Listing Agency: R.W. Holmes Commercial Real Estate Show Phone

Listed By: Dean Blackey · License #9031258-RE-S Show Phone

Source: Moodyscre

Added: Dec 5, 2024 Changed: Jul 6 Last Checked: Aug 12 at 6:39AM

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Investment Insights

Based on property information with market context.

Located directly off Route 27 in downtown Sherborn, Massachusetts, 20 North Main Street is a 14,400 square foot office complex available for sale for the first time. Constructed in 1984 by Timberpeg, the building features a post and beam design. Currently used as a multi-tenant office building, its open layout allows for easy conversion to single-occupant use. Existing leases have been intentionally converted to tenancy at will, providing flexibility for potential users to occupy the entire building or lease out unused space. The property is located in the heart of downtown Sherborn.

Key Highlights

• Prime location in the heart of downtown Sherborn, directly off Route 27.
• 14,400 SF office complex with potential for single or multi‑tenant use.
• Unique open layout allows for flexible space utilization and easy conversion.

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

$456,918

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

8.96%

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%

$9,138,360 $9.1M

Cap Rate 7%

$6,527,400 $6.5M

Cap Rate 9%

$5,076,867 $5.1M

Market Conditions

NOI Build-Up for 14,400 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

$781.1K $54.24/SF

− Vacancy

−$171.8K −$11.93/SF

EGI

$609.2K $42.31/SF

− OpEx

−$152.3K −$10.58/SF

NOI

$456.9K $31.73/SF

Area

Middlesex County, MA

Vacancy

22.00%

Lease Rate

$54.24 /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%

$9,138,360

Cap Rate 7%

$6,527,400

Cap Rate 9%

$5,076,867

Alternative Uses

Best Use

Office B

$6.53M

$5.71M – $7.62M (±1% cap)

NOI $456,918 @ 7.0% cap · market cap 8.96%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$8.52M

$7.46M – $9.95M (±1% cap)

NOI $596,732 @ 7.0% cap · market cap 11.70%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

R & P Lowell ... Architect Raymond James Financial ... Financial Advisor Howland Company, Inc. Construction Company Bolt & Lambert Elec ... Electrical Service Heaven On Earth Antiques ... Home Decor Store

Suggested Use

Top Pick Building Supply Auto Repair Shop Dental Office HVAC Service Real Estate Agency Electrical Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

159

Businesses Nearby

Explore this area Business Placement

Market

Vacancy Rate% for Office in Northeast region

13.1% 2019

15.4% 2020

17.6% 2021

19.1% 2022

20.2% 2023

20.9% 2024

19.9% 2025

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Frequently Asked Questions

What type of property is this?

Office building - 14,400 SF office complex in downtown Sherborn, Massachusetts.

Where is this office building located?

The property is located at 20 N Main St Sherborn, MA.

What is the asking price?

The asking price for this property is $5,100,000.

What are key features of this property?

This property features: Prime location in the heart of downtown Sherborn, directly off Route 27.; 14,400 SF office complex with potential for single or multi‑tenant use.; Unique open layout allows for flexible space utilization and easy conversion.