East Quogue Retail
For Sale
$1,200,000
494 Montauk Highway, East Quogue, NY 11942
SINGLE_FAMILY - East Quogue, NY
Property Size2,512 SF
Lot Size0.26 Acres
Price / SF$477.71
Days on Market874
Property Features for 494 Montauk Highway
General Information
Property type
Residential
Property subtype
Retail
Zoning
VB
Parking
9
Directions
Montauk Hwy East to #494 Montauk Hwy, on the North side of the Street.
Standard status
Active
APN
0900-315-00-03-00-013-001
Size
2,512 SF
Lot size
0.26 Acres
Taxes and HOA fees
Tax Annual Amount
8804
Utilities
Sewer type
Septic Tank
Heating system
Forced Air, Propane (Heating)
Building Details
Year built
1978
Floors in Building
1
Listing Agency:
Douglas Elliman Real Estate
(631) 723-2721
Listed By:
Richard Connelly · License #977929
(631) 953-5750
Added: Mar 21, 2024
Changed: May 23
Last Checked: Aug 11 at 7:06PM
MLS# L3539473
Copyright © 2026 OneKey MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
A 2,512 sq ft building is available for purchase on 0.26 acres. The property features a newer 50-year metal roof and a newer propane gas furnace. Zoned Village Business (VB), the property is located on highly-trafficked Montauk Hwy. An additional 1.01-acre adjacent lot is also available for sale. The existing hardware store business and inventory, excluding the machinery rental business, may be purchased for an additional cost. The property is suitable for contractors needing outdoor storage, investors, or developers. Located in East Quogue, NY, this property presents an opportunity to create a business in the Hamptons.
Key Highlights
- High‑traffic location on Montauk Hwy.
- Zoned Village Business, offering diverse business opportunities.
- Newer 50‑year metal roof.
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
$49,112
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
4.09%
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%
$982,240
$982.2K
Cap Rate 7%
$701,600
$701.6K
Cap Rate 9%
$545,689
$545.7K
Market Conditions
NOI Build-Up for 2,512 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
$75.4K $30.00/SF
− Vacancy
−$5.2K −$2.07/SF
EGI
$70.2K $27.93/SF
− OpEx
−$21.0K −$8.38/SF
NOI
$49.1K $19.55/SF
Area
Suffolk County, NY
Vacancy
6.90%
Lease Rate
$30.00 /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%
$982,240
Cap Rate 7%
$701,600
Cap Rate 9%
$545,689
Alternative Uses
Best Use
Retail
$701.6K
$613.9K – $818.5K
NOI $49,112 @ 7.0% cap · market cap 4.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$765.3K
$669.6K – $892.8K
NOI $53,569 @ 7.0% cap · market cap 4.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
198
Businesses Nearby
7k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
7-Eleven
Shops & Services
7,417 visits/mo
0.4 miles
Demographics for 11942, NY
5,571
Population
3,471
Households
1.6
Avg Household Size
45
Median Age
51%
College-Educated
93%
High-School Grad
8.5 sq mi
ZIP Area
655
Density / Sq Mi
$106,875
Median Household Income
$50,816
Median Earnings
$1,785
Median Rent
$801,100
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?
Storefront property - 2,512 SF building on Montauk Hwy, East Quogue.
Where is this storefront property located?
The property is located at 494 Montauk Highway East Quogue, NY.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: High‑traffic location on Montauk Hwy.; Zoned Village Business, offering diverse business opportunities.; Newer 50‑year metal roof.
