Building Details

Year Built 1940

Buildings 1

Stories 3

Tenancy Multi

Listing Agency: Berkshire Hathaway HomeServices The Preferred Realty Pittsburgh b***@tprsold.com Show Phone

Listed By: Bob Dini · License #PA RS177165L

Source: Crexi

Added: Aug 6 Changed: Aug 10 Last Checked: Aug 10 at 3:36AM

Report an Issue

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 Berkshire Hathaway HomeServices The Preferred Realty Pittsburgh

Investment Insights

Based on property information with market context.

This well-maintained office building at 514 Washington Road offers approximately 5616 interior square feet of finished space across three levels. The layout includes 2191 square feet at the walk-in front street level, 2142 square feet on the mezzanine, and 1283 square feet on the lower terrace level, which is accessed from the rear. An integral garage/warehouse area adds over 1000 square feet at the terrace level.

The property includes five rental units that are fully occupied, along with 12 parking spaces in front and 10 additional spaces at the rear terrace level. Located in Mt. Lebanon's business district, the building has visibility from a corridor with a traffic count exceeding 30,000 vehicles and is zoned Commercial. Built in 1940, the property also offers the flexibility of continued rental use or occupancy by an owner.

Key Highlights

• Approximately 5616 interior square feet of finished space across 3 levels
• Five rental units are fully occupied
• Integral garage/warehouse area adds over 1000 square feet

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

$71,742

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

5.98%

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%

$1,434,840 $1.4M

Cap Rate 7%

$1,024,886 $1.0M

Cap Rate 9%

$797,133 $797.1K

Market Conditions

NOI Build-Up for 5,616 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

$126.7K $22.56/SF

− Vacancy

−$31.0K −$5.53/SF

EGI

$95.7K $17.03/SF

− OpEx

−$23.9K −$4.26/SF

NOI

$71.7K $12.77/SF

Area

Pittsburgh, PA

Vacancy

24.50%

Lease Rate

$22.56 /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%

$1,434,840

Cap Rate 7%

$1,024,886

Cap Rate 9%

$797,133

Alternative Uses

Best Use

Office B

$1.02M

$896.8K – $1.20M (±1% cap)

NOI $71,742 @ 7.0% cap · market cap 5.98%

Second Best

Warehouse

$550.2K

$481.5K – $641.9K (±1% cap)

NOI $38,516 @ 7.0% cap · market cap 3.21%

Theoretical Best

Office A

$1.79M

$1.57M – $2.09M (±1% cap)

NOI $125,200 @ 7.0% cap · market cap 10.43%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

The Eye Gallery Ophthalmologist The Enlightened Esthi (Bike/Boat/Book/etc) Store The Medicine Shoppe Pharmacy Nails Amour Hair Salon Circulation Central Gym & Fitness Center

Suggested Use

Top Pick Food Market Grocery & Convenience Store (Bike/Boat/Book/etc) Store Daycare Center Big Box & Wholesale Store Hotel & Motel

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

5

Office units

100%

Occupancy

Multi-tenant

Tenancy

Location Intelligence

Trade Area within ½ mile

1,320

Businesses Nearby

Explore this area Business Placement

Demographics for 15228, PA

18,110

Population

7,776

Households

2.3

Avg Household Size

41

Median Age

67%

College-Educated

98%

High-School Grad

3.2 sq mi

ZIP Area

5,659

Density / Sq Mi

$131,087

Median Household Income

$70,899

Median Earnings

$1,130

Median Rent

$363,400

Median Home Value

Market

Vacancy Rate% for Office in Northeast region

13.1% 2019

15.4% 2020

17.6% 2021

19.1% 2022

20.2% 2023

20.9% 2024

19.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this office buildings located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Frequently Asked Questions

What type of property is this?

Office building - Three-level office property with five occupied rental units, parking, and integral garage/warehouse space.

Where is this office building located?

The property is located at 514 Washington Road Mt Lebanon, PA.

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: Approximately 5616 interior square feet of finished space across 3 levels; Five rental units are fully occupied; Integral garage/warehouse area adds over 1000 square feet