Newtown Three-Story Office Building
For Sale
$6,500,000
3 Friends Lane, Newtown, PA 18940
Single-tenant, net-leased office building in desirable Newtown Township.
Property Size19,464 SF
Price / SF$333.95
Days on Market281
Property Features for 3 Friends Lane
General Information
Standard status
Active
Size
19,464 SF
Class
A
Property subtype
Office
Building Details
Building Size
19,464 SF
Year Built
1988
Listing Agency:
SVN | Ahia Commercial Real Estate
(267) 981-9110
Listed By:
Chichi E. Ahia, SIOR · License #PA #RM423727
(267) 981-9110
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 15
Last Checked: Aug 29 at 7:43AM
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 | Ahia Commercial Real Estate
Investment Insights
Based on property information with market context.
This \u00b120,000 square foot, three-story office building is located in Newtown Township. The property is fully leased to a financial institution that has occupied the building since 2017. The property is positioned in a commercial submarket and offers an absolute NNN lease structure with no landlord responsibilities throughout the term. The building has curb appeal, blending design with functionality. It is located at the signalized intersection of Friends Lane and Newtown Yardley Road, at the gateway of Newtown Industrial Commons and in close proximity to retailers, hotels, restaurants, shopping, dining and other cultural attractions. The site is located 0.6 miles to PA-332, 1.8 miles to I-295/95 and 4.2 miles to Scudder Falls Bridge, offering convenient access to Philadelphia, Central and Southern New Jersey and New York. The property presents an opportunity for investors seeking stable returns and a passive ownership structure. The building size is 19464 square feet.
Key Highlights
- Absolute NNN Lease: a truly passive investment.
- High‑quality office building leased to a well‑established financial institution since 2017.
- Located in desirable Newtown Township commercial submarket.
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
$306,006
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
4.71%
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%
$6,120,120
$6.1M
Cap Rate 7%
$4,371,514
$4.4M
Cap Rate 9%
$3,400,067
$3.4M
Market Conditions
NOI Build-Up for 19,464 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
$506.8K $26.04/SF
− Vacancy
−$98.8K −$5.08/SF
EGI
$408.0K $20.96/SF
− OpEx
−$102.0K −$5.24/SF
NOI
$306.0K $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%
$6,120,120
Cap Rate 7%
$4,371,514
Cap Rate 9%
$3,400,067
Alternative Uses
Best Use
Office B
$4.37M
$3.83M – $5.10M
NOI $306,006 @ 7.0% cap · market cap 4.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.90M
$5.16M – $6.88M
NOI $413,090 @ 7.0% cap · market cap 6.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,517
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Single-tenant, net-leased office building in desirable Newtown Township.
Where is this office building located?
The property is located at 3 Friends Lane Newtown, PA.
What is the asking price?
The asking price for this property is $6,500,000.
What are key features of this property?
This property features: Absolute NNN Lease: a truly passive investment.; High‑quality office building leased to a well‑established financial institution since 2017.; Located in desirable Newtown Township commercial submarket.
