Mixed-Use Property With Office
New
For Sale
$850,000
2089 S DUPONT HWY, Dover, DE 19901
Two-level commercial building includes a kitchen facility, shared conference room, and restrooms on both floors.
Property Size6,962 SF
Days on Market5
Property Features for 2089 S DUPONT HWY
General Information
Standard status
Active
Size
6,962 SF
Property subtype
Retail
Additional Details
Road Access
Yes
Office Units
18
Taxes and HOA fees
Annual Taxes
$5,575
Amenities
shared conference room
full operating kitchen facility
Building Details
Building Size
6,962 SF
Year Built
1955
Stories
2
Tenancy
Multi
Listing Agency:
Diamond State Cooperative LLC
(302) 682-0722
Listed By:
Monica G. Leblanc · License #RB-0020269
(302) 682-0722
Source:
Barnesrealestatecompany
Added: Aug 2
Changed: Aug 3
Last Checked: Aug 6 at 3:51AM
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 Diamond State Cooperative LLC
Investment Insights
Based on property information with market context.
This mixed-use commercial property contains office space on the upper level and a kitchen-equipped area on the ground floor. Seven upstairs offices are occupied under year-long leases, while six additional office spaces are available for immediate occupancy. A shared conference room serves the building’s tenants, and restrooms are provided on both floors. The property was built in 1955.
Located on Route 13 south of Dover, the building is positioned across from the Puncheon Run connector and Rodney Village Shopping Center. Parking is shared with neighboring property owners under established cross-access and maintenance easements. The combination of existing office tenancy, available suites, shared facilities, and a kitchen-equipped lower level supports a range of commercial configurations within the existing improvements.
Located on Route 13 south of Dover, the building is positioned across from the Puncheon Run connector and Rodney Village Shopping Center. Parking is shared with neighboring property owners under established cross-access and maintenance easements. The combination of existing office tenancy, available suites, shared facilities, and a kitchen-equipped lower level supports a range of commercial configurations within the existing improvements.
Key Highlights
- Seven upstairs offices are rented with year leases in place
- Six additional office spaces available for immediate occupancy
- Ground‑floor area includes a full kitchen facility
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
$63,291
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
7.45%
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%
$1,265,820
$1.3M
Cap Rate 7%
$904,157
$904.2K
Cap Rate 9%
$703,233
$703.2K
Market Conditions
NOI Build-Up for 6,962 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
$97.7K $14.04/SF
− Vacancy
−$7.3K −$1.05/SF
EGI
$90.4K $12.99/SF
− OpEx
−$27.1K −$3.90/SF
NOI
$63.3K $9.09/SF
Area
Kent County, DE
Vacancy
7.50%
Lease Rate
$14.04 /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%
$1,265,820
Cap Rate 7%
$904,157
Cap Rate 9%
$703,233
Alternative Uses
Best Use
Office B
$1.35M
$1.18M – $1.58M
NOI $94,571 @ 7.0% cap · market cap 11.13%
Second Best
Mixed Use
$1.28M
$1.12M – $1.50M
NOI $89,820 @ 7.0% cap · market cap 10.57%
Theoretical Best
Office A
$1.75M
$1.53M – $2.05M
NOI $122,715 @ 7.0% cap · market cap 14.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
18
Office units
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
433
Businesses Nearby
Explore this area
Business Placement
Demographics for 19901, DE
36,839
Population
15,443
Households
2.4
Avg Household Size
34
Median Age
27%
College-Educated
89%
High-School Grad
75.8 sq mi
ZIP Area
486
Density / Sq Mi
$63,891
Median Household Income
$33,069
Median Earnings
$1,353
Median Rent
$258,400
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-level commercial building includes a kitchen facility, shared conference room, and restrooms on both floors.
Where is this mixed-use property located?
The property is located at 2089 S DUPONT HWY Dover, DE.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Seven upstairs offices are rented with year leases in place; Six additional office spaces available for immediate occupancy; Ground‑floor area includes a full kitchen facility
