Second-Floor Office
New
For Sale
$3,200,000
178 Avenue U, Brooklyn, NY 11223
Commercial, Brooklyn, NY
Property Size3,080 SF
Lot Size0.04 Acres
Price / SF$1,038
Days on Market4
Property Features for 178 Avenue U
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
R5
Basement
Full
Subdivision
Gravesend
Standard status
Active
Size
3,080 SF
Lot size
0.04 Acres
Taxes and HOA fees
Tax Annual Amount
20842
Amenities
private restroom
dedicated HVAC
secure entry
Building Details
Year built
1931
Floors in Building
2
Number of units
2
Building materials
Brick
Roof type
Rubber, Flat
Listing Agency:
RE/MAX Real Estate Professiona
(718) 532-2000
Listed By:
Vito Angelo · License #VITLO524
(718) 887-5708
Added: Sep 3
Changed: Sep 5
Last Checked: Sep 6 at 4:06AM
MLS# 504249
Copyright © 2026 Brooklyn New York Multiple Listing Service. 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.
Unit 2 is a 3,080-square-foot, second-floor office property with an open interior configuration that can accommodate private offices, treatment rooms, collaborative work areas, or showroom space. Large front-facing windows provide natural light and signage placement, while high ceilings, clean finishes, a private restroom, dedicated HVAC, and secure entry support day-to-day commercial use. The building was constructed in 1931 with brick construction and a flat rubber roof.
The property is located at 178 Avenue U in Brooklyn, NY 11223. Transportation access includes the N train at Avenue U, multiple bus lines, Ocean Parkway, and Kings Highway. The surrounding area includes established retailers, restaurants, and neighborhood amenities. The property is zoned R5.
The property is located at 178 Avenue U in Brooklyn, NY 11223. Transportation access includes the N train at Avenue U, multiple bus lines, Ocean Parkway, and Kings Highway. The surrounding area includes established retailers, restaurants, and neighborhood amenities. The property is zoned R5.
Key Highlights
- 3,080‑square‑foot second‑floor commercial unit
- Open layout adaptable to offices, treatment rooms, collaborative areas, or showroom space
- Large front‑facing windows with natural light and signage placement
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
1
Office units
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
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Frequently Asked Questions
What type of property is this?
Office units - Open layout with front-facing windows, private restroom, and dedicated HVAC.
Where is this office units 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: 3,080‑square‑foot second‑floor commercial unit; Open layout adaptable to offices, treatment rooms, collaborative areas, or showroom space; Large front‑facing windows with natural light and signage placement
