Building Details

Buildings 1

Listing Agency: Ren Management Group LLC t***@renmgtgroup.com Show Phone

Listed By: Tin Tin Ren · License #10491210256 Show Phone

Source: Nicholcityrealty

Added: Jul 20 Changed: Aug 30 Last Checked: Aug 30 at 5:38AM

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Investment Insights

Based on property information with market context.

This mixed-use building contains 8,448 square feet and offers two suites: a 1,856-square-foot ground-floor retail area and a second-floor office suite under 700 square feet. The upper level is part of an addition completed in July 2024, while updated mechanical systems serve the building. A roof replacement was completed in 2023.

Situated at 2322 Lyell Avenue in Gates, the property fronts an active commercial corridor with more than 28,000 vehicles passing daily. Wegmans is directly across Lyell Avenue, and the surrounding commercial area includes national retailers and major regional employers. The available configuration supports both retail and office occupancy within the same building.

Key Highlights

• 1,856‑square‑foot ground‑floor retail suite
• Second‑floor office suite under 700 sq ft
• 8,448‑square‑foot mixed‑use building

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

$121,499

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

9.00%

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%

$2,429,980 $2.4M

Cap Rate 7%

$1,735,700 $1.7M

Cap Rate 9%

$1,349,989 $1.3M

Market Conditions

NOI Build-Up for 8,448 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

$202.8K $24.00/SF

− Vacancy

−$40.8K −$4.82/SF

EGI

$162.0K $19.18/SF

− OpEx

−$40.5K −$4.79/SF

NOI

$121.5K $14.38/SF

Area

Rochester, NY

Vacancy

20.10%

Lease Rate

$24.00 /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%

$2,429,980

Cap Rate 7%

$1,735,700

Cap Rate 9%

$1,349,989

Alternative Uses

Best Use

Office B

$1.74M

$1.52M – $2.02M (±1% cap)

NOI $121,499 @ 7.0% cap · market cap 9.00%

Second Best

Retail

$1.64M

$1.43M – $1.91M (±1% cap)

NOI $114,577 @ 7.0% cap · market cap 8.49%

Theoretical Best

Office A

$2.31M

$2.02M – $2.70M (±1% cap)

NOI $161,999 @ 7.0% cap · market cap 12.00%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Chanda-Kabita's Beauty & Brows ... Hair Salon

Suggested Use

Top Pick Real Estate Agency Law Firm Restaurant Parking Lot & Garage Garden Center Gym & Fitness Center

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

460

Businesses Nearby

Explore this area Business Placement

Demographics for 14606, NY

28,252

Population

11,712

Households

2.4

Avg Household Size

39

Median Age

23%

College-Educated

83%

High-School Grad

9.4 sq mi

ZIP Area

3,006

Density / Sq Mi

$57,287

Median Household Income

$38,682

Median Earnings

$978

Median Rent

$150,500

Median Home Value

Market

Vacancy Rate% for Office in Northeast region

13.1% 2019

15.4% 2020

17.6% 2021

19.1% 2022

20.2% 2023

20.9% 2024

19.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Two suites combine street-level retail with second-floor office space.

Where is this mixed-use property located?

The property is located at 2322 Lyell Avenue Gates, NY.

What is the asking price?

The asking price for this property is $1,349,999.

What are key features of this property?

This property features: 1,856‑square‑foot ground‑floor retail suite; Second‑floor office suite under 700 sq ft; 8,448‑square‑foot mixed‑use building