Commercial Land with Townhouse
For Sale
Contact for pricing
601 E Lancaster Ave. Downingtown Pa, Downingtown, PA 19355
Existing 1929 building supports office use or conversion back to residential use.
Property Size2,247 SF
Price / SF$333.78
Days on Market150
Property Features for 601 E Lancaster Ave. Downingtown Pa
General Information
Standard status
Active
Size
2,247 SF
Property subtype
Land, Office
Building Details
Year Built
1929
Buildings
1
Stories
3
Listing Agency:
Lieberman Earley & Company
Listed By:
Phil Earley, CCIM · License #PA
Source:
Crexi
Added: Apr 3
Changed: Aug 30
Last Checked: Aug 30 at 1:57AM
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 Lieberman Earley & Company
Investment Insights
Based on property information with market context.
This commercial land listing includes an existing building constructed in 1929. The structure can support office use, or it may be converted back to residential use.
Subdivision work is underway to add four townhouse lots to the property. The address is 601 E Lancaster Ave. in Downingtown, Pennsylvania.
Subdivision work is underway to add four townhouse lots to the property. The address is 601 E Lancaster Ave. in Downingtown, Pennsylvania.
Key Highlights
- Subdivision planning includes 4 additional townhouse lots
- Existing building constructed in 1929
- Potential office use for the current building
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
$35,327
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
4.71%
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%
$706,540
$706.5K
Cap Rate 7%
$504,671
$504.7K
Cap Rate 9%
$392,522
$392.5K
Market Conditions
NOI Build-Up for 2,247 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
$58.5K $26.04/SF
− Vacancy
−$11.4K −$5.08/SF
EGI
$47.1K $20.96/SF
− OpEx
−$11.8K −$5.24/SF
NOI
$35.3K $15.72/SF
Area
Chester County, PA
Vacancy
19.50%
Lease Rate
$26.04 /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%
$706,540
Cap Rate 7%
$504,671
Cap Rate 9%
$392,522
Alternative Uses
Best Use
Office B
$504.7K
$441.6K – $588.8K
NOI $35,327 @ 7.0% cap · market cap 4.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$681.3K
$596.1K – $794.8K
NOI $47,689 @ 7.0% cap · market cap 6.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
260
Businesses Nearby
Explore this area
Business Placement
Demographics for 19355, PA
29,273
Population
11,815
Households
2.5
Avg Household Size
41
Median Age
73%
College-Educated
97%
High-School Grad
38.3 sq mi
ZIP Area
764
Density / Sq Mi
$162,917
Median Household Income
$87,900
Median Earnings
$1,960
Median Rent
$662,200
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Existing 1929 building supports office use or conversion back to residential use.
Where is this commercial land located?
The property is located at 601 E Lancaster Ave. Downingtown Pa Downingtown, PA.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Subdivision planning includes 4 additional townhouse lots; Existing building constructed in 1929; Potential office use for the current building
