Class A Office
For Sale
$4,000,000
2583 Gateway Dr State, State College, PA 16801
Class A office building offering flexible options to lease or purchase an office condo or the full building.
Property Size22,352 SF
Price / SF$372.09
Days on Market27
Property Features for 2583 Gateway Dr State
General Information
Standard status
Active
Size
22,352 SF
Class
A
Total Parking Spaces
98
Property subtype
Office, Commercial
Zoning
Light Industrial
Building Details
Building Size
22,352 SF
Listing Agency:
Bennett Williams Commercial
(814) 574-5570
Listed By:
Kandy Weader · License #RS315162
(814) 574-5570
Source:
Bennettwilliams
Added: Jul 29
Changed: Aug 23
Last Checked: Aug 22 at 10:48AM
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 Bennett Williams Commercial
Investment Insights
Based on property information with market context.
Class A office building totaling 22,352 SF, with an opportunity to lease or purchase an office condo. The offering also includes the option to purchase the entire building.
The property is described as easily accessible from Penn State University and downtown State College, and is about a 5-minute drive from I-99. The building is positioned within a professional office community.
The layout supports office use with a focus on day-to-day business operations, and the condo or whole-building structure provides flexibility depending on whether an owner-occupier or another user is seeking a portion of the building or the full asset.
The property is described as easily accessible from Penn State University and downtown State College, and is about a 5-minute drive from I-99. The building is positioned within a professional office community.
The layout supports office use with a focus on day-to-day business operations, and the condo or whole-building structure provides flexibility depending on whether an owner-occupier or another user is seeking a portion of the building or the full asset.
Key Highlights
- Class A office building totaling 22,352 SF
- Opportunity to lease or purchase an office condo
- Also available as a purchase of the entire building
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
$124,082
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
3.10%
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%
$2,481,640
$2.5M
Cap Rate 7%
$1,772,600
$1.8M
Cap Rate 9%
$1,378,689
$1.4M
Market Conditions
NOI Build-Up for 10,750 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
$193.5K $18.00/SF
− Vacancy
−$28.1K −$2.61/SF
EGI
$165.4K $15.39/SF
− OpEx
−$41.4K −$3.85/SF
NOI
$124.1K $11.54/SF
Area
Centre County, PA
Vacancy
14.50%
Lease Rate
$18.00 /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%
$2,481,640
Cap Rate 7%
$1,772,600
Cap Rate 9%
$1,378,689
Alternative Uses
Best Use
Office B
$1.77M
$1.55M – $2.07M
NOI $124,082 @ 7.0% cap · market cap 3.10%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.37M
$2.08M – $2.77M
NOI $166,193 @ 7.0% cap · market cap 4.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
367
Businesses Nearby
Explore this area
Business Placement
Demographics for 16801, PA
42,446
Population
19,242
Households
2.2
Avg Household Size
28
Median Age
67%
College-Educated
98%
High-School Grad
31.1 sq mi
ZIP Area
1,365
Density / Sq Mi
$62,821
Median Household Income
$27,598
Median Earnings
$1,221
Median Rent
$400,400
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Class A office building offering flexible options to lease or purchase an office condo or the full building.
Where is this office building located?
The property is located at 2583 Gateway Dr State State College, PA.
What is the asking price?
The asking price for this property is $4,000,000.
What are key features of this property?
This property features: Class A office building totaling 22,352 SF; Opportunity to lease or purchase an office condo; Also available as a purchase of the entire building
