Freeway Drive Commercial
For Sale
Contact for pricing
Pending
1418 Freeway Drive, Reidsville, NC 27320
2,700 sq. ft. building on busy Freeway Drive.
Property Size2,785 SF
Days on Market177
Property Features for 1418 Freeway Drive
General Information
Standard status
Pending
Size
2,785 SF
Property subtype
Special Purpose
Zoning
HB/RD
Building Details
Year Built
1984
Buildings
1
Stories
1
Listing Agency:
CENTURY 21 The Knowles Team
(336) 342-2022
Listed By:
Teresa Knowles · License #169794
Source:
Crexi
Added: Feb 24
Changed: Aug 9
Last Checked: Aug 8 at 12:23PM
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 CENTURY 21 The Knowles Team
Investment Insights
Based on property information with market context.
This 2,700 sq. ft. all-brick building is located on Freeway Drive and offers street visibility and high traffic exposure. Currently operating as a hair salon, the layout includes a spacious main salon area with 12 booths, a reception area, and four private rooms suitable for esthetics, massage, or specialty services. It also features a break room with private lockers. The flexible floor plan allows for division into two separate units. Ample parking is available in both the front and rear of the building. The property is suitable for salon professionals, a medical spa, boutique retail, office space, or investment purposes. The location is convenient for commuters accessing from Danville, VA, Eden, and Greensboro. From Hwy 29, exit 149 into Reidsville; the building will be on the right on Freeway Drive. Use Front Street to access the building's back parking lot.
Key Highlights
- High‑visibility location on busy Freeway Drive with excellent traffic exposure.
- 2,700 sq. ft. all‑brick building with flexible floor plan** divisible into two units.
- Currently operating as a successful hair salon with 12 booths, reception area, and four private rooms.
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
$27,403
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
5.05%
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%
$548,060
$548.1K
Cap Rate 7%
$391,471
$391.5K
Cap Rate 9%
$304,478
$304.5K
Market Conditions
NOI Build-Up for 2,785 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
$41.8K $15.00/SF
− Vacancy
−$2.6K −$0.94/SF
EGI
$39.1K $14.06/SF
− OpEx
−$11.7K −$4.22/SF
NOI
$27.4K $9.84/SF
Area
Rockingham County, NC
Vacancy
6.29%
Lease Rate
$15.00 /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%
$548,060
Cap Rate 7%
$391,471
Cap Rate 9%
$304,478
Alternative Uses
Best Use
Retail
$391.5K
$342.5K – $456.7K
NOI $27,403 @ 7.0% cap · market cap 5.05%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$918.2K
$803.4K – $1.07M
NOI $64,274 @ 7.0% cap · market cap 11.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
217
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 27320, NC
37,843
Population
17,876
Households
2.1
Avg Household Size
44
Median Age
17%
College-Educated
85%
High-School Grad
244.9 sq mi
ZIP Area
155
Density / Sq Mi
$55,491
Median Household Income
$37,258
Median Earnings
$776
Median Rent
$170,700
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - 2,700 sq. ft. building on busy Freeway Drive.
Where is this storefront property located?
The property is located at 1418 Freeway Drive Reidsville, NC.
What is the asking price?
The asking price for this property is $542,900.
What are key features of this property?
This property features: High‑visibility location on busy Freeway Drive with excellent traffic exposure.; 2,700 sq. ft. all‑brick building with flexible floor plan** divisible into two units.; Currently operating as a successful hair salon with 12 booths, reception area, and four private rooms.
