Building Details

Year Built 1880

Construction brick

Listing Agency: F.C. Tucker Commercial d***@fctuckeremge.com Show Phone

Listed By: Dylan Krohn · License #RB19000887 Show Phone

Source: Moodyscre

Added: Jul 31 Changed: Aug 9 Last Checked: Aug 10 at 2:54AM

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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 F.C. Tucker Commercial

Investment Insights

Based on property information with market context.

Constructed in 1880, this 1,032-square-foot brick office building is currently used by the New Harmony Gazette office. The compact commercial footprint offers a clearly defined existing office configuration at 505 Main St.

The property is located in New Harmony, Indiana, within steps of shops, restaurants, and cultural landmarks. Its setting places the office near established community destinations in one of Indiana’s historic communities.

Key Highlights

• 1,032‑square‑foot office building
• Brick construction dating to 1880
• Currently used by the New Harmony Gazette office

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

$12,557

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

3.14%

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%

$251,140 $251.1K

Cap Rate 7%

$179,386 $179.4K

Cap Rate 9%

$139,522 $139.5K

Market Conditions

NOI Build-Up for 1,032 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

$19.8K $19.20/SF

− Vacancy

−$3.1K −$2.98/SF

EGI

$16.7K $16.22/SF

− OpEx

−$4.2K −$4.06/SF

NOI

$12.6K $12.17/SF

Area

Posey County, IN

Vacancy

15.50%

Lease Rate

$19.20 /SF/Yr

Expense Ratio

25.00%

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%

$251,140

Cap Rate 7%

$179,386

Cap Rate 9%

$139,522

Alternative Uses

Best Use

Office B

$179.4K

$157.0K – $209.3K (±1% cap)

NOI $12,557 @ 7.0% cap · market cap 3.14%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$256.2K

$224.2K – $298.9K (±1% cap)

NOI $17,934 @ 7.0% cap · market cap 4.48%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Office buildings

Suggested Use

Top Pick HVAC Service Building Supply Grocery & Convenience Store Big Box & Wholesale Store Kitchen & Bath Showroom Cafe & Coffee Shop

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

222

Businesses Nearby

Explore this area Business Placement

Demographics for 47631, IN

1,908

Population

1,001

Households

1.9

Avg Household Size

51

Median Age

26%

College-Educated

93%

High-School Grad

59.4 sq mi

ZIP Area

32

Density / Sq Mi

$60,509

Median Household Income

$39,611

Median Earnings

$875

Median Rent

$184,300

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

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Frequently Asked Questions

What type of property is this?

Office building - Compact commercial property with an established office use in New Harmony’s historic community setting.

Where is this office building located?

The property is located at 505 Main St New Harmony, IN.

What is the asking price?

The asking price for this property is $400,000.

What are key features of this property?

This property features: 1,032‑square‑foot office building; Brick construction dating to 1880; Currently used by the New Harmony Gazette office