Two-Story Concrete Industrial
New
For Sale
Contact for pricing
1617 North 2nd Street, Philadelphia, PA 19122
Load-rated concrete construction supports industrial use and a previously prepared plan for vertical expansion.
Property Size22,000 SF
Lot Size0.26 Acres
Price / SF$131.82
Days on Market5
Property Features for 1617 North 2nd Street
General Information
Standard status
Active
Size
22,000 SF
Lot size
0.26 Acres
Property subtype
Retail, Industrial
Financials
Asking Price
$2,900,000
Opportunity Zone
Yes
Building Details
Buildings
1
Stories
2
Building Size
22,000 SF
Construction
solid concrete
Listing Agency:
REAL of Pennsylvania
Listed By:
Keren Niv · License #RS226324
Source:
Crexi
Added: Sep 2
Changed: Sep 5
Last Checked: Sep 5 at 3:21PM
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 REAL of Pennsylvania
Investment Insights
Based on property information with market context.
This two-story industrial building is constructed of solid concrete and contains approximately 22,000 SF on an 11,318 SF parcel. The structure is load-rated for vertical expansion, and a previously prepared plan set contemplates approximately 40,850 SF of total gross floor area, including 8 bi-level residential units above the existing commercial base and a roof deck.
The property is located at 1617 North 2nd Street in Philadelphia’s Olde Kensington submarket. It lies within a federally designated Qualified Opportunity Zone and is eligible for 1031 exchange treatment. Nearby development includes 288+ residential units delivered or in lease-up within approximately a quarter mile over the past two years, along with 3+ additional projects under construction within approximately one block. The area is served by SEPTA’s Market-Frankford Line at Girard Station and borders the Crane Arts District and American Street Corridor.
The property is located at 1617 North 2nd Street in Philadelphia’s Olde Kensington submarket. It lies within a federally designated Qualified Opportunity Zone and is eligible for 1031 exchange treatment. Nearby development includes 288+ residential units delivered or in lease-up within approximately a quarter mile over the past two years, along with 3+ additional projects under construction within approximately one block. The area is served by SEPTA’s Market-Frankford Line at Girard Station and borders the Crane Arts District and American Street Corridor.
Key Highlights
- Approximately 22,000 SF industrial building on an 11,318 SF parcel
- Two‑story solid concrete construction load‑rated for vertical expansion
- Plan set contemplates approximately 40,850 SF of total gross floor area
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
$261,360
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
9.01%
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%
$5,227,200
$5.2M
Cap Rate 7%
$3,733,714
$3.7M
Cap Rate 9%
$2,904,000
$2.9M
Market Conditions
NOI Build-Up for 22,000 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
$475.2K $21.60/SF
− Vacancy
−$57.0K −$2.59/SF
EGI
$418.2K $19.01/SF
− OpEx
−$156.8K −$7.13/SF
NOI
$261.4K $11.88/SF
Area
Philadelphia, PA
Vacancy
12.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$5,227,200
Cap Rate 7%
$3,733,714
Cap Rate 9%
$2,904,000
Alternative Uses
Best Use
Mixed Use
$3.73M
$3.27M – $4.36M
NOI $261,360 @ 7.0% cap · market cap 9.01%
Second Best
Industrial
$2.31M
$2.02M – $2.69M
NOI $161,515 @ 7.0% cap · market cap 5.57%
Theoretical Best
Multifamily LT 5
$5.36M
$4.69M – $6.26M
NOI $375,428 @ 7.0% cap · market cap 12.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,337
Businesses Nearby
Explore this area
Business Placement
Demographics for 19122, PA
26,668
Population
10,139
Households
2.6
Avg Household Size
28
Median Age
42%
College-Educated
86%
High-School Grad
1.3 sq mi
ZIP Area
20,514
Density / Sq Mi
$57,785
Median Household Income
$31,871
Median Earnings
$1,294
Median Rent
$341,000
Median Home Value
Market
Vacancy Rate% for Industrial in Philadelphia, PA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - Load-rated concrete construction supports industrial use and a previously prepared plan for vertical expansion.
Where is this industrial property located?
The property is located at 1617 North 2nd Street Philadelphia, PA.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: Approximately 22,000 SF industrial building on an 11,318 SF parcel; Two‑story solid concrete construction load‑rated for vertical expansion; Plan set contemplates approximately 40,850 SF of total gross floor area
