Standalone Flex
For Sale
$399,000
66 Southgate Street, Worcester, MA 01603
Standalone commercial building with office, storage, and overhead-door functionality under BL-1 zoning.
Property Size3,040 SF
Price / SF$131.25
Days on Market9
Property Features for 66 Southgate Street
General Information
Standard status
Active
Size
3,040 SF
Property subtype
Industrial
Zoning
BL-1
Additional Details
Highway Access
Yes
Building Details
Building Size
3,040 SF
Listing Agency:
Kelleher & Sadowsky
Listed By:
Brian Johnson · License #9536903
(774) 272-1112
Source:
Kelleher-sadowsky
Added: Aug 26
Changed: Sep 3
Last Checked: Sep 2 at 4:07PM
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 Kelleher & Sadowsky
Investment Insights
Based on property information with market context.
This standalone flex property contains approximately 3,040 square feet configured with office space, storage areas, and an overhead door. The building previously served as a research and development facility for an environmental testing company, providing a combination of administrative and functional commercial space.
Located at 66 Southgate Street in Worcester, the property is minutes from downtown Worcester and offers access to I-290, Route 146, and the Massachusetts Turnpike. The site is zoned Business Limited BL-1 and is offered for sale.
Located at 66 Southgate Street in Worcester, the property is minutes from downtown Worcester and offers access to I-290, Route 146, and the Massachusetts Turnpike. The site is zoned Business Limited BL-1 and is offered for sale.
Key Highlights
- Approximately 3,040 SF standalone flex building
- Office areas, storage space, and an overhead door
- Former research and development facility for an environmental testing company
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
$35,393
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
8.87%
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%
$707,860
$707.9K
Cap Rate 7%
$505,614
$505.6K
Cap Rate 9%
$393,256
$393.3K
Market Conditions
NOI Build-Up for 3,040 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
$54.7K $18.00/SF
− Vacancy
−$4.2K −$1.37/SF
EGI
$50.6K $16.63/SF
− OpEx
−$15.2K −$4.99/SF
NOI
$35.4K $11.64/SF
Area
Worcester, MA
Vacancy
7.60%
Lease Rate
$18.00 /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%
$707,860
Cap Rate 7%
$505,614
Cap Rate 9%
$393,256
Alternative Uses
Best Use
Flex RnD
$542.4K
$474.6K – $632.8K
NOI $37,969 @ 7.0% cap · market cap 9.52%
Second Best
Industrial
$505.6K
$442.4K – $589.9K
NOI $35,393 @ 7.0% cap · market cap 8.87%
Theoretical Best
Office A
$1.01M
$887.9K – $1.18M
NOI $71,028 @ 7.0% cap · market cap 17.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,175
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 01603, MA
22,417
Population
8,504
Households
2.6
Avg Household Size
36
Median Age
24%
College-Educated
83%
High-School Grad
4.5 sq mi
ZIP Area
4,982
Density / Sq Mi
$63,646
Median Household Income
$40,403
Median Earnings
$1,339
Median Rent
$287,800
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Standalone commercial building with office, storage, and overhead-door functionality under BL-1 zoning.
Where is this flex space located?
The property is located at 66 Southgate Street Worcester, MA.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: Approximately 3,040 SF standalone flex building; Office areas, storage space, and an overhead door; Former research and development facility for an environmental testing company
