Flex Space with Bay
New
For Sale
$1,250,000
602 Tacoma Street, Allentown, PA 18109
Office and warehouse areas provide a foundation for owner-user operations or redevelopment planning, subject to approvals.
Property Size22,000 SF
Lot Size1.32 Acres
Price / SF$56.82
Days on Market1
Property Features for 602 Tacoma Street
General Information
Standard status
Active
Size
22,000 SF
Class
C
Lot size
1.32 Acres
Property subtype
Health Care
Zoning
GX-C _ Residential-Office Corridor
Warehouse & Industrial
Clear Height
12 ft
Voltage
480 V
Additional Details
Highway Access
Yes
Building Details
Building Size
22,000 SF
Listing Agency:
RE/MAX
Listed By:
Anthony Iovine · License #RS334145
(215) 343-8200
Source:
Remaxcommercial
Added: Sep 22
Last Checked: Sep 22 at 1:39PM
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 RE/MAX
Investment Insights
Based on property information with market context.
This approximately 22,000 SF facility occupies two parcels totaling approximately 1.32 acres and combines office and warehouse areas in a flexible existing configuration. The building includes approximately 12-foot ceiling heights, three bay doors, and 277/480V electrical service. The property is zoned GX-C Residential-Office Corridor, supporting evaluation of commercial, professional, residential, and adaptive-reuse concepts subject to applicable permitting and City approvals.
The site is at 602 Tacoma Street in Allentown, with access to Airport Road, Route 22, Lehigh Valley International Airport, and employment centers throughout the Lehigh Valley. Its east-side setting includes established commercial and residential surroundings and places the property within the greater Allentown-Bethlehem market. The existing improvements can be considered for owner-user occupancy, investment, or redevelopment planning.
The site is at 602 Tacoma Street in Allentown, with access to Airport Road, Route 22, Lehigh Valley International Airport, and employment centers throughout the Lehigh Valley. Its east-side setting includes established commercial and residential surroundings and places the property within the greater Allentown-Bethlehem market. The existing improvements can be considered for owner-user occupancy, investment, or redevelopment planning.
Key Highlights
- Approximately 22,000 SF office/warehouse facility
- Two parcels totaling approximately 1.32 acres
- GX‑C Residential‑Office Corridor zoning
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
$99,016
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
7.92%
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%
$1,980,320
$2.0M
Cap Rate 7%
$1,414,514
$1.4M
Cap Rate 9%
$1,100,178
$1.1M
Market Conditions
NOI Build-Up for 22,000 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
$150.5K $6.84/SF
− Vacancy
−$9.0K −$0.41/SF
EGI
$141.5K $6.43/SF
− OpEx
−$42.4K −$1.93/SF
NOI
$99.0K $4.50/SF
Area
Allentown, PA
Vacancy
6.00%
Lease Rate
$6.84 /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%
$1,980,320
Cap Rate 7%
$1,414,514
Cap Rate 9%
$1,100,178
Alternative Uses
Best Use
Mixed Use
$3.07M
$2.69M – $3.58M
NOI $214,830 @ 7.0% cap · market cap 17.19%
Second Best
Warehouse
$1.94M
$1.70M – $2.27M
NOI $136,004 @ 7.0% cap · market cap 10.88%
Theoretical Best
Specialty Retail
$4.32M
$3.78M – $5.04M
NOI $302,544 @ 7.0% cap · market cap 24.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
12 ft
Clear height
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
635
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 18109, PA
18,915
Population
7,395
Households
2.6
Avg Household Size
37
Median Age
19%
College-Educated
80%
High-School Grad
8.2 sq mi
ZIP Area
2,307
Density / Sq Mi
$55,437
Median Household Income
$36,632
Median Earnings
$1,239
Median Rent
$180,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in Northeast region
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Frequently Asked Questions
What type of property is this?
Flex space - Office and warehouse areas provide a foundation for owner-user operations or redevelopment planning, subject to approvals.
Where is this flex space located?
The property is located at 602 Tacoma Street Allentown, PA.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Approximately 22,000 SF office/warehouse facility; Two parcels totaling approximately 1.32 acres; GX‑C Residential‑Office Corridor zoning
