Freestanding Commercial Building with BG
For Sale
$949,000
1973 Bay Rd, Milford, DE 19963
Fully leased freestanding building on high-visibility Bay Road, zoned BG for retail, office, and medical uses.
Property Size4,488 SF
Price / SF$211.45
Days on Market95
Property Features for 1973 Bay Rd
General Information
Standard status
Active
Size
4,488 SF
Zoning
BG
Occupancy
100%
Building Details
Year Built
1975
Listing Agency:
R&R Commercial Realty
Listed By:
Keith Walpole, Marie Biro · License #RS-0014425
(302) 674-3400
Source:
Southjerseyshorehomesfinder
Added: Jun 3
Changed: Sep 4
Last Checked: Sep 2 at 7:48PM
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 offering presents a fully leased, income-producing freestanding commercial building comprising approximately 4,400 square feet. The property is positioned as a versatile use asset, with a tenant in place at the time of sale and the structure configured for commercial occupancy.
Located on Bay Road in Milford, Delaware at 1973 Bay Road, the building benefits from high-visibility along a corridor setting. The site is zoned BG (Business General), providing flexibility across a broad range of commercial categories.
Zoned BG, the property supports permitted commercial uses that include retail, office, medical, and service-based businesses, among other options. This makes the building a practical fit for owner-users evaluating a leased asset with an established operating setup, as well as for investors seeking to acquire a freestanding commercial property with an active tenancy and zoning that can accommodate multiple business types.
Located on Bay Road in Milford, Delaware at 1973 Bay Road, the building benefits from high-visibility along a corridor setting. The site is zoned BG (Business General), providing flexibility across a broad range of commercial categories.
Zoned BG, the property supports permitted commercial uses that include retail, office, medical, and service-based businesses, among other options. This makes the building a practical fit for owner-users evaluating a leased asset with an established operating setup, as well as for investors seeking to acquire a freestanding commercial property with an active tenancy and zoning that can accommodate multiple business types.
Key Highlights
- ±4,400 SF freestanding commercial building on Bay Rd.
- Fully leased, providing income‑producing status.
- Zoned BG (Business General).
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
$70,448
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
7.42%
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%
$1,408,960
$1.4M
Cap Rate 7%
$1,006,400
$1.0M
Cap Rate 9%
$782,756
$782.8K
Market Conditions
NOI Build-Up for 4,488 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
$115.3K $25.68/SF
− Vacancy
−$21.3K −$4.75/SF
EGI
$93.9K $20.93/SF
− OpEx
−$23.5K −$5.23/SF
NOI
$70.4K $15.70/SF
Area
Sussex County, DE
Vacancy
18.50%
Lease Rate
$25.68 /SF/Yr
Expense Ratio
25.00%
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%
$1,408,960
Cap Rate 7%
$1,006,400
Cap Rate 9%
$782,756
Alternative Uses
Best Use
Office B
$1.01M
$880.6K – $1.17M
NOI $70,448 @ 7.0% cap · market cap 7.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.23M
$1.08M – $1.44M
NOI $86,331 @ 7.0% cap · market cap 9.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
63
Businesses Nearby
Explore this area
Business Placement
Demographics for 19963, DE
20,827
Population
10,300
Households
2
Avg Household Size
43
Median Age
27%
College-Educated
90%
High-School Grad
105.1 sq mi
ZIP Area
198
Density / Sq Mi
$65,420
Median Household Income
$40,157
Median Earnings
$1,161
Median Rent
$291,200
Median Home Value
Market
Vacancy Rate% for Office in South 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?
Office building - Fully leased freestanding building on high-visibility Bay Road, zoned BG for retail, office, and medical uses.
Where is this office building located?
The property is located at 1973 Bay Rd Milford, DE.
What is the asking price?
The asking price for this property is $949,000.
What are key features of this property?
This property features: ±4,400 SF freestanding commercial building on Bay Rd.; Fully leased, providing income‑producing status.; Zoned BG (Business General).
