Industrial Flex Building with
New
For Sale
$2,950,000
3208 Pennington Dr, Wilmington, NC 28405
Two-story facility combines professional offices, production space, and warehouse functions under one roof.
Property Size11,000 SF
Price / SF$268.18
Days on Market2
Property Features for 3208 Pennington Dr
General Information
Standard status
Active
Size
11,000 SF
Property subtype
Industrial
Zoning
I-2
Additional Details
Asking Price
$2,950,000
Amenities
Reception and waiting area
Three conference rooms
Large employee break room
Building Details
Building Size
11,000 SF
Buildings
1
Stories
2
Listing Agency:
Lee & Associates - Raleigh Durham
(919) 909-9779
Listed By:
Russell Stewart
(919) 909-9779
Source:
Lee-associates
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 9 at 5:37AM
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 Lee & Associates - Raleigh Durham
Investment Insights
Based on property information with market context.
This approximately 11,000-square-foot flex building brings together executive office, flex, and production areas in a single facility. The interior includes a reception and waiting area, three conference rooms, private offices on both floors, and a large employee break room. A dedicated warehouse section provides three roll-up doors and space suited to production or storage. The property carries I-2 Industrial Zoning.
Located on Pennington Dr in Wilmington, the building is approximately 5 minutes from Wilmington International Airport (ILM). Its combination of office, warehouse, and flexible work areas supports operations requiring multiple functions within one building.
Located on Pennington Dr in Wilmington, the building is approximately 5 minutes from Wilmington International Airport (ILM). Its combination of office, warehouse, and flexible work areas supports operations requiring multiple functions within one building.
Key Highlights
- Approximately 11,000 SF flex building with office, production, and warehouse areas
- I‑2 Industrial Zoning
- Dedicated warehouse with 3 roll‑up doors
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
$139,703
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
4.74%
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%
$2,794,060
$2.8M
Cap Rate 7%
$1,995,757
$2.0M
Cap Rate 9%
$1,552,256
$1.6M
Market Conditions
NOI Build-Up for 11,000 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
$229.7K $20.88/SF
− Vacancy
−$43.4K −$3.95/SF
EGI
$186.3K $16.93/SF
− OpEx
−$46.6K −$4.23/SF
NOI
$139.7K $12.70/SF
Area
Wilmington, NC
Vacancy
18.90%
Lease Rate
$20.88 /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%
$2,794,060
Cap Rate 7%
$1,995,757
Cap Rate 9%
$1,552,256
Alternative Uses
Best Use
Office B
$2.00M
$1.75M – $2.33M
NOI $139,703 @ 7.0% cap · market cap 4.74%
Second Best
Warehouse
$1.95M
$1.70M – $2.27M
NOI $136,233 @ 7.0% cap · market cap 4.62%
Theoretical Best
Multifamily LT 5
$134.69M
$117.85M – $157.14M
NOI $9,428,199 @ 7.0% cap · market cap 319.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
296
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 28405, NC
31,775
Population
17,073
Households
1.9
Avg Household Size
41
Median Age
41%
College-Educated
91%
High-School Grad
23.5 sq mi
ZIP Area
1,352
Density / Sq Mi
$67,809
Median Household Income
$41,265
Median Earnings
$1,405
Median Rent
$337,000
Median Home Value
Market
Vacancy Rate% for Office in South 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?
Flex space - Two-story facility combines professional offices, production space, and warehouse functions under one roof.
Where is this flex space located?
The property is located at 3208 Pennington Dr Wilmington, NC.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: Approximately 11,000 SF flex building with office, production, and warehouse areas; I‑2 Industrial Zoning; Dedicated warehouse with 3 roll‑up doors
