Building Details

Year built 2003

Number of units 7

Listing Agency: First Hampton Int'l Realty LLC L*@fhirny.com Show Phone

Listed By: Lawrence Citarelli · License #L3532932 Show Phone

Added: Sep 12, 2022 Changed: Aug 4 Last Checked: Aug 19 at 7:06PM

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MLS# L3429590

Copyright © 2026 OneKey MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

Flex space commercial building with approximately 13,000+/- SF and a 100% occupancy rate, with vacancy at 0. Built in 2003 and zoned Comm, the property is served by propane heating and a septic tank sewer system.

Located at 137 Montauk Highway in Westhampton, Suffolk County. The facility supports a wide range of flex-oriented uses, including specialty trade, contractor, warehouse, storage, office, industrial, showroom, retail, professional, and creative.

The asset can support investors or end users seeking an occupied flex building with tenant-based operations and existing space for a variety of business applications.

Key Highlights

• Approximately 13,000+/- SF flex space building
• 100% occupied with vacancy at 0
• Built in 2003

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

$199,218

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

3.80%

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%

$3,984,360 $4.0M

Cap Rate 7%

$2,845,971 $2.8M

Cap Rate 9%

$2,213,533 $2.2M

Market Conditions

NOI Build-Up for 13,000 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

$249.6K $19.20/SF

− Vacancy

−$15.2K −$1.17/SF

EGI

$234.4K $18.03/SF

− OpEx

−$35.2K −$2.70/SF

NOI

$199.2K $15.32/SF

Area

Suffolk County, NY

Vacancy

6.10%

Lease Rate

$19.20 /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%

$3,984,360

Cap Rate 7%

$2,845,971

Cap Rate 9%

$2,213,533

Alternative Uses

Best Use

Warehouse

$2.85M

$2.49M – $3.32M (±1% cap)

NOI $199,218 @ 7.0% cap · market cap 3.80%

Second Best

Industrial

$2.64M

$2.31M – $3.08M (±1% cap)

NOI $184,570 @ 7.0% cap · market cap 3.52%

Theoretical Best

Office A

$3.96M

$3.47M – $4.62M (±1% cap)

NOI $277,228 @ 7.0% cap · market cap 5.29%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Next Level Auto ... Interior Design Remodel Showroom Hardware & Home Improvement General Home Solution Consultant Dune Millwork Association Or Organization

Suggested Use

Top Pick Building Supply Parking Lot & Garage Law Firm HVAC Service Electrical Service Dental Office

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

100%

Occupancy

Location Intelligence

Trade Area within ½ mile

83

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 11977, NY

2,837

Population

1,594

Households

1.8

Avg Household Size

51

Median Age

57%

College-Educated

94%

High-School Grad

5.7 sq mi

ZIP Area

498

Density / Sq Mi

$156,406

Median Household Income

$52,500

Median Earnings

$2,031

Median Rent

$1,039,300

Median Home Value

Market

Vacancy Rate% for Industrial in Northeast region

5.4% 2019

4.6% 2020

3.2% 2021

3.3% 2022

5.3% 2023

6.6% 2024

7.6% 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?

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Frequently Asked Questions

What type of property is this?

Flex space - Flex space building built in 2003, zoned Comm, with propane heat and septic service, 100% occupied.

Where is this flex space located?

The property is located at 137 Montauk Highway West Hampton, NY.

What is the asking price?

The asking price for this property is $5,245,000.

What are key features of this property?

This property features: Approximately 13,000+/- SF flex space building; 100% occupied with vacancy at 0; Built in 2003