Building Details

Building Size 2,283 SF

Year Built 1985

Listing Agency: Cottonwood Commercial k***@cottonwood.com Show Phone

Listed By: Keith May · License #0225049582

Source: Commercialcafe

Added: Mar 31 Changed: Aug 22 Last Checked: Jul 23 at 7:46AM

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 Cottonwood Commercial

Investment Insights

Based on property information with market context.

This live-work flex property is set up for a home-based business, combining a well maintained residence with multiple improvements for day-to-day operations. Recent updates include a new metal roof, new HVAC system, a new water system, updated flooring and lighting, and an expanded septic system to support an office bathroom. The septic system and septic field were overhauled in 2023.

Outbuildings include an updated and expanded barn with five garage bays, in addition to the house garage. There is also a large shop and office building comprising 3,000 square feet, plus a 1,700 square foot open bay area. The shop/office has its own driveway entrance to help maintain privacy for the residence.

A special use permit is in place to allow business operation on the property. Located at 5260 E Timber Ridge Road in Mount Crawford, VA, it offers a country setting while being close to Harrisonburg.

Key Highlights

• 5.22‑acre property with a special use permit for a business operation on‑site
• Recent updates: new metal roof, new HVAC, new water system, new flooring, and updated lighting
• Septic system and septic field overhauled in 2023, including an expanded septic system to support an office bathroom

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

$35,012

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

3.74%

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%

$700,240 $700.2K

Cap Rate 7%

$500,171 $500.2K

Cap Rate 9%

$389,022 $389.0K

Market Conditions

NOI Build-Up for 2,283 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

$54.8K $24.00/SF

− Vacancy

−$8.1K −$3.55/SF

EGI

$46.7K $20.45/SF

− OpEx

−$11.7K −$5.11/SF

NOI

$35.0K $15.34/SF

Area

Rockingham County, VA

Vacancy

14.80%

Lease Rate

$24.00 /SF/Yr

Expense Ratio

25.00%

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%

$700,240

Cap Rate 7%

$500,171

Cap Rate 9%

$389,022

Alternative Uses

Best Use

Office B

$500.2K

$437.7K – $583.5K (±1% cap)

NOI $35,012 @ 7.0% cap · market cap 3.74%

Second Best

Industrial

$196.2K

$171.7K – $228.9K (±1% cap)

NOI $13,736 @ 7.0% cap · market cap 1.47%

Theoretical Best

Office A

$688.0K

$602.0K – $802.7K (±1% cap)

NOI $48,162 @ 7.0% cap · market cap 5.15%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Flex space

Suggested Use

Top Pick Plumbing Service Kitchen & Bath Showroom Hotel & Motel Wine and Liquor 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

8

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 22841, VA

3,047

Population

1,269

Households

2.4

Avg Household Size

42

Median Age

27%

College-Educated

91%

High-School Grad

30.1 sq mi

ZIP Area

101

Density / Sq Mi

$75,978

Median Household Income

$43,013

Median Earnings

$1,172

Median Rent

$358,300

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 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 flex 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?

Flex space - Updated home with an expanded barn, shop/office, and open bay space, supported by a special use permit.

Where is this flex space located?

The property is located at 5260 East Timber Ridge Road Mount Crawford, VA.

What is the asking price?

The asking price for this property is $935,000.

What are key features of this property?

This property features: 5.22‑acre property with a special use permit for a business operation on‑site; Recent updates: new metal roof, new HVAC, new water system, new flooring, and updated lighting; Septic system and septic field overhauled in 2023, including an expanded septic system to support an office bathroom