Income-Producing Land with Development
For Sale
Contact for pricing
26539 Lewes Georgetown Hwy, Harbeson, DE 19951
7.18±-acre CR-1 zoned property with income and development potential.
Property Size4,500 SF
Lot Size7.18 Acres
Price / SF$488.89
Days on Market189
Property Features for 26539 Lewes Georgetown Hwy
General Information
Standard status
Active
Size
4,500 SF
Lot size
7.18 Acres
Property subtype
Industrial, Land, Mixed Use, Office, Retail
Zoning
CR-1
Lease Type
Gross
Investment Type
Redevelopment
Building Details
Tenancy
Multi
Listing Agency:
SVN | Miller Commercial Real Estate Salisbury
(410) 543-2440
Listed By:
Andrew Ball · License #MD 36569
Source:
Crexi
Added: Feb 4
Changed: Aug 8
Last Checked: Aug 11 at 4:33PM
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 SVN | Miller Commercial Real Estate Salisbury
Investment Insights
Based on property information with market context.
This 7.18±-acre property, zoned CR-1, is located in a desirable growth corridor. The property offers immediate and long-term development potential. The flexible CR-1 zoning supports a mix of commercial and residential uses, making it suitable for developers, investors, or owner-users. The property is currently occupied by 8 month-to-month tenants, generating $10,850 in monthly income, or $130,200 annually. This allows for maintaining cash flow while entitlements, design, or phased redevelopment are pursued. Water and sewer are available at the street. An adjoining ±1+ acre CR-1 parcel is also available, improved with a fully renovated home and office, to be connected to public water and sewer. Acquiring both parcels creates enhanced frontage, increased density potential, and greater development flexibility. The property size is 4500 square feet.
Key Highlights
- 7.18±-acre property in a highly desirable growth corridor.
- CR‑1 zoning supports a broad mix of commercial and residential uses.
- Generating $10,850 monthly income ($130,200 annually) from 8 tenants.
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
$70,636
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
3.21%
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%
$1,412,720
$1.4M
Cap Rate 7%
$1,009,086
$1.0M
Cap Rate 9%
$784,844
$784.8K
Market Conditions
NOI Build-Up for 4,500 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
$115.6K $25.68/SF
− Vacancy
−$21.4K −$4.75/SF
EGI
$94.2K $20.93/SF
− OpEx
−$23.5K −$5.23/SF
NOI
$70.6K $15.70/SF
Area
Sussex County, DE
Vacancy
18.50%
Lease Rate
$25.68 /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%
$1,412,720
Cap Rate 7%
$1,009,086
Cap Rate 9%
$784,844
Alternative Uses
Best Use
Office B
$1.01M
$883.0K – $1.18M
NOI $70,636 @ 7.0% cap · market cap 3.21%
Second Best
Mixed Use
$763.7K
$668.3K – $891.0K
NOI $53,460 @ 7.0% cap · market cap 2.43%
Theoretical Best
Office A
$1.24M
$1.08M – $1.44M
NOI $86,562 @ 7.0% cap · market cap 3.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
76
Businesses Nearby
Explore this area
Business Placement
Demographics for 19951, DE
1,986
Population
886
Households
2.2
Avg Household Size
54
Median Age
29%
College-Educated
93%
High-School Grad
8.9 sq mi
ZIP Area
223
Density / Sq Mi
$79,698
Median Household Income
$42,500
Median Earnings
$427,900
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - 7.18±-acre CR-1 zoned property with income and development potential.
Where is this commercial land located?
The property is located at 26539 Lewes Georgetown Hwy Harbeson, DE.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: 7.18±-acre property in a highly desirable growth corridor.; CR‑1 zoning supports a broad mix of commercial and residential uses.; Generating $10,850 monthly income ($130,200 annually) from 8 tenants.
