steel panel walls and batt insulation
- Industrial roof is pitched with standing seam steel panels and batt insulation underneath
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
$202,633
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
4.41%
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%
$4,052,660
$4.1M
Cap Rate 7%
$2,894,757
$2.9M
Cap Rate 9%
$2,251,478
$2.3M
Market Conditions
NOI Build-Up for 34,728 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
$306.6K $8.83/SF
− Vacancy
−$17.2K −$0.49/SF
EGI
$289.5K $8.34/SF
− OpEx
−$86.8K −$2.50/SF
NOI
$202.6K $5.83/SF
Area
Berks County, PA
Vacancy
5.60%
Lease Rate
$8.83 /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%
$4,052,660
Cap Rate 7%
$2,894,757
Cap Rate 9%
$2,251,478
Alternative Uses
Best Use
Industrial
$2.89M
$2.53M – $3.38M
NOI $202,633 @ 7.0% cap · market cap 4.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.70M
$4.99M – $6.65M
NOI $399,066 @ 7.0% cap · market cap 8.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,192
Businesses Nearby
Explore this area
Business Placement
Demographics for 19601, PA
35,477
Population
14,024
Households
2.5
Avg Household Size
34
Median Age
12%
College-Educated
73%
High-School Grad
3.8 sq mi
ZIP Area
9,336
Density / Sq Mi
$41,133
Median Household Income
$30,433
Median Earnings
$986
Median Rent
$110,700
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?
Manufacturing property - Modern industrial building includes manufacturing space with smooth sealed concrete and office areas with insulated glass windows.
Where is this manufacturing property located?
The property is located at 450 Gateway Drive Reading, PA.
What is the asking price?
The asking price for this property is $4,595,000.
What are key features of this property?
This property features: 34,728 SF modern industrial building on 3.12 acres, set up for manufacturing and fabricating; Pre‑engineered steel superstructure with vertical anodized steel panel walls and batt insulation; Industrial roof is pitched with standing seam steel panels and batt insulation underneath
