Building Details

Building Size 1,925 SF

Year Built 1925

Buildings 1

Listing Agency: Colarusso Realty

Listed By: Alexander Colarusso Show Phone

Source: Iverty

Added: Aug 24 Changed: Sep 3 Last Checked: Sep 2 at 5:03PM

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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 Colarusso Realty

Investment Insights

Based on property information with market context.

This office building occupies approximately 0.24 acres at 630 Salem Street and is positioned for professional office use. The property includes on-site parking, has undergone recent upgrades, and is described as easy to manage. Its 1925 construction date provides established building history within a current commercial setting.

The property is located in Lynnfield’s Limited Business District, along Salem Street near Route 1. The source information identifies potential applications including law, accounting, insurance, coffee shop, breakfast restaurant, and fitness or gym studio uses. Its placement on a well-traveled street supports convenient access for office users and visitors.

Key Highlights

• Approximately 0.24‑acre office property at 630 Salem Street
• Located in Lynnfield’s Limited Business District
• On‑site parking included

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

$53,656

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

8.66%

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%

$1,073,120 $1.1M

Cap Rate 7%

$766,514 $766.5K

Cap Rate 9%

$596,178 $596.2K

Market Conditions

NOI Build-Up for 1,925 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

$87.8K $45.60/SF

− Vacancy

−$16.2K −$8.44/SF

EGI

$71.5K $37.16/SF

− OpEx

−$17.9K −$9.29/SF

NOI

$53.7K $27.87/SF

Area

Essex County, MA

Vacancy

18.50%

Lease Rate

$45.60 /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%

$1,073,120

Cap Rate 7%

$766,514

Cap Rate 9%

$596,178

Alternative Uses

Best Use

Office B

$766.5K

$670.7K – $894.3K (±1% cap)

NOI $53,656 @ 7.0% cap · market cap 8.66%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.14M

$997.2K – $1.33M (±1% cap)

NOI $79,772 @ 7.0% cap · market cap 12.87%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Office buildings

Suggested Use

Top Pick Building Supply Restaurant Dental Office Pharmacy Big Box & Wholesale Store Nail Salon

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

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

351

Businesses Nearby

Explore this area Business Placement

Demographics for 01940, MA

13,326

Population

5,033

Households

2.6

Avg Household Size

44

Median Age

61%

College-Educated

98%

High-School Grad

10.1 sq mi

ZIP Area

1,319

Density / Sq Mi

$171,044

Median Household Income

$86,135

Median Earnings

$2,333

Median Rent

$891,100

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

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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?

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Frequently Asked Questions

What type of property is this?

Office building - Limited Business District property with on-site parking and convenient access near Route 1.

Where is this office building located?

The property is located at 630 Salem St Lynnfield, MA.

What is the asking price?

The asking price for this property is $619,900.

What are key features of this property?

This property features: Approximately 0.24‑acre office property at 630 Salem Street; Located in Lynnfield’s Limited Business District; On‑site parking included