High-Traffic Restaurant with Office
For Sale
$699,900
Pending
3505 W 26th St, Erie, PA 16506
A Mexican bakery restaurant for sale in a high-visibility corridor with reported 20K/24hr traffic and mixed-use zoning.
Property Size3,471 SF
Lot Size0.77 Acres
Days on Market118
Property Features for 3505 W 26th St
General Information
Standard status
Pending
Size
3,471 SF
Lot size
0.77 Acres
Zoning
MU-2
Additional Details
Traffic Count
20,000 vehicles/day
Taxes and HOA fees
Annual Taxes
$11,143
Listing Agency:
Coldwell Banker Select - Airport
(814) 572-0705
Listed By:
Jenn Hills · License #RS288606
(814) 572-0705
Source:
Exprealty
Added: Apr 17
Changed: Aug 9
Last Checked: Aug 12 at 10:42AM
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 Coldwell Banker Select - Airport
Investment Insights
Based on property information with market context.
This property is currently operating as a Mexican bakery in a restaurant setting, and the sale includes the real estate with some equipment included. The site sits on approximately 0.77 acres and is arranged with a flexible layout that also features about 150 square feet of office space, providing room for a variety of operational setups. Mixed-use zoning (MU-2) allows for multiple future concept types, subject to applicable approvals.
Located at 3505 W 26th St in Erie, PA, the property is described as being in a high-visibility area with approximately 20,000 vehicles per 24 hours. The listing also notes that the business itself is not included in the sale, which may be important for buyers planning to operate under a new concept.
For prospective owners, this combination of restaurant buildout, small office area, and MU-2 zoning can support users seeking an adaptable food-and-beverage or service-oriented footprint. Since the business is excluded, buyers can evaluate equipment inclusions and the existing space plan as they consider their intended use, with the flexibility of the office component for front-facing administration or light customer support needs.
Located at 3505 W 26th St in Erie, PA, the property is described as being in a high-visibility area with approximately 20,000 vehicles per 24 hours. The listing also notes that the business itself is not included in the sale, which may be important for buyers planning to operate under a new concept.
For prospective owners, this combination of restaurant buildout, small office area, and MU-2 zoning can support users seeking an adaptable food-and-beverage or service-oriented footprint. Since the business is excluded, buyers can evaluate equipment inclusions and the existing space plan as they consider their intended use, with the flexibility of the office component for front-facing administration or light customer support needs.
Key Highlights
- Mexican bakery restaurant for sale in a high‑visibility corridor with approximately 20K/24‑hr traffic
- Business is not included in the sale
- Property sits on 0.77 acre with mixed‑use zoning (MU‑2)
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
$48,781
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
6.97%
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%
$975,620
$975.6K
Cap Rate 7%
$696,871
$696.9K
Cap Rate 9%
$542,011
$542.0K
Market Conditions
NOI Build-Up for 3,471 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
$67.9K $19.56/SF
− Vacancy
−$2.9K −$0.82/SF
EGI
$65.0K $18.74/SF
− OpEx
−$16.3K −$4.68/SF
NOI
$48.8K $14.05/SF
Area
Erie County, PA
Vacancy
4.20%
Lease Rate
$19.56 /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%
$975,620
Cap Rate 7%
$696,871
Cap Rate 9%
$542,011
Alternative Uses
Best Use
Specialty Retail
$696.9K
$609.8K – $813.0K
NOI $48,781 @ 7.0% cap · market cap 6.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$861.1K
$753.5K – $1.00M
NOI $60,279 @ 7.0% cap · market cap 8.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
564
Businesses Nearby
10k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 64%
Shops & Services 22%
Apparel 15%
Dunkin' Donuts
Dining
6,121 visits/mo
0.3 miles
Talbots
Apparel
1,418 visits/mo
0.3 miles
Monro Auto Service and Tire Centers
Shops & Services
1,133 visits/mo
0.5 miles
PostNet
Shops & Services
967 visits/mo
0.3 miles
Demographics for 16506, PA
23,918
Population
10,309
Households
2.3
Avg Household Size
44
Median Age
39%
College-Educated
96%
High-School Grad
13.6 sq mi
ZIP Area
1,759
Density / Sq Mi
$84,021
Median Household Income
$47,823
Median Earnings
$1,176
Median Rent
$224,200
Median Home Value
Market
Vacancy Rate% for Retail 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?
Conventional restaurant - A Mexican bakery restaurant for sale in a high-visibility corridor with reported 20K/24hr traffic and mixed-use zoning.
Where is this conventional restaurant located?
The property is located at 3505 W 26th St Erie, PA.
What is the asking price?
The asking price for this property is $699,900.
What are key features of this property?
This property features: Mexican bakery restaurant for sale in a high‑visibility corridor with approximately 20K/24‑hr traffic; Business is not included in the sale; Property sits on 0.77 acre with mixed‑use zoning (MU‑2)
