Multi-Tenant Flex
For Sale
$1,615,000
2300 N 5th Street Hwy, Reading, PA 19605
Established commercial corridor setting with direct access to U.S. Route 222.
Property Size16,687 SF
Price / SF$96.78
Days on Market110
Property Features for 2300 N 5th Street Hwy
General Information
Standard status
Active
Size
16,687 SF
Property subtype
Warehouse
Additional Details
Cap Rate
8.84%
Highway Access
Yes
Amenities
Multi-Tenant Commercial/Flex Property Located in Reading, Pennsylvania
Anchored by Johnstone Supply with Approximately $4.5 Billion in Annual Sales
Diversified Tenant Mix Supporting Stable Income
Located Along One of Berks County's Most Active Commercial Corridors
Direct Access to U.S. Route 222 Providing Excellent Connectivity
Strong Visibility and Traffic Exposure
Flexible Layout Supporting Service, Trade, and Light-Industrial Uses
Stable Cash Flow Backed by National and Local Tenancy
Building Details
Building Size
16,687 SF
Year Built
1965
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Philadelphia
(215) 531-7093
Listed By:
Brian Higgins · License #License(s): PA: RS335804
(215) 531-7093
Source:
Marcusmillichap
Added: May 14
Changed: Aug 30
Last Checked: Aug 31 at 1:04PM
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 Marcus & Millichap - Philadelphia
Investment Insights
Based on property information with market context.
This 16,687-square-foot flex property was built in 1965 and is configured for multiple commercial occupants. The asset includes a tenant mix serving service, trade, and light-industrial users, with Johnstone Supply occupying an anchor position.
Located at 2300 N 5th Street Highway in Reading, the property sits directly off U.S. Route 222 and provides access throughout the greater Reading region. Its position along an established commercial corridor supports customer and business connectivity for the existing occupants.
Located at 2300 N 5th Street Highway in Reading, the property sits directly off U.S. Route 222 and provides access throughout the greater Reading region. Its position along an established commercial corridor supports customer and business connectivity for the existing occupants.
Key Highlights
- 16,687‑square‑foot flex property built in 1965
- Multi‑tenant configuration serving service, trade, and light‑industrial users
- Johnstone Supply occupies an anchor position
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
$118,231
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
7.32%
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%
$2,364,620
$2.4M
Cap Rate 7%
$1,689,014
$1.7M
Cap Rate 9%
$1,313,678
$1.3M
Market Conditions
NOI Build-Up for 16,687 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
$147.3K $8.83/SF
− Vacancy
−$8.3K −$0.49/SF
EGI
$139.1K $8.34/SF
− OpEx
−$20.9K −$1.25/SF
NOI
$118.2K $7.09/SF
Area
Berks County, PA
Vacancy
5.60%
Lease Rate
$8.83 /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%
$2,364,620
Cap Rate 7%
$1,689,014
Cap Rate 9%
$1,313,678
Alternative Uses
Best Use
Warehouse
$1.69M
$1.48M – $1.97M
NOI $118,231 @ 7.0% cap · market cap 7.32%
Second Best
Flex RnD
$1.67M
$1.46M – $1.95M
NOI $116,726 @ 7.0% cap · market cap 7.23%
Theoretical Best
Office A
$2.74M
$2.40M – $3.20M
NOI $191,754 @ 7.0% cap · market cap 11.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
501
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 19605, PA
21,356
Population
8,100
Households
2.6
Avg Household Size
43
Median Age
27%
College-Educated
90%
High-School Grad
17.6 sq mi
ZIP Area
1,213
Density / Sq Mi
$85,775
Median Household Income
$45,578
Median Earnings
$1,310
Median Rent
$218,500
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Established commercial corridor setting with direct access to U.S. Route 222.
Where is this flex space located?
The property is located at 2300 N 5th Street Hwy Reading, PA.
What is the asking price?
The asking price for this property is $1,615,000.
What are key features of this property?
This property features: 16,687‑square‑foot flex property built in 1965; Multi‑tenant configuration serving service, trade, and light‑industrial users; Johnstone Supply occupies an anchor position
