Montauk Highway Commercial
For Sale
$1,200,000
494 Montauk Hwy, East Quogue, NY 11942
2,512 SF building on 0.26 acres, Village Business zone.
Property Size2,512 SF
Lot Size0.26 Acres
Price / SF$477.71
Days on Market156
Property Features for 494 Montauk Hwy
General Information
Standard status
Active
Size
2,512 SF
Lot size
0.26 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$8,804
Building Details
Year Built
1978
Listing Agency:
DOUGLAS ELLIMAN REAL ESTATE
(631) 487-0366
Listed By:
Susan Connelly · License #977929
(631) 487-0366
Source:
Elliman
Added: Mar 10
Changed: Aug 12
Last Checked: Aug 12 at 10:09AM
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 DOUGLAS ELLIMAN REAL ESTATE
Investment Insights
Based on property information with market context.
This property features a 2,512 square foot building situated on 0.26 acres. It benefits from a newer 50-year metal roof and a newer propane gas furnace. The property is zoned Village Business and is located on highly-trafficked Montauk Highway. An adjacent 1.01-acre lot is also available for sale. The existing hardware store business and inventory, excluding the machinery rental business, are available for purchase for an additional cost. This property is suitable for contractors needing outdoor storage, investors, or developers, offering the opportunity to establish a business in the Hamptons.
Key Highlights
- Highly‑trafficked Montauk Hwy location
- Zoned Village Business
- 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 0.26 acres, Village Business zone.
Where is this storefront property located?
The property is located at 494 Montauk Hwy 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: Highly‑trafficked Montauk Hwy location; Zoned Village Business; Newer 50‑year metal roof
