Three-Story Office Building with
For Sale
$2,750,000
718 CHESTNUT Street, Philadelphia, PA 19106
Commercial Sale, PHILADELPHIA, PA
Property Size9,600 SF
Lot Size0.07 Acres
Price / SF$286.46
Days on Market92
Property Features for 718 CHESTNUT Street
General Information
Property type
Other
Property subtype
Retail
Elementary school district
THE SCHOOL DISTRICT OF PHILADELPHIA
Middle school district
THE SCHOOL DISTRICT OF PHILADELPHIA
High school district
THE SCHOOL DISTRICT OF PHILADELPHIA
Standard status
Active
Lot size
0.07 Acres
Taxes and HOA fees
Tax Annual Amount
2520900
Utilities
Heating system
Forced Air
Cooling system
Central Air
Amenities
reception area
kitchenette
hardwood floors
soaring ceilings
Building Details
Year built
2014
Building materials
Block
Listing Agency:
New Horizons Real Estate, Inc. · Century 21 Real Estate
(215) 343-8100
Listed By:
Michael Stitz · License #RS208032L
(215) 833-6690
Added: Jun 4
Changed: Sep 3
Last Checked: Sep 3 at 8:06AM
MLS# PAPH2626180
Copyright © 2026 Bright MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 9,600-square-foot office building includes three stories, a fully finished basement, and elevator access to every level. The first floor features a reception area and kitchenette, while the second floor contains two large rooms with hardwood flooring and high ceilings. The third floor provides open interior space, and the basement adds storage or work area. Building systems include central air, forced-air heating, new electrical and plumbing systems, and a sprinkler installation serving all floors and the basement. Block construction and a 2014 build year complete the physical profile.
The property is currently 100% vacant and sits on a 0.07-acre lot at 718 CHESTNUT Street in Philadelphia. CMX-5 (Attached) zoning supports high-end retail, professional office use, and residential conversion. The site is located blocks from the Market Street Revitalization Project and near historical attractions, major hospitals, and restaurants.
The property is currently 100% vacant and sits on a 0.07-acre lot at 718 CHESTNUT Street in Philadelphia. CMX-5 (Attached) zoning supports high-end retail, professional office use, and residential conversion. The site is located blocks from the Market Street Revitalization Project and near historical attractions, major hospitals, and restaurants.
Key Highlights
- 9,600 square feet across three stories plus a finished basement
- Elevator service reaches all levels, including the basement
- 100% vacant office property at 718 CHESTNUT Street
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
$126,331
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
4.59%
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%
$2,526,620
$2.5M
Cap Rate 7%
$1,804,729
$1.8M
Cap Rate 9%
$1,403,678
$1.4M
Market Conditions
NOI Build-Up for 9,600 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
$210.8K $21.96/SF
− Vacancy
−$42.4K −$4.41/SF
EGI
$168.4K $17.55/SF
− OpEx
−$42.1K −$4.39/SF
NOI
$126.3K $13.16/SF
Area
Philadelphia, PA
Vacancy
20.10%
Lease Rate
$21.96 /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%
$2,526,620
Cap Rate 7%
$1,804,729
Cap Rate 9%
$1,403,678
Alternative Uses
Best Use
Office B
$1.80M
$1.58M – $2.11M
NOI $126,331 @ 7.0% cap · market cap 4.59%
Second Best
Retail
$1.55M
$1.36M – $1.81M
NOI $108,501 @ 7.0% cap · market cap 3.95%
Theoretical Best
Multifamily LT 5
$2.34M
$2.05M – $2.73M
NOI $163,823 @ 7.0% cap · market cap 5.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
17,175
Businesses Nearby
Explore this area
Business Placement
Demographics for 19106, PA
15,190
Population
9,913
Households
1.5
Avg Household Size
39
Median Age
80%
College-Educated
96%
High-School Grad
0.9 sq mi
ZIP Area
16,878
Density / Sq Mi
$129,779
Median Household Income
$93,953
Median Earnings
$2,219
Median Rent
$528,700
Median Home Value
Market
Vacancy Rate% for Office in Philadelphia, PA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Vacant office property with finished basement, elevator service, and CMX-5 zoning.
Where is this office building located?
The property is located at 718 CHESTNUT Street Philadelphia, PA.
What is the asking price?
The asking price for this property is $2,750,000.
What are key features of this property?
This property features: 9,600 square feet across three stories plus a finished basement; Elevator service reaches all levels, including the basement; 100% vacant office property at 718 CHESTNUT Street
