Retail Development Opportunity on
For Sale
Contact for pricing
7352 Pendleton Pike, Indianapolis, IN 46226
Retail development opportunity with high traffic and commercial zoning.
Property Size12,000 SF
Price / SF$250
Days on Market175
Property Features for 7352 Pendleton Pike
General Information
Standard status
Active
Size
12,000 SF
Class
B
Property subtype
Retail
Zoning
C-4
Occupancy
70%
Lease Type
NNN
Investment Type
Value Add
Building Details
Year Built
1989
Tenancy
Multi
Listing Agency:
ParaSell Inc
(949) 942-6585
Listed By:
Scott Reid · License #9009637
Source:
Crexi
Added: Feb 17
Changed: Aug 11
Last Checked: Aug 10 at 1:21PM
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 ParaSell Inc
Investment Insights
Based on property information with market context.
This property presents a retail development opportunity with frontage on Pendleton Pike, which sees 30,000 vehicles per day. The existing retail strip center offers value-add potential through month-to-month and short-term leases. The commercial zoning allows for various uses, including quick-service restaurants, gas stations, car washes, and other retail concepts. The property is located off the I-465 exit ramp and across from a major home improvement retailer.
Key Highlights
- Prime retail development opportunity on Pendleton Pike (30,000 VPD).
- Direct frontage on the area's primary retail corridor.
- Strategically located directly off I‑465 exit ramp.
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
$145,727
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
4.86%
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%
$2,914,540
$2.9M
Cap Rate 7%
$2,081,814
$2.1M
Cap Rate 9%
$1,619,189
$1.6M
Market Conditions
NOI Build-Up for 12,000 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
$227.5K $18.96/SF
− Vacancy
−$19.3K −$1.61/SF
EGI
$208.2K $17.35/SF
− OpEx
−$62.5K −$5.20/SF
NOI
$145.7K $12.14/SF
Area
ZIP 46226
Vacancy
8.50%
Lease Rate
$18.96 /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%
$2,914,540
Cap Rate 7%
$2,081,814
Cap Rate 9%
$1,619,189
Alternative Uses
Best Use
Retail
$2.08M
$1.82M – $2.43M
NOI $145,727 @ 7.0% cap · market cap 4.86%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.15M
$2.75M – $3.67M
NOI $220,320 @ 7.0% cap · market cap 7.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
602
Businesses Nearby
Explore this area
Business Placement
Demographics for 46226, IN
43,997
Population
21,380
Households
2.1
Avg Household Size
35
Median Age
24%
College-Educated
81%
High-School Grad
14.8 sq mi
ZIP Area
2,973
Density / Sq Mi
$47,086
Median Household Income
$34,225
Median Earnings
$1,045
Median Rent
$148,900
Median Home Value
Market
Vacancy Rate% for Retail in Indianapolis, IN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail property - Retail development opportunity with high traffic and commercial zoning.
Where is this retail property located?
The property is located at 7352 Pendleton Pike Indianapolis, IN.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Prime retail development opportunity on Pendleton Pike (30,000 VPD).; Direct frontage on the area's primary retail corridor.; Strategically located directly off I‑465 exit ramp.
