Multi-Suite Office
New
For Sale
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735 Newtown Rd, Norfolk, VA 23502
Two-story office property with available space and existing short-term lease income on the upper level.
Property Size6,734 SF
Price / SF$185.63
Days on Market6
Property Features for 735 Newtown Rd
General Information
Standard status
Active
Size
6,734 SF
Property subtype
OFFICE
Additional Details
Utilities to Site
Yes
Office Units
5
Building Details
Stories
2
Tenancy
Multi
Listing Agency:
S.L. Nusbaum Realty Co - Corporate
(757) 679-3278
Listed By:
John M Profilet
(757) 679-3278
Source:
Moodyscre
Added: Aug 25
Changed: Aug 30
Last Checked: Aug 30 at 2:35PM
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 S.L. Nusbaum Realty Co - Corporate
Investment Insights
Based on property information with market context.
This two-story office building contains 6,734 square feet. The full first floor offers 3,367± square feet of available space, with two electric meters serving the level. The second floor is divided into four suites, including one 650±-square-foot suite currently available and three suites occupied under short-term leases. Four electric meters serve the second floor.
The property is located at 735 Newtown Rd in Norfolk, Virginia, near the Norfolk/Virginia Beach city line. Its configuration combines an entire-floor availability with smaller upper-level suites and in-place lease occupancy.
The property is located at 735 Newtown Rd in Norfolk, Virginia, near the Norfolk/Virginia Beach city line. Its configuration combines an entire-floor availability with smaller upper-level suites and in-place lease occupancy.
Key Highlights
- 6,734‑square‑foot two‑story office building
- Entire 3,367±-square‑foot first floor available
- Four second‑floor suites, including a 650±-square‑foot available suite
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
$93,115
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
7.45%
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%
$1,862,300
$1.9M
Cap Rate 7%
$1,330,214
$1.3M
Cap Rate 9%
$1,034,611
$1.0M
Market Conditions
NOI Build-Up for 6,734 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
$134.9K $20.04/SF
− Vacancy
−$10.8K −$1.60/SF
EGI
$124.2K $18.44/SF
− OpEx
−$31.0K −$4.61/SF
NOI
$93.1K $13.83/SF
Area
Norfolk, VA
Vacancy
8.00%
Lease Rate
$20.04 /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%
$1,862,300
Cap Rate 7%
$1,330,214
Cap Rate 9%
$1,034,611
Alternative Uses
Best Use
Office B
$1.33M
$1.16M – $1.55M
NOI $93,115 @ 7.0% cap · market cap 7.45%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.43M
$1.25M – $1.67M
NOI $99,996 @ 7.0% cap · market cap 8.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Office units
Multi-tenant
Tenancy
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
2,077
Businesses Nearby
Explore this area
Business Placement
Demographics for 23502, VA
20,547
Population
8,839
Households
2.3
Avg Household Size
39
Median Age
24%
College-Educated
89%
High-School Grad
9.9 sq mi
ZIP Area
2,075
Density / Sq Mi
$66,467
Median Household Income
$37,213
Median Earnings
$1,335
Median Rent
$244,800
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two-story office property with available space and existing short-term lease income on the upper level.
Where is this office building located?
The property is located at 735 Newtown Rd Norfolk, VA.
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: 6,734‑square‑foot two‑story office building; Entire 3,367±-square‑foot first floor available; Four second‑floor suites, including a 650±-square‑foot available suite
