Remodeled Office Building on 1.43
For Sale
$949,000
225 Putnam Pike, Johnston, RI 02919
Spacious, remodeled office building with expansion potential on 1.43 acres.
Property Size4,617 SF
Lot Size1.43 Acres
Price / SF$205.54
Days on Market141
Property Features for 225 Putnam Pike
General Information
Standard status
Active
Size
4,617 SF
Lot size
1.43 Acres
Property subtype
Commercial
Building Details
Year Built
1962
Listing Agency:
REMAX REVOLUTION
(401) 921-5011
Listed By:
ANDERSON REAL ESTATE GROUP
Source:
Corcoran
Added: Mar 20
Changed: Jul 10
Last Checked: Aug 7 at 2:49AM
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 REMAX REVOLUTION
Investment Insights
Based on property information with market context.
This commercial property is located on the Smithfield/Johnston line. Situated on 1.43 acres, the remodeled building offers functionality and flexibility. The main level includes 5 private offices, including an executive office with a private entrance and half-bathroom. A large conference room is available, along with a kitchenette/coffee area. The lower level, which has direct street access, includes two additional half-bathrooms and offers space for work areas, storage, or potential expansion. To the rear of the property is land with potential for additional parking or expanded lower-level access. The property size is 4617 square feet.
Key Highlights
- Fully remodeled commercial building on 1.43 acres in a desirable location.
- Spacious layout with 5 private offices, plus a large executive office with private entrance and half‑bathroom.
- Lower level with direct street access, two half‑bathrooms, and ample space for work areas, storage, or expansion.
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
$59,678
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
6.29%
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%
$1,193,560
$1.2M
Cap Rate 7%
$852,543
$852.5K
Cap Rate 9%
$663,089
$663.1K
Market Conditions
NOI Build-Up for 4,617 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
$92.5K $20.04/SF
− Vacancy
−$13.0K −$2.81/SF
EGI
$79.6K $17.23/SF
− OpEx
−$19.9K −$4.31/SF
NOI
$59.7K $12.93/SF
Area
Providence County, RI
Vacancy
14.00%
Lease Rate
$20.04 /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%
$1,193,560
Cap Rate 7%
$852,543
Cap Rate 9%
$663,089
Alternative Uses
Best Use
Office B
$852.5K
$746.0K – $994.6K
NOI $59,678 @ 7.0% cap · market cap 6.29%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$1.10M
$960.9K – $1.28M
NOI $76,875 @ 7.0% cap · market cap 8.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
236
Businesses Nearby
Explore this area
Business Placement
Demographics for 02919, RI
29,473
Population
11,993
Households
2.5
Avg Household Size
45
Median Age
29%
College-Educated
91%
High-School Grad
23.5 sq mi
ZIP Area
1,254
Density / Sq Mi
$87,811
Median Household Income
$56,068
Median Earnings
$1,259
Median Rent
$326,100
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Spacious, remodeled office building with expansion potential on 1.43 acres.
Where is this office building located?
The property is located at 225 Putnam Pike Johnston, RI.
What is the asking price?
The asking price for this property is $949,000.
What are key features of this property?
This property features: Fully remodeled commercial building on 1.43 acres in a desirable location.; Spacious layout with 5 private offices, plus a **large executive office with private entrance and half‑bathroom.**; Lower level with direct street access, two half‑bathrooms, and ample space for work areas, storage, or expansion.
