Office Building with
For Sale
$459,000
332 Water Street, Hallowell, ME 04347
Commercial Sale, Hallowell, ME
Property Size2,120 SF
Lot Size0.30 Acres
Price / SF$216.51
Days on Market9
Property Features for 332 Water Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Business D
Rooms
Basement
Basement
Walk-Out Access, Unfinished, Partial
Accessibility
Accessible Approach with Ramp
Lot features
Downtown, Near Shopping
Standard status
Active
Size
2,120 SF
Lot size
0.30 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
5570
Utilities
Sewer type
Public Sewer
Heating system
Forced Air, Propane (Heating)
Water source
Public
Amenities
covered front porch
vaulted ceiling
radiant floor heat
expansive views
landscaped gardens
solar panels
Building Details
Year built
1900
Flooring type
Wood
Building materials
Wood Frame, Shingle Siding, Wood Siding
Roof type
Shingle
Listing Agency:
Hoang Realty
(207) 623-0623
Listed By:
Heidi Witham Hoa Hoang
(207) 707-2919
Added: Aug 14
Changed: Aug 19
Last Checked: Aug 22 at 12:06PM
MLS# 1676345
Copyright © 2026 Maine Listings. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,120-square-foot office building occupies approximately 0.30 acres in Hallowell. The wood-frame structure, built in 1900, includes multiple rooms suitable for offices along with a distinct studio featuring its own entrance, vaulted ceiling, bamboo flooring, radiant floor heat, and views across the landscaped grounds. Wood floors, a covered front porch, shingle and wood siding, and a shingle roof add to the building’s character. Solar panels serve the property, which also has public water and public sewer.
The property is located at 332 Water Street near downtown Hallowell, with access to local restaurants, shops, cultural attractions, the Kennebec River Rail Trail, I-95, and I-295. An accessible approach with ramp supports entry, while a basement provides additional space. The parcel includes established landscaping and a mature peach tree.
The property is located at 332 Water Street near downtown Hallowell, with access to local restaurants, shops, cultural attractions, the Kennebec River Rail Trail, I-95, and I-295. An accessible approach with ramp supports entry, while a basement provides additional space. The parcel includes established landscaping and a mature peach tree.
Key Highlights
- 2,120‑square‑foot office building on approximately 0.30 acres
- Separate studio with private entrance, vaulted ceiling, bamboo flooring, and radiant floor heat
- Built in 1900 with wood‑frame construction, wood floors, and shingle roof
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
$29,969
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
6.53%
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%
$599,380
$599.4K
Cap Rate 7%
$428,129
$428.1K
Cap Rate 9%
$332,989
$333.0K
Market Conditions
NOI Build-Up for 2,120 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
$45.8K $21.60/SF
− Vacancy
−$5.8K −$2.75/SF
EGI
$40.0K $18.85/SF
− OpEx
−$10.0K −$4.71/SF
NOI
$30.0K $14.14/SF
Area
Kennebec County, ME
Vacancy
12.74%
Lease Rate
$21.60 /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%
$599,380
Cap Rate 7%
$428,129
Cap Rate 9%
$332,989
Alternative Uses
Best Use
Office B
$428.1K
$374.6K – $499.5K
NOI $29,969 @ 7.0% cap · market cap 6.53%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$3.16M
$2.77M – $3.69M
NOI $221,398 @ 7.0% cap · market cap 48.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
91
Businesses Nearby
Explore this area
Business Placement
Demographics for 04347, ME
2,570
Population
1,436
Households
1.8
Avg Household Size
51
Median Age
46%
College-Educated
92%
High-School Grad
5.9 sq mi
ZIP Area
436
Density / Sq Mi
$58,811
Median Household Income
$37,027
Median Earnings
$830
Median Rent
$266,700
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Wood-frame office property with a separate studio, covered porch, solar panels, and landscaped grounds.
Where is this office building located?
The property is located at 332 Water Street Hallowell, ME.
What is the asking price?
The asking price for this property is $459,000.
What are key features of this property?
This property features: 2,120‑square‑foot office building on approximately 0.30 acres; Separate studio with private entrance, vaulted ceiling, bamboo flooring, and radiant floor heat; Built in 1900 with wood‑frame construction, wood floors, and shingle roof
