Multi-Suite Office
For Sale
$775,000
200 S Kellam Rd, Virginia Beach, VA 23462
Compact office property with several suites, B-2 zoning, and access to Virginia Beach’s Central Business District.
Property Size2,220 SF
Lot Size0.21 Acres
Price / SF$349.10
Days on Market8
Property Features for 200 S Kellam Rd
General Information
Standard status
Active
Size
2,220 SF
Class
C
Lot size
0.21 Acres
Property subtype
Office
Zoning
B-2
Additional Details
Highway Access
Yes
Building Details
Building Size
2,220 SF
Year Built
1960
Buildings
1
Listing Agency:
Divaris Real Estate - Hampton Roads
(757) 724-2243
Listed By:
Neal Sadler
Source:
Divaris
Added: Aug 1
Changed: Aug 8
Last Checked: Aug 8 at 3:50AM
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 Divaris Real Estate - Hampton Roads
Investment Insights
Based on property information with market context.
The property is a 2,220-square-foot office building constructed in 1960 on a 0.21-acre parcel. Its several smaller suites create a multi-occupant layout that can accommodate an owner-user, multiple occupants, or a blended arrangement. B-2 zoning adds flexibility for office-oriented use, while the existing configuration supports immediate occupancy or rental operations.
Located at 200 S Kellam Rd in Virginia Beach, the property sits near the I-264 and Independence Boulevard interchange. Best Buy is adjacent, and Virginia Beach Town Center is nearby. The site is within the city’s Central Business District, providing a centrally positioned office setting with convenient regional access.
Located at 200 S Kellam Rd in Virginia Beach, the property sits near the I-264 and Independence Boulevard interchange. Best Buy is adjacent, and Virginia Beach Town Center is nearby. The site is within the city’s Central Business District, providing a centrally positioned office setting with convenient regional access.
Key Highlights
- 2,220‑square‑foot office building on a 0.21‑acre parcel
- Several smaller office suites support multi‑occupant use
- B‑2 zoning
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
$28,187
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
3.64%
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%
$563,740
$563.7K
Cap Rate 7%
$402,671
$402.7K
Cap Rate 9%
$313,189
$313.2K
Market Conditions
NOI Build-Up for 2,220 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
$44.0K $19.80/SF
− Vacancy
−$6.4K −$2.87/SF
EGI
$37.6K $16.93/SF
− OpEx
−$9.4K −$4.23/SF
NOI
$28.2K $12.70/SF
Area
ZIP 23462
Vacancy
14.50%
Lease Rate
$19.80 /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%
$563,740
Cap Rate 7%
$402,671
Cap Rate 9%
$313,189
Alternative Uses
Best Use
Office B
$402.7K
$352.3K – $469.8K
NOI $28,187 @ 7.0% cap · market cap 3.64%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$471.5K
$412.6K – $550.1K
NOI $33,004 @ 7.0% cap · market cap 4.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,316
Businesses Nearby
Explore this area
Business Placement
Demographics for 23462, VA
68,045
Population
29,729
Households
2.3
Avg Household Size
34
Median Age
31%
College-Educated
94%
High-School Grad
11.0 sq mi
ZIP Area
6,186
Density / Sq Mi
$69,680
Median Household Income
$43,613
Median Earnings
$1,652
Median Rent
$269,400
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 - Compact office property with several suites, B-2 zoning, and access to Virginia Beach’s Central Business District.
Where is this office building located?
The property is located at 200 S Kellam Rd Virginia Beach, VA.
What is the asking price?
The asking price for this property is $775,000.
What are key features of this property?
This property features: 2,220‑square‑foot office building on a 0.21‑acre parcel; Several smaller office suites support multi‑occupant use; B‑2 zoning
