Downtown Lancaster Assemblage For
For Sale
$2,295,000
37-45 North Duke Street, Lancaster, PA 17603
Three-parcel assemblage in downtown Lancaster with single tenant net lease.
Property Size30,008 SF
Price / SF$76.48
Days on Market260
Property Features for 37-45 North Duke Street
General Information
Standard status
Active
Size
30,008 SF
Class
B
Property subtype
Office
Building Details
Building Size
30,008 SF
Year Built
1880
Listing Agency:
(717) 278-9362
Listed By:
F. Jeffrey Kurtz, CCIM, SIOR
(717) 278-9362
Source:
Highassociates
Added: Nov 25, 2025
Changed: Aug 8
Last Checked: Aug 8 at 5:18AM
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 F. Jeffrey Kurtz, CCIM, SIOR
Investment Insights
Based on property information with market context.
This property comprises a three-parcel assemblage in downtown Lancaster, including 37 N Duke St, 45 N Duke St, and 37 N Cherry St, totaling 30,008 square feet. The property is currently under a NNN lease by a single tenant, Murray Insurance, with the lease expiring on September 30, 2027. There are 27 parking spaces located at the rear of the building. The buildings at 37 N Duke St, 45 N Duke St, and 37 N Cherry St were constructed in 1880, 1916, and 1941, respectively, with the finishes reflecting these periods. The property is located in the heart of Downtown Lancaster, across from the courthouse and a few blocks from Penn Square, surrounded by retail, restaurants, entertainment, and hotel amenities. The location is within walking distance of downtown's retail, restaurants, pubs, and entertainment venues. The property offers potential for redevelopment into multi-family or mixed-use spaces.
Key Highlights
- Single tenant net lease with 100% occupancy through 2027.
- Prime downtown Lancaster location across from the courthouse and near Penn Square.
- Three‑parcel assemblage totaling approximately 30,000 SF.
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
$167,126
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
7.28%
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%
$3,342,520
$3.3M
Cap Rate 7%
$2,387,514
$2.4M
Cap Rate 9%
$1,856,956
$1.9M
Market Conditions
NOI Build-Up for 30,008 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
$258.7K $8.62/SF
− Vacancy
−$19.9K −$0.66/SF
EGI
$238.8K $7.96/SF
− OpEx
−$71.6K −$2.39/SF
NOI
$167.1K $5.57/SF
Area
Lancaster County, PA
Vacancy
7.70%
Lease Rate
$8.62 /SF/Yr
Expense Ratio
30.00%
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%
$3,342,520
Cap Rate 7%
$2,387,514
Cap Rate 9%
$1,856,956
Alternative Uses
Best Use
Office B
$7.10M
$6.21M – $8.28M
NOI $496,809 @ 7.0% cap · market cap 21.65%
Second Best
Retail
$5.04M
$4.41M – $5.89M
NOI $353,146 @ 7.0% cap · market cap 15.39%
Theoretical Best
Office A
$10.06M
$8.80M – $11.73M
NOI $703,910 @ 7.0% cap · market cap 30.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,830
Businesses Nearby
Explore this area
Business Placement
Demographics for 17603, PA
66,739
Population
28,142
Households
2.4
Avg Household Size
37
Median Age
37%
College-Educated
90%
High-School Grad
30.0 sq mi
ZIP Area
2,225
Density / Sq Mi
$77,156
Median Household Income
$40,043
Median Earnings
$1,265
Median Rent
$244,500
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 - Three-parcel assemblage in downtown Lancaster with single tenant net lease.
Where is this office building located?
The property is located at 37-45 North Duke Street Lancaster, PA.
What is the asking price?
The asking price for this property is $2,295,000.
What are key features of this property?
This property features: Single tenant net lease with 100% occupancy through 2027.; Prime downtown Lancaster location across from the courthouse and near Penn Square.; Three‑parcel assemblage totaling approximately 30,000 SF.
