Quakertown Commercial 3-Unit
For Sale
$725,000
227 W Broad, Quakertown, PA 18951
Commercial building in Quakertown with established tenants and office space.
Property Size3,760 SF
Price / SF$192.82
Days on Market487
Property Features for 227 W Broad
General Information
Standard status
Active
Size
3,760 SF
Building Details
Year Built
1909
Listing Agency:
IRON VALLEY REAL ESTATE LEGACY
Listed By:
JESSICA VOOZ · License #AB068046
(610) 462-9737
Source:
Corcoran
Added: May 16, 2025
Changed: Mar 16
Last Checked: Apr 24 at 8:14AM
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 IRON VALLEY REAL ESTATE LEGACY
Investment Insights
Based on property information with market context.
Located in the heart of Quakertown, this commercial 3-unit building is available for sale by its long-standing owners. The main level features two established business tenants with long rental histories. The second floor, currently used as office space, offers 1700 square feet and includes three separate offices with a street view, a conference room, a cubicle area, and a kitchenette. Lower level occupants have their own separate restrooms. The third floor is currently used for storage. The property has separated utilities for each unit. The building has a total size of 3760 square feet.
Key Highlights
- Prime Commercial Location: Situated in the heart of Quakertown, offering high visibility and accessibility.
- Multi‑Unit Income Potential: Features three units, including two established businesses with long rental histories, providing immediate income.
- Versatile Office Space: The second floor offers 1700 sq ft of office space with separate offices, a conference room, a cubicle area, and a kitchenette.
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
$59,113
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
8.15%
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%
$1,182,260
$1.2M
Cap Rate 7%
$844,471
$844.5K
Cap Rate 9%
$656,811
$656.8K
Market Conditions
NOI Build-Up for 3,760 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
$97.9K $26.04/SF
− Vacancy
−$19.1K −$5.08/SF
EGI
$78.8K $20.96/SF
− OpEx
−$19.7K −$5.24/SF
NOI
$59.1K $15.72/SF
Area
Bucks County, PA
Vacancy
19.50%
Lease Rate
$26.04 /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%
$1,182,260
Cap Rate 7%
$844,471
Cap Rate 9%
$656,811
Alternative Uses
Best Use
Office B
$844.5K
$738.9K – $985.2K
NOI $59,113 @ 7.0% cap · market cap 8.15%
Second Best
Retail
$779.5K
$682.0K – $909.4K
NOI $54,562 @ 7.0% cap · market cap 7.53%
Theoretical Best
Office A
$1.14M
$997.5K – $1.33M
NOI $79,800 @ 7.0% cap · market cap 11.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
733
Businesses Nearby
Explore this area
Business Placement
Demographics for 18951, PA
36,111
Population
14,862
Households
2.4
Avg Household Size
43
Median Age
33%
College-Educated
94%
High-School Grad
71.7 sq mi
ZIP Area
504
Density / Sq Mi
$95,084
Median Household Income
$49,570
Median Earnings
$1,341
Median Rent
$339,000
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Northeast region
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Frequently Asked Questions
What type of property is this?
Office units - Commercial building in Quakertown with established tenants and office space.
Where is this office units located?
The property is located at 227 W Broad Quakertown, PA.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: Prime Commercial Location: Situated in the heart of Quakertown, offering high visibility and accessibility.; Multi‑Unit Income Potential: Features three units, including two established businesses with long rental histories, providing immediate income.; Versatile Office Space: The second floor offers 1700 sq ft of office space with separate offices, a conference room, a cubicle area, and a kitchenette.
