Flex Space with
For Sale
$475,000
556 Hammond Street, Bangor, ME 04401
Renovated office component combines private offices, meeting areas, kitchen space, and warehouse capacity.
Property Size5,250 SF
Days on Market199
Property Features for 556 Hammond Street
General Information
Standard status
Active
Size
5,250 SF
Property subtype
Commercial
Zoning
NSD
Warehouse & Industrial
Warehouse Space
1,200 SF
Office Build-Out
5,200 SF
Taxes and HOA fees
Annual Taxes
$7,695
Amenities
reception area
lunch area with kitchen
conference room with waiting area
large main room for meetings
bathroom
Building Details
Building Size
5,250 SF
Year Built
1950
Year Renovated
2022
Buildings
1
Listing Agency:
True North Realty, Inc.
(207) 290-5017
Listed By:
B Michael Ireland
(207) 290-5017
Source:
Startpoint
Added: Feb 12
Changed: Aug 29
Last Checked: Aug 29 at 8:51PM
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 True North Realty, Inc.
Investment Insights
Based on property information with market context.
This flex property includes 5200+/- sqft of office area and 1200+/- sqft of warehouse space. The office portion was renovated in 2022 and provides eight offices, a reception area, a lunch area with kitchen, a conference room with waiting area, a large meeting room, and a bathroom. Built in 1950, the property is zoned NSD.
Located at 556 Hammond Street in Bangor, Maine, the building offers a combination of organized office functions and dedicated warehouse space within one commercial property. The layout supports a range of business operations requiring both administrative areas and additional storage or work space.
Located at 556 Hammond Street in Bangor, Maine, the building offers a combination of organized office functions and dedicated warehouse space within one commercial property. The layout supports a range of business operations requiring both administrative areas and additional storage or work space.
Key Highlights
- 5200+/- sqft of office space
- 1200+/- sqft of warehouse space
- Office section renovated in 2022
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
$34,861
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
7.34%
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%
$697,220
$697.2K
Cap Rate 7%
$498,014
$498.0K
Cap Rate 9%
$387,344
$387.3K
Market Conditions
NOI Build-Up for 5,250 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
$44.1K $8.40/SF
− Vacancy
−$3.1K −$0.59/SF
EGI
$41.0K $7.81/SF
− OpEx
−$6.2K −$1.17/SF
NOI
$34.9K $6.64/SF
Area
Penobscot County, ME
Vacancy
7.00%
Lease Rate
$8.40 /SF/Yr
Expense Ratio
15.00%
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%
$697,220
Cap Rate 7%
$498,014
Cap Rate 9%
$387,344
Alternative Uses
Best Use
Office B
$1.06M
$927.7K – $1.24M
NOI $74,215 @ 7.0% cap · market cap 15.62%
Second Best
Flex RnD
$646.8K
$566.0K – $754.6K
NOI $45,276 @ 7.0% cap · market cap 9.53%
Theoretical Best
Office A
$1.70M
$1.48M – $1.98M
NOI $118,692 @ 7.0% cap · market cap 24.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
356
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 04401, ME
44,608
Population
20,932
Households
2.1
Avg Household Size
40
Median Age
37%
College-Educated
96%
High-School Grad
100.1 sq mi
ZIP Area
446
Density / Sq Mi
$66,136
Median Household Income
$40,863
Median Earnings
$1,048
Median Rent
$229,600
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
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Frequently Asked Questions
What type of property is this?
Flex space - Renovated office component combines private offices, meeting areas, kitchen space, and warehouse capacity.
Where is this flex space located?
The property is located at 556 Hammond Street Bangor, ME.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: 5200+/- sqft of office space; 1200+/- sqft of warehouse space; Office section renovated in 2022
