Industrial Warehouse with
For Sale
Contact for pricing
218 Pennsylvania Ave, Virginia Beach, VA 23462
Heavy-industrial zoning and grade-level loading define this warehouse near I-264 access.
Property Size3,840 SF
Lot Size0.21 Acres
Price / SF$200
Days on Market208
Property Features for 218 Pennsylvania Ave
General Information
Standard status
Active
Size
3,840 SF
Lot size
0.21 Acres
Property subtype
INDUSTRIAL
Zoning
I-2
Warehouse & Industrial
Clear Height
12 ft
Warehouse Space
3,840 SF
Drive-In Doors
1
Additional Details
Highway Access
Yes
Building Details
Year Built
1973
Buildings
1
Building Size
3,840 SF
Listing Agency:
Colliers | Norfolk
(757) 217-1892
Listed By:
Ricky Anderson · License #0225181900
Source:
Moodyscre
Added: Feb 3
Changed: Aug 29
Last Checked: Aug 29 at 1:40PM
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 Colliers | Norfolk
Investment Insights
Based on property information with market context.
This 3,840-square-foot warehouse occupies approximately 0.21 acres at 218 Pennsylvania Ave. in Virginia Beach. Constructed in 1973, the building carries I-2 Heavy Industrial zoning and provides a 12-foot ceiling. Loading is handled through one 9-foot by 10-foot grade-level door.
The property is approximately 0.5 miles from I-264, using the Witchduck Road exit. It sits within the Cleveland Street industrial market and is minutes from Virginia Beach Town Center, placing the facility within an established commercial setting with convenient regional highway connectivity.
The property is approximately 0.5 miles from I-264, using the Witchduck Road exit. It sits within the Cleveland Street industrial market and is minutes from Virginia Beach Town Center, placing the facility within an established commercial setting with convenient regional highway connectivity.
Key Highlights
- 3,840 SF warehouse building on approximately 0.21 acres
- I‑2 Heavy Industrial zoning
- One 9' x 10' grade‑level loading door
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
$30,552
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
3.98%
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%
$611,040
$611.0K
Cap Rate 7%
$436,457
$436.5K
Cap Rate 9%
$339,467
$339.5K
Market Conditions
NOI Build-Up for 3,840 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
$37.3K $9.72/SF
− Vacancy
−$1.4K −$0.36/SF
EGI
$35.9K $9.36/SF
− OpEx
−$5.4K −$1.40/SF
NOI
$30.6K $7.96/SF
Area
ZIP 23462
Vacancy
3.70%
Lease Rate
$9.72 /SF/Yr
Expense Ratio
15.00%
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%
$611,040
Cap Rate 7%
$436,457
Cap Rate 9%
$339,467
Alternative Uses
Best Use
Warehouse
$436.5K
$381.9K – $509.2K
NOI $30,552 @ 7.0% cap · market cap 3.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$815.5K
$713.6K – $951.5K
NOI $57,088 @ 7.0% cap · market cap 7.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12 ft
Clear height
1
Drive-in doors
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,228
Businesses Nearby
Balanced
Demand for This Use
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 Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Mini Price Storage — 102 S Witchduck Rd, Virginia Beach, VA 23462
- Parker Realty — 4936 Cleveland St #200, Virginia Beach, VA 23462
- Runnymede Corporation — 5198 Cleveland Pl # A, Virginia Beach, VA 23462
- CubeSmart Self Storage — 5198a Cleveland St, Virginia Beach, VA 23462
- The Moto Lodge — 248 Pennsylvania Ave, Virginia Beach, VA 23462
Frequently Asked Questions
What type of property is this?
Warehouse - Heavy-industrial zoning and grade-level loading define this warehouse near I-264 access.
Where is this warehouse located?
The property is located at 218 Pennsylvania Ave Virginia Beach, VA.
What is the asking price?
The asking price for this property is $768,000.
What are key features of this property?
This property features: 3,840 SF warehouse building on approximately 0.21 acres; I‑2 Heavy Industrial zoning; One 9' x 10' grade‑level loading door
