Professional Office Building with
For Sale
$948,000
198 Terry Road, Smithtown, NY 11787
Well-maintained 1,683 SF office building on a 10,890 SF lot with NB zoning and an income-producing lower-level tenant.
Property Size1,683 SF
Lot Size0.25 Acres
Price / SF$563.28
Days on Market35
Property Features for 198 Terry Road
General Information
Standard status
Active
Size
1,683 SF
Lot size
0.25 Acres
Zoning
NB
Taxes and HOA fees
Annual Taxes
$16,376
Amenities
Central Air
Forced Air
Building Details
Building Size
1,683 SF
Listing Agency:
Daniel Gale Sothebys Intl Rlty
(516) 428-9505
Listed By:
Michael Tucker
(516) 428-9505
Source:
Evrealestate
Added: Jul 23
Changed: Aug 23
Last Checked: Aug 26 at 7:13AM
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 Daniel Gale Sothebys Intl Rlty
Investment Insights
Based on property information with market context.
This well-maintained professional office building offers 1,683 SF of space on a 10,890 SF lot with Neighborhood Business (NB) zoning. The first floor is suited for an owner-occupant, while the lower level is occupied by an income-producing tenant, providing an existing rental stream.
Located at 198 Terry Rd in Smithtown, the property is positioned for convenient access to major roadways and is surrounded by shopping, restaurants, and the Smithtown business district. Walk Score is 60 (somewhat walkable) and Bike Score is 56 (bikeable), supporting accessible day-to-day business operations.
The building’s configuration supports a live-and-work approach on the first floor while maintaining income from the lower level, making it a practical owner-user option for qualifying professional, medical, or service-related uses under NB zoning.
Located at 198 Terry Rd in Smithtown, the property is positioned for convenient access to major roadways and is surrounded by shopping, restaurants, and the Smithtown business district. Walk Score is 60 (somewhat walkable) and Bike Score is 56 (bikeable), supporting accessible day-to-day business operations.
The building’s configuration supports a live-and-work approach on the first floor while maintaining income from the lower level, making it a practical owner-user option for qualifying professional, medical, or service-related uses under NB zoning.
Key Highlights
- Well‑maintained 1,683 SF professional office building on a 10,890 SF lot
- NB (Neighborhood Business) zoning
- First floor suited for an owner‑occupant
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
$41,351
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
4.36%
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%
$827,020
$827.0K
Cap Rate 7%
$590,729
$590.7K
Cap Rate 9%
$459,456
$459.5K
Market Conditions
NOI Build-Up for 1,683 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
$65.6K $39.00/SF
− Vacancy
−$10.5K −$6.24/SF
EGI
$55.1K $32.76/SF
− OpEx
−$13.8K −$8.19/SF
NOI
$41.4K $24.57/SF
Area
Smithtown, NY
Vacancy
16.00%
Lease Rate
$39.00 /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%
$827,020
Cap Rate 7%
$590,729
Cap Rate 9%
$459,456
Alternative Uses
Best Use
Office B
$590.7K
$516.9K – $689.2K
NOI $41,351 @ 7.0% cap · market cap 4.36%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.04M
$911.9K – $1.22M
NOI $72,948 @ 7.0% cap · market cap 7.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
555
Businesses Nearby
Explore this area
Business Placement
Demographics for 11787, NY
35,361
Population
12,147
Households
2.9
Avg Household Size
45
Median Age
51%
College-Educated
96%
High-School Grad
14.9 sq mi
ZIP Area
2,373
Density / Sq Mi
$141,505
Median Household Income
$64,248
Median Earnings
$2,349
Median Rent
$642,200
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 building - Well-maintained 1,683 SF office building on a 10,890 SF lot with NB zoning and an income-producing lower-level tenant.
Where is this office building located?
The property is located at 198 Terry Road Smithtown, NY.
What is the asking price?
The asking price for this property is $948,000.
What are key features of this property?
This property features: Well‑maintained 1,683 SF professional office building on a 10,890 SF lot; NB (Neighborhood Business) zoning; First floor suited for an owner‑occupant
