Commercial Building in Business
For Sale
Contact for pricing
Pending
605 Silver St, Agawam, MA
One-story commercial building with parking, suitable for various uses.
Property Size4,950 SF
Lot Size1.16 Acres
Days on Market325
Property Features for 605 Silver St
General Information
Standard status
Pending
Size
4,950 SF
Lot size
1.16 Acres
Property subtype
OFFICE
Listing Agency:
Kelley & Katzer Real Estate
(413) 209-9933
Listed By:
Kelley & Katzer Real Estate Team
(413) 209-9933
Source:
Moodyscre
Added: Oct 1, 2025
Changed: Aug 9
Last Checked: Aug 20 at 6:34AM
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 Kelley & Katzer Real Estate
Investment Insights
Based on property information with market context.
This one-story commercial brick building, located in the Business District, offers convenient access to Highways, Rte 75 & 57, restaurants, and shopping. The property is zoned Industrial B, accommodating a variety of uses such as office, retail, warehouse, and restaurant, with some requiring special permits, which the buyer needs to verify. The building features two large spaces with multiple office rooms, restrooms, storage, and a full commercial-grade kitchen equipped with appliances and refrigerators/freezers. Utilities include gas heat, gas hot water, and central air. The building also has an updated architectural shingled roof. Previous uses include office space and a restaurant; the current use is a worship space. With almost 5,000 square feet of finished space, this building offers possibilities, including subdividing, which could be ideal for an owner-occupant or investor looking to maximize value and cash flow.
Key Highlights
- Prime location in Business District with easy access to Highways Rte 75 & 57, restaurants, and shopping.
- Zoned Industrial B offering a variety of uses (Office, Retail, Warehouse, Restaurant, Etc.).
- Almost 5,000 sqft of finished space with potential for subdividing.
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
$64,018
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
9.15%
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%
$1,280,360
$1.3M
Cap Rate 7%
$914,543
$914.5K
Cap Rate 9%
$711,311
$711.3K
Market Conditions
NOI Build-Up for 4,950 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
$89.1K $18.00/SF
− Vacancy
−$3.7K −$0.76/SF
EGI
$85.4K $17.24/SF
− OpEx
−$21.3K −$4.31/SF
NOI
$64.0K $12.93/SF
Area
Hampden County, MA
Vacancy
4.20%
Lease Rate
$18.00 /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%
$1,280,360
Cap Rate 7%
$914,543
Cap Rate 9%
$711,311
Alternative Uses
Best Use
Office B
$2.24M
$1.96M – $2.62M
NOI $157,065 @ 7.0% cap · market cap 22.44%
Second Best
Retail
$1.16M
$1.02M – $1.36M
NOI $81,330 @ 7.0% cap · market cap 11.62%
Theoretical Best
Office A
$3.05M
$2.67M – $3.56M
NOI $213,555 @ 7.0% cap · market cap 30.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
181
Businesses Nearby
Explore this area
Business Placement
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - One-story commercial building with parking, suitable for various uses.
Where is this office units located?
The property is located at 605 Silver St Agawam, MA.
What is the asking price?
The asking price for this property is $699,900.
What are key features of this property?
This property features: Prime location in Business District with easy access to Highways Rte 75 & 57, restaurants, and shopping.; Zoned Industrial B offering a variety of uses (Office, Retail, Warehouse, Restaurant, Etc.).; Almost 5,000 sqft of finished space with potential for subdividing.
