Retail Building on
For Sale
Contact for pricing
500 E Lancaster Ave, Reading, PA 19607
The site includes a large building situated on an acreage parcel.
Property Size26,000 SF
Lot Size2.51 Acres
Price / SF$157.69
Days on Market161
Property Features for 500 E Lancaster Ave
General Information
Standard status
Active
Size
26,000 SF
Lot size
2.51 Acres
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Building Details
Buildings
26000
Listing Agency:
Bennett Williams Commercial
(717) 843-5555
Listed By:
Chad Stine · License #PA RS223285L
Source:
Crexi
Added: Mar 24
Changed: Aug 30
Last Checked: Aug 30 at 3:35PM
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 Bennett Williams Commercial
Investment Insights
Based on property information with market context.
This retail property includes a 26,000-square-foot building positioned on 2.51 acres. The offering combines substantial enclosed space with a land component, providing a commercial property configuration suited to retail-oriented evaluation.
The property is located at 500 E Lancaster Ave in Reading, Pennsylvania 19607.
The property is located at 500 E Lancaster Ave in Reading, Pennsylvania 19607.
Key Highlights
- 26,000 SF building
- 2.51‑acre site
- Located at 500 E Lancaster Ave, Reading, PA 19607
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
$263,626
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
6.43%
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%
$5,272,520
$5.3M
Cap Rate 7%
$3,766,086
$3.8M
Cap Rate 9%
$2,929,178
$2.9M
Market Conditions
NOI Build-Up for 26,000 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
$393.1K $15.12/SF
− Vacancy
−$16.5K −$0.64/SF
EGI
$376.6K $14.48/SF
− OpEx
−$113.0K −$4.35/SF
NOI
$263.6K $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%
$5,272,520
Cap Rate 7%
$3,766,086
Cap Rate 9%
$2,929,178
Alternative Uses
Best Use
Retail
$3.77M
$3.30M – $4.39M
NOI $263,626 @ 7.0% cap · market cap 6.43%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.27M
$3.73M – $4.98M
NOI $298,771 @ 7.0% cap · market cap 7.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
472
Businesses Nearby
Explore this area
Business Placement
Demographics for 19607, PA
23,431
Population
10,177
Households
2.3
Avg Household Size
42
Median Age
31%
College-Educated
94%
High-School Grad
11.2 sq mi
ZIP Area
2,092
Density / Sq Mi
$80,550
Median Household Income
$46,953
Median Earnings
$1,283
Median Rent
$210,800
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?
Retail space - The site includes a large building situated on an acreage parcel.
Where is this retail space located?
The property is located at 500 E Lancaster Ave Reading, PA.
What is the asking price?
The asking price for this property is $4,100,000.
What are key features of this property?
This property features: 26,000 SF building; 2.51‑acre site; Located at 500 E Lancaster Ave, Reading, PA 19607
