Light Industrial Warehouse with
For Sale
$850,000
2506 Colley Avenue, Norfolk, VA 23517
Freestanding two-story building with office space, grade-level loading, and fenced secure outdoor storage.
Property Size11,591 SF
Price / SF$73.33
Days on Market20
Property Features for 2506 Colley Avenue
General Information
Standard status
Active
Size
11,591 SF
Property subtype
Industrial
Zoning
I-L
Site & Location
Fenced Yard
Yes
Outdoor Storage
Yes
Building Details
Stories
2
Construction
concrete and block
Listing Agency:
CBRE | Norfolk
(757) 364-6441
Listed By:
Jeff Parker, CCIM
(757) 364-6441
Source:
Cbre
Added: Jul 24
Changed: Jul 25
Last Checked: Aug 11 at 9:53AM
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 CBRE | Norfolk
Investment Insights
Based on property information with market context.
This freestanding concrete and block two-story industrial building is designed for light manufacturing or warehouse use and includes office space, plus fenced-in secure outdoor storage. Warehouse/storage areas are located on the first floor and are served by grade-level loading doors. The property also features a secured, fenced parking lot for on-site vehicles and operations.
The indoor warehouse area totals 8,062 SF on the first floor, with an additional 3,528 SF on the second floor. The property is zoned I-L (Light Industrial), supporting indoor and outdoor industrial uses including warehousing, wholesale, distribution, light fabrication, light manufacturing, limited assembly, and light repair and service. The property is located at 2506 Colley Avenue in Norfolk, VA 23517.
The indoor warehouse area totals 8,062 SF on the first floor, with an additional 3,528 SF on the second floor. The property is zoned I-L (Light Industrial), supporting indoor and outdoor industrial uses including warehousing, wholesale, distribution, light fabrication, light manufacturing, limited assembly, and light repair and service. The property is located at 2506 Colley Avenue in Norfolk, VA 23517.
Key Highlights
- 111,591 SF freestanding concrete and block two‑story building with secure on‑site parking
- 8,062 SF warehouse on the first floor with grade‑level loading doors
- 3,528 SF warehouse on the second floor
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
$75,947
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
8.93%
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%
$1,518,940
$1.5M
Cap Rate 7%
$1,084,957
$1.1M
Cap Rate 9%
$843,856
$843.9K
Market Conditions
NOI Build-Up for 11,591 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
$112.7K $9.72/SF
− Vacancy
−$4.2K −$0.36/SF
EGI
$108.5K $9.36/SF
− OpEx
−$32.5K −$2.81/SF
NOI
$75.9K $6.55/SF
Area
Norfolk, VA
Vacancy
3.70%
Lease Rate
$9.72 /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%
$1,518,940
Cap Rate 7%
$1,084,957
Cap Rate 9%
$843,856
Alternative Uses
Best Use
Flex RnD
$1.61M
$1.41M – $1.88M
NOI $112,831 @ 7.0% cap · market cap 13.27%
Second Best
Warehouse
$1.32M
$1.15M – $1.54M
NOI $92,222 @ 7.0% cap · market cap 10.85%
Theoretical Best
Office A
$2.46M
$2.15M – $2.87M
NOI $172,120 @ 7.0% cap · market cap 20.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
3,123
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 23517, VA
5,237
Population
2,901
Households
1.8
Avg Household Size
33
Median Age
55%
College-Educated
97%
High-School Grad
0.8 sq mi
ZIP Area
6,546
Density / Sq Mi
$63,556
Median Household Income
$46,689
Median Earnings
$1,397
Median Rent
$355,800
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Freestanding two-story building with office space, grade-level loading, and fenced secure outdoor storage.
Where is this flex space located?
The property is located at 2506 Colley Avenue Norfolk, VA.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 111,591 SF freestanding concrete and block two‑story building with secure on‑site parking; 8,062 SF warehouse on the first floor with grade‑level loading doors; 3,528 SF warehouse on the second floor
