Office Building with
For Sale
$1,800,000
216-218 Rigsbee Avenue, Durham, NC 27701
Three-story office property with mezzanine amenities and access to Downtown Durham’s retail, dining, arts, and entertainment district.
Property Size10,461 SF
Lot Size0.07 Acres
Price / SF$172.07
Days on Market67
Property Features for 216-218 Rigsbee Avenue
General Information
Standard status
Active
Size
10,461 SF
Class
C
Elevators
Yes
Lot size
0.07 Acres
Property subtype
Office
Additional Details
Asking Price
$1,800,000
Building Details
Building Size
10,461 SF
Year Built
1936
Buildings
1
Stories
3
Listing Agency:
(919) 819-9223
Listed By:
Derek Mangum · License #NC #243683
(919) 819-9223
Source:
Maverickpartners
Added: Jun 25
Changed: Aug 30
Last Checked: Aug 30 at 12:02AM
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 Derek Mangum
Investment Insights
Based on property information with market context.
The property comprises a 10,461-square-foot office building constructed in 1936, arranged across three stories and four levels. A functioning elevator serves the building, while the mezzanine includes a large break room or shared amenity area. The existing structure supports office use, with the source information also identifying residential conversion and new mid-rise construction as possible directions for the property.
Located on Rigsbee Avenue in Downtown Durham’s retail and business core, the property is near restaurants, bars, boutique hotels, arts and entertainment venues, the Durham Convention Center, Carolina Theatre, Durham Bulls Stadium, American Tobacco, and the Performing Arts Center. The building is adjacent to the Morgan Rigsbee Parking Garage.
The site encompasses .07 acres and offers an urban building format with multiple levels and established downtown surroundings.
Located on Rigsbee Avenue in Downtown Durham’s retail and business core, the property is near restaurants, bars, boutique hotels, arts and entertainment venues, the Durham Convention Center, Carolina Theatre, Durham Bulls Stadium, American Tobacco, and the Performing Arts Center. The building is adjacent to the Morgan Rigsbee Parking Garage.
The site encompasses .07 acres and offers an urban building format with multiple levels and established downtown surroundings.
Key Highlights
- 10,461 SF office building on a .07‑acre site
- Constructed in 1936 with three stories and four levels
- Functioning elevator serving the building
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
$161,560
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
8.98%
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%
$3,231,200
$3.2M
Cap Rate 7%
$2,308,000
$2.3M
Cap Rate 9%
$1,795,111
$1.8M
Market Conditions
NOI Build-Up for 10,461 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
$261.1K $24.96/SF
− Vacancy
−$45.7K −$4.37/SF
EGI
$215.4K $20.59/SF
− OpEx
−$53.9K −$5.15/SF
NOI
$161.6K $15.44/SF
Area
Durham, NC
Vacancy
17.50%
Lease Rate
$24.96 /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%
$3,231,200
Cap Rate 7%
$2,308,000
Cap Rate 9%
$1,795,111
Alternative Uses
Best Use
Office B
$2.31M
$2.02M – $2.69M
NOI $161,560 @ 7.0% cap · market cap 8.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.38M
$2.96M – $3.94M
NOI $236,458 @ 7.0% cap · market cap 13.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3,076
Businesses Nearby
Explore this area
Business Placement
Demographics for 27701, NC
25,208
Population
13,409
Households
1.9
Avg Household Size
34
Median Age
50%
College-Educated
85%
High-School Grad
5.2 sq mi
ZIP Area
4,848
Density / Sq Mi
$66,852
Median Household Income
$47,681
Median Earnings
$1,279
Median Rent
$457,600
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?
Office building - Three-story office property with mezzanine amenities and access to Downtown Durham’s retail, dining, arts, and entertainment district.
Where is this office building located?
The property is located at 216-218 Rigsbee Avenue Durham, NC.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: 10,461 SF office building on a .07‑acre site; Constructed in 1936 with three stories and four levels; Functioning elevator serving the building
