Second-Floor Retail
New
For Sale
$3,200,000
178 Avenue U, Brooklyn, NY 11223
Open commercial layout with street-facing windows, dedicated HVAC, private restroom, and controlled building access.
Property Size3,080 SF
Days on Market2
Property Features for 178 Avenue U
General Information
Standard status
Active
Size
3,080 SF
Property subtype
Commercial
Site & Location
Highway Access
Yes
Public Transit
Yes
Additional Details
Floor
2
Taxes and HOA fees
Annual Taxes
$20,842
Amenities
private restroom
dedicated HVAC
secure entry
Building Details
Building Size
3,080 SF
Year Built
1931
Stories
2
Listing Agency:
Remax Real Estate Professionals
Listed By:
Vito Angelo · License #VITLO524
(718) 532-2000
Source:
Elliman
Added: Sep 6
Last Checked: Sep 6 at 2:55PM
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 Remax Real Estate Professionals
Investment Insights
Based on property information with market context.
Unit 2 is a second-floor retail space at 178 Avenue U with an open interior arrangement, tall ceilings, clean finishes, and large windows facing the street. The layout can accommodate offices, treatment rooms, collaborative areas, or showroom functions. A private restroom, dedicated HVAC, and secure entry add practical operating features. The property was built in 1931.
The address is near the N train at Avenue U, multiple bus lines, Ocean Parkway, and Kings Highway. Established retailers, restaurants, and neighborhood services surround the property. Walk Score is 96, Transit Score is 86, and Bike Score is 67.
The address is near the N train at Avenue U, multiple bus lines, Ocean Parkway, and Kings Highway. Established retailers, restaurants, and neighborhood services surround the property. Walk Score is 96, Transit Score is 86, and Bike Score is 67.
Key Highlights
- Second‑floor Unit 2 at 178 Avenue U
- Large street‑facing windows with signage potential
- Open layout with high ceilings and clean finishes
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
$147,700
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
4.62%
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%
$2,954,000
$3.0M
Cap Rate 7%
$2,110,000
$2.1M
Cap Rate 9%
$1,641,111
$1.6M
Market Conditions
NOI Build-Up for 3,080 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
$239.5K $77.76/SF
− Vacancy
−$28.5K −$9.25/SF
EGI
$211.0K $68.51/SF
− OpEx
−$63.3K −$20.55/SF
NOI
$147.7K $47.95/SF
Area
Brooklyn, NY
Vacancy
11.90%
Lease Rate
$77.76 /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%
$2,954,000
Cap Rate 7%
$2,110,000
Cap Rate 9%
$1,641,111
Alternative Uses
Best Use
Retail
$2.11M
$1.85M – $2.46M
NOI $147,700 @ 7.0% cap · market cap 4.62%
Second Best
Office B
$1.10M
$960.5K – $1.28M
NOI $76,840 @ 7.0% cap · market cap 2.40%
Theoretical Best
Specialty Retail
$2.55M
$2.23M – $2.98M
NOI $178,517 @ 7.0% cap · market cap 5.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
3,120
Businesses Nearby
Explore this area
Business Placement
Demographics for 11223, NY
83,519
Population
28,857
Households
2.9
Avg Household Size
37
Median Age
34%
College-Educated
78%
High-School Grad
2.1 sq mi
ZIP Area
39,771
Density / Sq Mi
$63,950
Median Household Income
$40,592
Median Earnings
$1,653
Median Rent
$1,063,200
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Retail space - Open commercial layout with street-facing windows, dedicated HVAC, private restroom, and controlled building access.
Where is this retail space located?
The property is located at 178 Avenue U Brooklyn, NY.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: Second‑floor Unit 2 at 178 Avenue U; Large street‑facing windows with signage potential; Open layout with high ceilings and clean finishes
