Building Details

Year Built 1990

Tenancy Single

Listing Agency: Landmark Commercial Realty

Listed By: W. Jason Grace · License #PA Show Phone

Source: Crexi

Added: Oct 18, 2023 Changed: Aug 16 Last Checked: Sep 13 at 4:29AM

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Investment Insights

Based on property information with market context.

This single-tenant industrial flex property is located at 401 Paintersville Rd in New Stanton, Pennsylvania, within the Pittsburgh Market. Originally built-to-suit for FedEx Corporation in 1990, the property currently operates as a FedEx Ship Center, offering retail-focused shipping drop-off and pick-up services for FedEx Express and FedEx Ground. The 25,574 square foot building includes 3,800 square feet of office/retail space, 20,000 square feet of warehouse space, and a 1,740 square foot vehicle maintenance area. The entire building is climate controlled and fully sprinklered, featuring five drive-in doors and three dock doors, with a 20-foot clear ceiling height. The property is located near the intersection of I-76 (The Pennsylvania Turnpike), I-70, US-60, and US-119, an area with new industrial developments including regional hubs for FedEx Ground, FedEx Freight, and UPS. The Westmoreland County submarket has a flex space vacancy rate of 1.2%. Average flex rents in Westmoreland County are currently $9.42 per square foot. The area around the property has attracted industrial corporate tenants such as Amazon, UPS, FedEx Ground, FedEx Freight, UNFI, Siemens Corporation, SLB Freight, Intervala, and Westinghouse.

Key Highlights

• Single‑tenant net‑leased property occupied by FedEx Corporation since 1990, providing stable income.
• Strategic location near the intersection of I‑76, I‑70, US‑60, and US‑119, a focal point for industrial development and logistics hubs.
• Value‑add opportunity to increase rents to market rates in the desirable Pittsburgh market.

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

$178,891

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

9.17%

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%

$3,577,820 $3.6M

Cap Rate 7%

$2,555,586 $2.6M

Cap Rate 9%

$1,987,678 $2.0M

Market Conditions

NOI Build-Up for 25,574 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

$291.5K $11.40/SF

− Vacancy

−$16.3K −$0.64/SF

EGI

$275.2K $10.76/SF

− OpEx

−$96.3K −$3.77/SF

NOI

$178.9K $7.00/SF

Area

Westmoreland County, PA

Vacancy

5.60%

Lease Rate

$11.40 /SF/Yr

Expense Ratio

35.00%

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%

$3,577,820

Cap Rate 7%

$2,555,586

Cap Rate 9%

$1,987,678

Alternative Uses

Best Use

Flex RnD

$2.56M

$2.24M – $2.98M (±1% cap)

NOI $178,891 @ 7.0% cap · market cap 9.17%

Second Best

Industrial

$2.13M

$1.87M – $2.49M (±1% cap)

NOI $149,221 @ 7.0% cap · market cap 7.65%

Theoretical Best

Office A

$6.51M

$5.70M – $7.60M (±1% cap)

NOI $455,986 @ 7.0% cap · market cap 23.38%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

FedEx Ship Center Courier Service

Suggested Use

Top Pick Real Estate Agency Building Supply Dental Office Auto Parts Store Pharmacy Parking Lot & Garage

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

144

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 15639, PA

2,062

Population

1,008

Households

2

Avg Household Size

48

Median Age

36%

College-Educated

98%

High-School Grad

10.9 sq mi

ZIP Area

189

Density / Sq Mi

$77,354

Median Household Income

$62,258

Median Earnings

$1,482

Median Rent

$203,400

Median Home Value

Market

Vacancy Rate% for Industrial in Northeast region

5.4% 2019

4.6% 2020

3.2% 2021

3.3% 2022

5.3% 2023

6.6% 2024

7.6% 2025

Questions? Ask Rey

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What type of property is this? Where is this flex space located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Flex space - Single tenant industrial flex property in the Pittsburgh Market.

Where is this flex space located?

The property is located at 401 Paintersville Rd Hunker, PA.

What is the asking price?

The asking price for this property is $1,950,000.

What are key features of this property?

This property features: Single‑tenant net‑leased property occupied by FedEx Corporation since 1990, providing stable income.; Strategic location near the intersection of I‑76, I‑70, US‑60, and US‑119, a focal point for industrial development and logistics hubs.; Value‑add opportunity to increase rents to market rates in the desirable Pittsburgh market.