Flex Building with
New
For Sale
$1,300,000
224 Gorham Rd, Scarborough, ME 04074
Office, production, flex, and storage areas combine with dock-height and drive-in loading access.
Property Size4,960 SF
Price / SF$262.10
Days on Market3
Property Features for 224 Gorham Rd
General Information
Standard status
Active
Size
4,960 SF
Warehouse & Industrial
Dock-High Doors
1
Drive-In Doors
1
Additional Details
Highway Access
Yes
Building Details
Year Built
1970
Listing Agency:
Keller Williams Realty
Listed By:
Alexandru Pirleci
(207) 239-6606
Source:
603luxury
Added: Sep 24
Changed: Sep 26
Last Checked: Sep 24 at 2:09PM
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 Keller Williams Realty
Investment Insights
Based on property information with market context.
This 4,960-square-foot flex property, built in 1970, brings together office, production, flexible work, and storage areas. Loading is served by one dock-height door and one drive-in bay. Improvements include a replacement roof, updated HVAC, new overhead doors, refreshed office flooring, and a third restroom. The paved parking area has also been redone, with work to the dock and loading ramp.
At 224 Gorham Rd in Scarborough, the property has pylon signage, paved parking, and green space. I-295 and Maine Turnpike interchanges are nearby. Area businesses and amenities include Walmart, Sam's Club, Lowe's, Marden's, Shaw's Supermarket, and Nonesuch River Brewing.
At 224 Gorham Rd in Scarborough, the property has pylon signage, paved parking, and green space. I-295 and Maine Turnpike interchanges are nearby. Area businesses and amenities include Walmart, Sam's Club, Lowe's, Marden's, Shaw's Supermarket, and Nonesuch River Brewing.
Key Highlights
- 4,960 square feet; built in 1970
- One dock‑height door and one drive‑in bay
- Office, production, flex, and storage areas
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
$38,541
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
2.96%
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%
$770,820
$770.8K
Cap Rate 7%
$550,586
$550.6K
Cap Rate 9%
$428,233
$428.2K
Market Conditions
NOI Build-Up for 4,960 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
$47.0K $9.48/SF
− Vacancy
−$1.7K −$0.34/SF
EGI
$45.3K $9.14/SF
− OpEx
−$6.8K −$1.37/SF
NOI
$38.5K $7.77/SF
Area
Cumberland County, ME
Vacancy
3.57%
Lease Rate
$9.48 /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%
$770,820
Cap Rate 7%
$550,586
Cap Rate 9%
$428,233
Alternative Uses
Best Use
Warehouse
$550.6K
$481.8K – $642.4K
NOI $38,541 @ 7.0% cap · market cap 2.96%
Second Best
Industrial
$453.4K
$396.8K – $529.0K
NOI $31,740 @ 7.0% cap · market cap 2.44%
Theoretical Best
Office A
$1.36M
$1.19M – $1.59M
NOI $95,428 @ 7.0% cap · market cap 7.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
1
Dock-high doors
1
Drive-in doors
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
369
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 04074, ME
21,952
Population
10,561
Households
2.1
Avg Household Size
46
Median Age
58%
College-Educated
99%
High-School Grad
47.6 sq mi
ZIP Area
461
Density / Sq Mi
$125,642
Median Household Income
$55,955
Median Earnings
$1,821
Median Rent
$502,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Northeast region
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- Seas Catering, LLC — 500 Southborough Dr Suite LL3, South Portland, ME 04106
Frequently Asked Questions
What type of property is this?
Flex space - Office, production, flex, and storage areas combine with dock-height and drive-in loading access.
Where is this flex space located?
The property is located at 224 Gorham Rd Scarborough, ME.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: 4,960 square feet; built in 1970; One dock‑height door and one drive‑in bay; Office, production, flex, and storage areas
