Triple-Net Retail
For Sale
$1,728,841
400 S 6th St, Reading, PA 19602
Absolute NNN retail asset with a recent lease extension, positioned for long-term ownership under a passive structure.
Property Size9,568 SF
Price / SF$180.69
Days on Market69
Property Features for 400 S 6th St
General Information
Standard status
Active
Size
9,568 SF
Property subtype
Discount
Lease Type
NNN
Amenities
RECENT LEASE EXTENSION | LONG-TERM COMMITMENT • Family Dollar recently extended its lease, demonstrating long-term commitment to the site • Close to 10 years of remaining lease term provide durable
BUILT-IN NOI GROWTH • Lease includes 10% rental increases every 5 years during the base term • Continued 10% increases throughout all remaining 5-year option periods
STRONG SITE PERFORMANCE | TOP 22% NATIONWIDE LOCATION • Property Ranks in the top 22% of locations nationally based on annual visits
Building Details
Building Size
9,568 SF
Listing Agency:
Marcus & Millichap | Philadelphia
(215) 531-7071
Listed By:
Nick Geaneotes · License #License(s): PA: RS350464
(215) 531-7071
Source:
Marcusmillichap
Added: Jun 17
Changed: Aug 23
Last Checked: Aug 23 at 10:58AM
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 Marcus & Millichap | Philadelphia
Investment Insights
Based on property information with market context.
This offering is an absolute triple-net (NNN) retail investment property presented as a depreciable asset. The property is identified as a storefront and specialty-type commercial real estate building, and it is being sold with a recent lease extension already in place.
The subject property is located at 400 South 6th Street in Reading, Pennsylvania. It is sized at 9,568 square feet, providing a dedicated retail building footprint for an NNN arrangement.
For buyers seeking an NNN structure, this configuration shifts many operating responsibilities to the tenant under an absolute NNN framework, which can simplify owner involvement compared with gross or modified gross leases. With the recent lease extension noted in the remarks, the property is also positioned for continuity of occupancy within the terms of the existing tenant relationship. The asset’s NNN classification and depreciable presentation are key considerations for investors evaluating purchase and holding strategy.
The subject property is located at 400 South 6th Street in Reading, Pennsylvania. It is sized at 9,568 square feet, providing a dedicated retail building footprint for an NNN arrangement.
For buyers seeking an NNN structure, this configuration shifts many operating responsibilities to the tenant under an absolute NNN framework, which can simplify owner involvement compared with gross or modified gross leases. With the recent lease extension noted in the remarks, the property is also positioned for continuity of occupancy within the terms of the existing tenant relationship. The asset’s NNN classification and depreciable presentation are key considerations for investors evaluating purchase and holding strategy.
Key Highlights
- Built in 2016
- Absolute NNN retail asset
- Recent lease extension reported
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
$97,014
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
5.61%
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%
$1,940,280
$1.9M
Cap Rate 7%
$1,385,914
$1.4M
Cap Rate 9%
$1,077,933
$1.1M
Market Conditions
NOI Build-Up for 9,568 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
$144.7K $15.12/SF
− Vacancy
−$6.1K −$0.64/SF
EGI
$138.6K $14.48/SF
− OpEx
−$41.6K −$4.35/SF
NOI
$97.0K $10.14/SF
Area
Berks County, PA
Vacancy
4.20%
Lease Rate
$15.12 /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%
$1,940,280
Cap Rate 7%
$1,385,914
Cap Rate 9%
$1,077,933
Alternative Uses
Best Use
Retail
$1.39M
$1.21M – $1.62M
NOI $97,014 @ 7.0% cap · market cap 5.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.57M
$1.37M – $1.83M
NOI $109,948 @ 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
2,843
Businesses Nearby
Explore this area
Business Placement
Demographics for 19602, PA
19,782
Population
7,907
Households
2.5
Avg Household Size
32
Median Age
11%
College-Educated
71%
High-School Grad
2.0 sq mi
ZIP Area
9,891
Density / Sq Mi
$38,179
Median Household Income
$30,848
Median Earnings
$978
Median Rent
$73,000
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Absolute NNN retail asset with a recent lease extension, positioned for long-term ownership under a passive structure.
Where is this nnn property located?
The property is located at 400 S 6th St Reading, PA.
What is the asking price?
The asking price for this property is $1,728,841.
What are key features of this property?
This property features: Built in 2016; Absolute NNN retail asset; Recent lease extension reported
