Renovated Multi-Floor Office
For Sale
$2,400,000
2218 2218-20 Race St, Philadelphia, PA 19103
Fully renovated office property with conference rooms, executive offices, open workspace, and kitchen facilities.
Property Size9,000 SF
Price / SF$266.67
Days on Market21
Property Features for 2218 2218-20 Race St
General Information
Standard status
Active
Size
9,000 SF
Zoning
RM1
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
conference rooms
executive offices
open workspace
kitchen area
Building Details
Year Built
1860
Year Renovated
2018
Buildings
1
Stories
3
Building Size
9,000 SF
Listing Agency:
KW Empower
(484) 221-1556
Listed By:
Jeniffer Benner · License #RS337797
Source:
Riverfoxrealty
Added: Aug 10
Changed: Aug 29
Last Checked: Aug 25 at 5:22AM
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 KW Empower
Investment Insights
Based on property information with market context.
Constructed in 1860 and renovated in 2018, this 9,000-square-foot office building spans three floors and combines contemporary improvements with exposed wood beams. The interior includes two conference rooms, multiple executive offices, an open work area, and a fully equipped kitchen. The configuration supports office users including non-profits, medical practices, technology startups, and accounting firms.
The property is situated in Logan Square/Parkway with access to Center City amenities, I-76, and the Vine Street Expressway. The Schuylkill River Trail is within a short walk. RM1 zoning and an existing curb cut are also in place, with residential conversion identified as an additional possibility.
The property is situated in Logan Square/Parkway with access to Center City amenities, I-76, and the Vine Street Expressway. The Schuylkill River Trail is within a short walk. RM1 zoning and an existing curb cut are also in place, with residential conversion identified as an additional possibility.
Key Highlights
- 9,000 SQFT office building across three floors
- Fully renovated in 2018
- Two conference rooms, executive offices, open workspace, and kitchen area
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
$118,436
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
4.93%
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%
$2,368,720
$2.4M
Cap Rate 7%
$1,691,943
$1.7M
Cap Rate 9%
$1,315,956
$1.3M
Market Conditions
NOI Build-Up for 9,000 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
$197.6K $21.96/SF
− Vacancy
−$39.7K −$4.41/SF
EGI
$157.9K $17.55/SF
− OpEx
−$39.5K −$4.39/SF
NOI
$118.4K $13.16/SF
Area
Philadelphia, PA
Vacancy
20.10%
Lease Rate
$21.96 /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%
$2,368,720
Cap Rate 7%
$1,691,943
Cap Rate 9%
$1,315,956
Alternative Uses
Best Use
Office B
$1.69M
$1.48M – $1.97M
NOI $118,436 @ 7.0% cap · market cap 4.93%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$2.19M
$1.92M – $2.56M
NOI $153,584 @ 7.0% cap · market cap 6.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
13,449
Businesses Nearby
Explore this area
Business Placement
Demographics for 19103, PA
28,717
Population
20,064
Households
1.4
Avg Household Size
36
Median Age
81%
College-Educated
98%
High-School Grad
0.6 sq mi
ZIP Area
47,862
Density / Sq Mi
$97,940
Median Household Income
$76,680
Median Earnings
$1,955
Median Rent
$551,700
Median Home Value
Market
Vacancy Rate% for Office in Philadelphia, PA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Fully renovated office property with conference rooms, executive offices, open workspace, and kitchen facilities.
Where is this office building located?
The property is located at 2218 2218-20 Race St Philadelphia, PA.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: 9,000 SQFT office building across three floors; Fully renovated in 2018; Two conference rooms, executive offices, open workspace, and kitchen area
