Listing Agency: Lamacchia Realty, Inc. Show Phone

Listed By: Sandra Berkenbush · License #452000151 Show Phone

Source: Exprealty

Added: Jul 28, 2025 Changed: Sep 9 Last Checked: Sep 9 at 7:05AM

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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 Lamacchia Realty, Inc.

Investment Insights

Based on property information with market context.

Located in West Newbury, the commercial property at 277 Main Street presents a versatile opportunity in a tightly held community. The building includes two separate office or retail spaces, each equipped with its own bathroom. The property is suitable for small businesses, professional services, or creative ventures. It features parking space for six cars, good visibility, and convenient access to local traffic. The property offers the opportunity to build equity in your business's future.

Key Highlights

• Rare commercial property opportunity in West Newbury.
• Two separate office/retail spaces, each with a private bathroom.
• Excellent visibility and easy access to local traffic.

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

$22,641

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

6.47%

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%

$452,820 $452.8K

Cap Rate 7%

$323,443 $323.4K

Cap Rate 9%

$251,567 $251.6K

Market Conditions

NOI Build-Up for 1,378 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

$33.1K $24.00/SF

− Vacancy

−$728 −$0.53/SF

EGI

$32.3K $23.47/SF

− OpEx

−$9.7K −$7.04/SF

NOI

$22.6K $16.43/SF

Area

Essex County, MA

Vacancy

2.20%

Lease Rate

$24.00 /SF/Yr

Expense Ratio

30.00%

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%

$452,820

Cap Rate 7%

$323,443

Cap Rate 9%

$251,567

Alternative Uses

Best Use

Office B

$548.7K

$480.1K – $640.2K (±1% cap)

NOI $38,409 @ 7.0% cap · market cap 10.97%

Second Best

Retail

$323.4K

$283.0K – $377.4K (±1% cap)

NOI $22,641 @ 7.0% cap · market cap 6.47%

Theoretical Best

Office A

$815.8K

$713.8K – $951.7K (±1% cap)

NOI $57,104 @ 7.0% cap · market cap 16.32%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

West Newbury Learning ... Training Center

Suggested Use

Top Pick Building Supply Real Estate Agency Restaurant Auto Parts Store Plumbing Service (Bike/Boat/Book/etc) Store

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

156

Businesses Nearby

Explore this area Business Placement

Demographics for 01985, MA

4,500

Population

1,799

Households

2.5

Avg Household Size

48

Median Age

67%

College-Educated

98%

High-School Grad

13.4 sq mi

ZIP Area

336

Density / Sq Mi

$189,048

Median Household Income

$78,669

Median Earnings

$1,809

Median Rent

$765,800

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 retail space 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?

Retail space - Commercial property in a desirable North Shore town.

Where is this retail space located?

The property is located at 277 Main St West Newbury, MA.

What is the asking price?

The asking price for this property is $350,000.

What are key features of this property?

This property features: Rare commercial property opportunity in West Newbury.; Two separate office/retail spaces, each with a private bathroom.; Excellent visibility and easy access to local traffic.