Professional Office
For Sale
$1,199,000
255 S STATE STREET, Newtown, PA 18940
VC-zoned property with private offices, conference space, and a kitchen in Newtown Boro.
Property Size3,989 SF
Price / SF$300.58
Days on Market15
Property Features for 255 S STATE STREET
General Information
Standard status
Active
Size
3,989 SF
Property subtype
Commercial
Building Details
Year Built
1875
Listing Agency:
Legacy Realty Properties, LLC
(215) 669-7720
Listed By:
Jane Colletti · License #AB068833
(215) 669-7720
Source:
Cummingsrealtors
Added: Aug 8
Changed: Aug 22
Last Checked: Aug 22 at 4:36AM
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 Legacy Realty Properties, LLC
Investment Insights
Based on property information with market context.
This Newtown Boro property is configured for professional office use, with 10 private offices, a shared conference area, and a kitchen. The office layout meets applicable fire code requirements identified in the property information, while the building dates to 1875.
Located at 255 S State Street, the property is within walking distance of the center of town and offers visibility from State Street. VC zoning supports its professional-office classification. The property is currently rented as a residential home, creating a distinction between its present occupancy and the office configuration described.
Located at 255 S State Street, the property is within walking distance of the center of town and offers visibility from State Street. VC zoning supports its professional-office classification. The property is currently rented as a residential home, creating a distinction between its present occupancy and the office configuration described.
Key Highlights
- 10 private offices with a shared conference area and kitchen
- VC zoning for professional office use
- Office configuration meets fire code requirements
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
$62,714
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
5.23%
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%
$1,254,280
$1.3M
Cap Rate 7%
$895,914
$895.9K
Cap Rate 9%
$696,822
$696.8K
Market Conditions
NOI Build-Up for 3,989 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
$103.9K $26.04/SF
− Vacancy
−$20.3K −$5.08/SF
EGI
$83.6K $20.96/SF
− OpEx
−$20.9K −$5.24/SF
NOI
$62.7K $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%
$1,254,280
Cap Rate 7%
$895,914
Cap Rate 9%
$696,822
Alternative Uses
Best Use
Office B
$895.9K
$783.9K – $1.05M
NOI $62,714 @ 7.0% cap · market cap 5.23%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.21M
$1.06M – $1.41M
NOI $84,660 @ 7.0% cap · market cap 7.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,314
Businesses Nearby
Explore this area
Business Placement
Demographics for 18940, PA
30,280
Population
11,763
Households
2.6
Avg Household Size
47
Median Age
67%
College-Educated
97%
High-School Grad
34.6 sq mi
ZIP Area
875
Density / Sq Mi
$157,591
Median Household Income
$85,895
Median Earnings
$2,227
Median Rent
$623,300
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 - VC-zoned property with private offices, conference space, and a kitchen in Newtown Boro.
Where is this office building located?
The property is located at 255 S STATE STREET Newtown, PA.
What is the asking price?
The asking price for this property is $1,199,000.
What are key features of this property?
This property features: 10 private offices with a shared conference area and kitchen; VC zoning for professional office use; Office configuration meets fire code requirements
