Storefront Space with High
For Sale
$3,500,000
725 Massachusetts Ave, Indianapolis, IN 46204
Storefront space in downtown Indianapolis with high ceilings, modern architecture, and ample natural light.
Property Size14,382 SF
Days on Market25
Property Features for 725 Massachusetts Ave
General Information
Standard status
Active
Size
14,382 SF
Class
C
Property subtype
Street Retail
Building Details
Building Size
14,382 SF
Year Built
1900
Listing Agency:
Halakar, LLC
(317) 536-0218
Listed By:
Colton Snodgrass · License #RB18001545
(317) 536-0218
Source:
Thebrokerlist
Added: Jul 29
Changed: Aug 14
Last Checked: Aug 22 at 3:32AM
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 Halakar, LLC
Investment Insights
Based on property information with market context.
Storefront commercial space at 725 Massachusetts Ave in Indianapolis, built in 1900, offering modern architecture with high ceilings and ample natural light. The layout provides an inviting interior for retail or service concepts that benefit from an open, naturally lit environment.
Positioned in the heart of downtown, the property is described as having convenient access and visibility. The surrounding area is characterized as a hub of commerce, culture, and entertainment, with nearby attractions including the Mass Ave Arts District and Monument Circle.
The space is presented as a flexible option for businesses that want a downtown storefront presence in a highly active mixed-use setting.
Positioned in the heart of downtown, the property is described as having convenient access and visibility. The surrounding area is characterized as a hub of commerce, culture, and entertainment, with nearby attractions including the Mass Ave Arts District and Monument Circle.
The space is presented as a flexible option for businesses that want a downtown storefront presence in a highly active mixed-use setting.
Key Highlights
- High‑ceiling storefront space with modern architecture
- Ample natural light throughout the space
- Built in 1900
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
$154,756
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
4.42%
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%
$3,095,120
$3.1M
Cap Rate 7%
$2,210,800
$2.2M
Cap Rate 9%
$1,719,511
$1.7M
Market Conditions
NOI Build-Up for 14,382 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
$241.6K $16.80/SF
− Vacancy
−$20.5K −$1.43/SF
EGI
$221.1K $15.37/SF
− OpEx
−$66.3K −$4.61/SF
NOI
$154.8K $10.76/SF
Area
Indianapolis, IN
Vacancy
8.50%
Lease Rate
$16.80 /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%
$3,095,120
Cap Rate 7%
$2,210,800
Cap Rate 9%
$1,719,511
Alternative Uses
Best Use
Retail
$2.21M
$1.93M – $2.58M
NOI $154,756 @ 7.0% cap · market cap 4.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.58M
$3.13M – $4.18M
NOI $250,592 @ 7.0% cap · market cap 7.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,313
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 46204, IN
9,086
Population
6,582
Households
1.4
Avg Household Size
31
Median Age
61%
College-Educated
90%
High-School Grad
1.1 sq mi
ZIP Area
8,260
Density / Sq Mi
$88,081
Median Household Income
$69,226
Median Earnings
$1,686
Median Rent
$350,400
Median Home Value
Market
Vacancy Rate% for Retail in Indianapolis, IN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Touch of Class Florist | Send Flowers Indianapolis, IN — 48 E Washington St, Indianapolis, IN 46204
- Smith Florist — 42 Virginia Ave, Indianapolis, IN 46204
- Studio 3 Same Day Flower Delivery CO. — 7 e north st, indianapolis, in 46204
- Violets Are Blue — 241 E 11th St, Indianapolis, IN 46202
- Random Acts of Beauty
Frequently Asked Questions
What type of property is this?
Storefront property - Storefront space in downtown Indianapolis with high ceilings, modern architecture, and ample natural light.
Where is this storefront property located?
The property is located at 725 Massachusetts Ave Indianapolis, IN.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: High‑ceiling storefront space with modern architecture; Ample natural light throughout the space; Built in 1900
