Storefront Property with
For Sale
$250,000
1551 SAVANNAH ROAD 4, Lewes, DE 19958
A parking lot accompanies the storefront, which has heat pump service and an electric water heater.
Property Size1,962 SF
Days on Market81
Property Features for 1551 SAVANNAH ROAD 4
General Information
Standard status
Active
Size
1,962 SF
Total Parking Spaces
8
Property subtype
Business Opportunity
Zoning
TN
Amenities
Heat Pump
Electric, Heat Pump
Electric Water Heater
Parking Lot
Building Details
Building Size
1,962 SF
Listing Agency:
R&R Commercial Realty
Listed By:
Keith Walpole · License #RS-0014425
(302) 674-3400
Source:
Evrealestate
Added: Jul 8
Changed: Sep 26
Last Checked: Sep 24 at 2:51PM
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 R&R Commercial Realty
Investment Insights
Based on property information with market context.
This storefront property is located at 1551 Savannah Road in Lewes, Delaware. The property has TN zoning and a parking lot. Building features include a heat pump and an electric water heater.
Key Highlights
- TN zoning
- Parking lot on site
- Heat pump service
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
$17,588
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
7.04%
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%
$351,760
$351.8K
Cap Rate 7%
$251,257
$251.3K
Cap Rate 9%
$195,422
$195.4K
Market Conditions
NOI Build-Up for 1,962 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
$27.1K $13.80/SF
− Vacancy
−$1.9K −$0.99/SF
EGI
$25.1K $12.81/SF
− OpEx
−$7.5K −$3.84/SF
NOI
$17.6K $8.96/SF
Area
Sussex County, DE
Vacancy
7.20%
Lease Rate
$13.80 /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%
$351,760
Cap Rate 7%
$251,257
Cap Rate 9%
$195,422
Alternative Uses
Best Use
Retail
$251.3K
$219.9K – $293.1K
NOI $17,588 @ 7.0% cap · market cap 7.04%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$539.2K
$471.8K – $629.0K
NOI $37,741 @ 7.0% cap · market cap 15.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
831
Businesses Nearby
136k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 30%
Home Improvements & Furnishings 25%
Dining 23%
Groceries 18%
The Home Depot
Home Improvements & Furnishings
34,129 visits/mo
0.4 miles
Weis Markets
Groceries
25,199 visits/mo
0.2 miles
Exxon
Shops & Services
18,243 visits/mo
0.4 miles
Arby's
Dining
12,813 visits/mo
0.3 miles
Grotto Pizza
Dining
9,817 visits/mo
0.4 miles
Demographics for 19958, DE
27,911
Population
19,410
Households
1.4
Avg Household Size
61
Median Age
49%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
590
Density / Sq Mi
$91,445
Median Household Income
$49,124
Median Earnings
$1,654
Median Rent
$488,900
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 - A parking lot accompanies the storefront, which has heat pump service and an electric water heater.
Where is this storefront property located?
The property is located at 1551 SAVANNAH ROAD 4 Lewes, DE.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: TN zoning; Parking lot on site; Heat pump service
