Renovated Corner
New
For Sale
$250,000
205 E CHESTNUT STREET, Lancaster, PA 17602
Commercially zoned property with gas heat, central air, and updated building systems.
Property Size1,742 SF
Price / SF$143.51
Days on Market5
Property Features for 205 E CHESTNUT STREET
General Information
Standard status
Active
Size
1,742 SF
Property subtype
Commercial
Zoning
Commercial
Amenities
gas heat
central air
Building Details
Year Built
1900
Year Renovated
2007
Buildings
1
Listing Agency:
Howard Hanna Real Estate Services - Lancaster
(717) 392-0200
Listed By:
Matt Ziegler · License #RS294145
(717) 538-2826
Source:
Cummingsrealtors
Added: Sep 14
Changed: Sep 17
Last Checked: Sep 18 at 6:31AM
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 Howard Hanna Real Estate Services - Lancaster
Investment Insights
Based on property information with market context.
This corner storefront property was built in 1900 and underwent a full renovation in 2007. The work included new wiring, plumbing, and major mechanical systems. The building is served by gas heat and central air, providing updated core infrastructure for its current commercial classification.
The property sits across from Musser Park, with a parking lot located one block west on Chestnut offering roughly 10 spaces available for rent. The neighboring corner building is also available for lease and formerly housed Williams Apothecary for more than 50 years.
The property sits across from Musser Park, with a parking lot located one block west on Chestnut offering roughly 10 spaces available for rent. The neighboring corner building is also available for lease and formerly housed Williams Apothecary for more than 50 years.
Key Highlights
- Full renovation completed in 2007 with new wiring, plumbing, and major mechanical systems
- Commercial zoning with storefront configuration
- Gas heat and central air
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
$20,501
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
8.20%
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%
$410,020
$410.0K
Cap Rate 7%
$292,871
$292.9K
Cap Rate 9%
$227,789
$227.8K
Market Conditions
NOI Build-Up for 1,742 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
$31.4K $18.00/SF
− Vacancy
−$2.1K −$1.19/SF
EGI
$29.3K $16.81/SF
− OpEx
−$8.8K −$5.04/SF
NOI
$20.5K $11.77/SF
Area
Lancaster County, PA
Vacancy
6.60%
Lease Rate
$18.00 /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%
$410,020
Cap Rate 7%
$292,871
Cap Rate 9%
$227,789
Alternative Uses
Best Use
Retail
$292.9K
$256.3K – $341.7K
NOI $20,501 @ 7.0% cap · market cap 8.20%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$583.8K
$510.8K – $681.1K
NOI $40,863 @ 7.0% cap · market cap 16.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
4,666
Businesses Nearby
86k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Hotels & Casinos 47%
Shops & Services 38%
Groceries 11%
Dining 2%
Lancaster Marriott
Hotels & Casinos
40,779 visits/mo
0.4 miles
C-Town Supermarkets
Groceries
9,025 visits/mo
0.3 miles
Sunoco
Shops & Services
8,706 visits/mo
0.5 miles
Turkey Hill Minit Market
Shops & Services
8,115 visits/mo
0.2 miles
Family Dollar
Shops & Services
7,630 visits/mo
0.5 miles
Demographics for 17602, PA
52,665
Population
19,472
Households
2.7
Avg Household Size
37
Median Age
28%
College-Educated
83%
High-School Grad
24.6 sq mi
ZIP Area
2,141
Density / Sq Mi
$71,752
Median Household Income
$38,469
Median Earnings
$1,272
Median Rent
$250,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Northeast region
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Frequently Asked Questions
What type of property is this?
Storefront property - Commercially zoned property with gas heat, central air, and updated building systems.
Where is this storefront property located?
The property is located at 205 E CHESTNUT STREET Lancaster, PA.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: Full renovation completed in 2007 with new wiring, plumbing, and major mechanical systems; Commercial zoning with storefront configuration; Gas heat and central air
