Warehouse with New Roof and
For Sale
Contact for pricing
3405 Commerce Rd, Richmond, VA 23234
Warehouse fronting I-95 with three loading docks, 12' ceilings, and a new roof with 20-year warranty.
Property Size42,628 SF
Price / SF$119.64
Days on Market773
Property Features for 3405 Commerce Rd
General Information
Standard status
Active
Size
42,628 SF
Property subtype
INDUSTRIAL
Site & Location
Traffic Count
10,000 vehicles/day
Highway Access
Yes
Warehouse & Industrial
Clear Height
12 ft
Dock-High Doors
3
Listing Agency:
One South Commercial
(804) 353-0009
Listed By:
Tom Rosman · License #0225030879
(804) 539-3017
Source:
Moodyscre
Added: Jul 30, 2024
Changed: Aug 14
Last Checked: Sep 10 at 10:44AM
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 One South Commercial
Investment Insights
Based on property information with market context.
This warehouse offers 41,396 square feet with 12' ceilings and three loading docks. The property includes a new roof with a 20-year warranty, and it is currently occupied by a strong local tenant.
The building fronts I-95, providing high daily exposure with more than 10,000 vehicles per day reported on the interstate.
For sale at 3405 Commerce Rd in Richmond, VA 23234, this facility is positioned for straightforward industrial use within an established, roadway-accessible setting.
The building fronts I-95, providing high daily exposure with more than 10,000 vehicles per day reported on the interstate.
For sale at 3405 Commerce Rd in Richmond, VA 23234, this facility is positioned for straightforward industrial use within an established, roadway-accessible setting.
Key Highlights
- 41,396 SF warehouse fronting I‑95 with three loading docks
- 12' ceilings
- New roof with a 20‑year warranty
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
$404,804
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
7.94%
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%
$8,096,080
$8.1M
Cap Rate 7%
$5,782,914
$5.8M
Cap Rate 9%
$4,497,822
$4.5M
Market Conditions
NOI Build-Up for 42,628 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
$501.3K $11.76/SF
− Vacancy
−$25.1K −$0.59/SF
EGI
$476.2K $11.17/SF
− OpEx
−$71.4K −$1.68/SF
NOI
$404.8K $9.50/SF
Area
Richmond, VA
Vacancy
5.00%
Lease Rate
$11.76 /SF/Yr
Expense Ratio
15.00%
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%
$8,096,080
Cap Rate 7%
$5,782,914
Cap Rate 9%
$4,497,822
Alternative Uses
Best Use
Warehouse
$5.78M
$5.06M – $6.75M
NOI $404,804 @ 7.0% cap · market cap 7.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.85M
$8.62M – $11.49M
NOI $689,395 @ 7.0% cap · market cap 13.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
12 ft
Clear height
3
Dock-high doors
10,000 VPD
Traffic count
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
85
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 23234, VA
46,610
Population
18,167
Households
2.6
Avg Household Size
35
Median Age
20%
College-Educated
80%
High-School Grad
19.1 sq mi
ZIP Area
2,440
Density / Sq Mi
$63,630
Median Household Income
$37,661
Median Earnings
$1,321
Median Rent
$237,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Richmond, VA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Warehouse fronting I-95 with three loading docks, 12' ceilings, and a new roof with 20-year warranty.
Where is this warehouse located?
The property is located at 3405 Commerce Rd Richmond, VA.
What is the asking price?
The asking price for this property is $5,100,000.
What are key features of this property?
This property features: 41,396 SF warehouse fronting I‑95 with three loading docks; 12' ceilings; New roof with a 20‑year warranty
