Brick Retail and Office
For Sale
$947,000
407 Essex Street, Lawrence, MA 01840
Street-level storefront with large windows plus a finished high-ceiling basement near a major community college campus.
Property Size3,654 SF
Price / SF$259.17
Days on Market97
Property Features for 407 Essex Street
General Information
Standard status
Active
Size
3,654 SF
Property subtype
Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Business Included
Yes
Building Details
Year Built
1971
Listing Agency:
Century 21 North East
Listed By:
Fermin Group
(617) 875-4950
Source:
Sarkisboston
Added: May 19
Changed: Aug 22
Last Checked: Aug 22 at 9:28AM
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 Century 21 North East
Investment Insights
Based on property information with market context.
This brick commercial building offers street-level retail presence with large windows for natural light and sidewalk visibility. The configuration includes 3,654 square feet of storefront space, along with an additional 3,654 square feet in a high-ceiling finished basement, providing flexible back-of-house and workspace options under the same roof.
The property is positioned virtually adjacent to the Northern Essex Community College Health and Technology Center. It is located just a few blocks from Route 28 and close to I-495 and I-93, with a high traffic count mentioned in the marketing remarks.
Designed for owner-users or entrepreneurs seeking an adaptable downtown footprint, the space can support a range of concepts such as retail, office, bookstore, or art supply use, based on the intended applications described for the property. Street-level entrances and basement space make it practical to combine customer-facing activity with additional usable interior area in one location at 407 Essex Street, Lawrence, MA 01840.
The property is positioned virtually adjacent to the Northern Essex Community College Health and Technology Center. It is located just a few blocks from Route 28 and close to I-495 and I-93, with a high traffic count mentioned in the marketing remarks.
Designed for owner-users or entrepreneurs seeking an adaptable downtown footprint, the space can support a range of concepts such as retail, office, bookstore, or art supply use, based on the intended applications described for the property. Street-level entrances and basement space make it practical to combine customer-facing activity with additional usable interior area in one location at 407 Essex Street, Lawrence, MA 01840.
Key Highlights
- 3,654 sq. ft. street‑level storefront with large windows and sidewalk visibility in downtown
- Includes a finished, high‑ceiling basement with an additional 3,654 sq. ft. of usable space
- Brick building built in 1971
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
$60,037
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
6.34%
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%
$1,200,740
$1.2M
Cap Rate 7%
$857,671
$857.7K
Cap Rate 9%
$667,078
$667.1K
Market Conditions
NOI Build-Up for 3,654 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
$87.7K $24.00/SF
− Vacancy
−$1.9K −$0.53/SF
EGI
$85.8K $23.47/SF
− OpEx
−$25.7K −$7.04/SF
NOI
$60.0K $16.43/SF
Area
Essex County, MA
Vacancy
2.20%
Lease Rate
$24.00 /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%
$1,200,740
Cap Rate 7%
$857,671
Cap Rate 9%
$667,078
Alternative Uses
Best Use
Office B
$1.45M
$1.27M – $1.70M
NOI $101,848 @ 7.0% cap · market cap 10.75%
Second Best
Retail
$857.7K
$750.5K – $1.00M
NOI $60,037 @ 7.0% cap · market cap 6.34%
Theoretical Best
Office A
$2.16M
$1.89M – $2.52M
NOI $151,421 @ 7.0% cap · market cap 15.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,931
Businesses Nearby
Explore this area
Business Placement
Demographics for 01840, MA
7,121
Population
3,415
Households
2.1
Avg Household Size
36
Median Age
13%
College-Educated
69%
High-School Grad
0.5 sq mi
ZIP Area
14,242
Density / Sq Mi
$34,630
Median Household Income
$31,930
Median Earnings
$1,174
Median Rent
Market
Vacancy Rate% for Office 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?
Retail space - Street-level storefront with large windows plus a finished high-ceiling basement near a major community college campus.
Where is this retail space located?
The property is located at 407 Essex Street Lawrence, MA.
What is the asking price?
The asking price for this property is $947,000.
What are key features of this property?
This property features: 3,654 sq. ft. street‑level storefront with large windows and sidewalk visibility in downtown; Includes a finished, high‑ceiling basement with an additional 3,654 sq. ft. of usable space; Brick building built in 1971
