Commercial Property with High
For Sale
$1,000,000
2994 NEW CASTLE Ave, New Castle, DE 19720
1.5+/- acre commercial property with high traffic and visibility.
Property Size2,700 SF
Lot Size1.51 Acres
Price / SF$370.37
Days on Market152
Property Features for 2994 NEW CASTLE Ave
General Information
Standard status
Active
Size
2,700 SF
Lot size
1.51 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$2,986
Building Details
Year Built
1984
Listing Agency:
BHHS Fox & Roach - Hockessin
(484) 319-7771
Listed By:
Georgette Y Balback · License #RS326378
(484) 319-7771
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 2:59PM
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 BHHS Fox & Roach - Hockessin
Investment Insights
Based on property information with market context.
This commercial property offers approximately 1.5 acres of land, suitable for land lease. The location provides significant exposure, making it suitable for retail or office businesses. Situated near the interchange of Route I-295 and Route 40, as well as Delaware Route 9 and the Delaware Memorial Bridge, the site benefits from high traffic volume. The property includes an existing building with over 2700 square feet. The site presents possibilities for immediate use or redevelopment. The area is experiencing growth with new businesses establishing themselves nearby.
Key Highlights
- Prime location with maximum exposure for retail or office business.
- Seconds away from major highways (Rt. I 295 & Rt 40 interchange, De. 9) and the Delaware Memorial Bridge.
- High traffic count, ideal for a growing business.
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
$36,776
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
3.68%
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%
$735,520
$735.5K
Cap Rate 7%
$525,371
$525.4K
Cap Rate 9%
$408,622
$408.6K
Market Conditions
NOI Build-Up for 2,700 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
$60.9K $22.56/SF
− Vacancy
−$11.9K −$4.40/SF
EGI
$49.0K $18.16/SF
− OpEx
−$12.3K −$4.54/SF
NOI
$36.8K $13.62/SF
Area
New Castle County, DE
Vacancy
19.50%
Lease Rate
$22.56 /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%
$735,520
Cap Rate 7%
$525,371
Cap Rate 9%
$408,622
Alternative Uses
Best Use
Office B
$525.4K
$459.7K – $612.9K
NOI $36,776 @ 7.0% cap · market cap 3.68%
Second Best
Retail
$373.4K
$326.7K – $435.7K
NOI $26,139 @ 7.0% cap · market cap 2.61%
Theoretical Best
Office A
$645.8K
$565.1K – $753.5K
NOI $45,207 @ 7.0% cap · market cap 4.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
293
Businesses Nearby
Explore this area
Business Placement
Demographics for 19720, DE
61,043
Population
24,262
Households
2.5
Avg Household Size
39
Median Age
22%
College-Educated
89%
High-School Grad
38.3 sq mi
ZIP Area
1,594
Density / Sq Mi
$75,985
Median Household Income
$42,600
Median Earnings
$1,282
Median Rent
$242,600
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 - 1.5+/- acre commercial property with high traffic and visibility.
Where is this commercial land located?
The property is located at 2994 NEW CASTLE Ave New Castle, DE.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Prime location with maximum exposure for retail or office business.; Seconds away from major highways (Rt. I 295 & Rt 40 interchange, De. 9) and the Delaware Memorial Bridge.; High traffic count, ideal for a growing business.
