Renovated Freestanding Office
For Sale
$749,000
8 Essex Street, Salem, MA 01970
Owner-occupant office property with private rooms, reception, basement storage, and wheelchair-accessible entry.
Property Size1,428 SF
Price / SF$524.51
Days on Market19
Property Features for 8 Essex Street
General Information
Standard status
Active
Size
1,428 SF
Property subtype
Commercial
Building Details
Year Built
1800
Year Renovated
2006
Buildings
1
Owner Occupied
Yes
Listing Agency:
Gibson Sotheby's International Realty
Listed By:
Michael Selbst
(978) 922-3683
Source:
Jbarrettrealty
Added: Sep 5
Changed: Sep 21
Last Checked: Sep 22 at 5:06PM
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 Gibson Sotheby's International Realty
Investment Insights
Based on property information with market context.
This 1,428-square-foot freestanding office building offers a practical owner-user layout with 3 private offices or rooms, a reception area, task space, shared workspace, and basement storage. The property was renovated to the studs in 2006 and includes 200-amp electrical service, open cell wall insulation, closed cell roof insulation, and Pella and Andersen windows. Central air and the furnace were replaced in 2021, along with the hot water heater.
A side entrance provides wheelchair access, while easy on-street parking supports employees and visitors. The property is located at 8 Essex Street in Salem, near the Beverly Bridge and Collins Cove, with Derby Street and downtown Salem within walking distance.
A side entrance provides wheelchair access, while easy on-street parking supports employees and visitors. The property is located at 8 Essex Street in Salem, near the Beverly Bridge and Collins Cove, with Derby Street and downtown Salem within walking distance.
Key Highlights
- 1,428 SF freestanding office building
- 3 private offices or rooms plus reception, task, and shared workspace
- Renovated to the studs in 2006
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
$39,803
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
5.31%
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%
$796,060
$796.1K
Cap Rate 7%
$568,614
$568.6K
Cap Rate 9%
$442,256
$442.3K
Market Conditions
NOI Build-Up for 1,428 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
$65.1K $45.60/SF
− Vacancy
−$12.0K −$8.44/SF
EGI
$53.1K $37.16/SF
− OpEx
−$13.3K −$9.29/SF
NOI
$39.8K $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%
$796,060
Cap Rate 7%
$568,614
Cap Rate 9%
$442,256
Alternative Uses
Best Use
Office B
$568.6K
$497.5K – $663.4K
NOI $39,803 @ 7.0% cap · market cap 5.31%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$845.4K
$739.7K – $986.3K
NOI $59,176 @ 7.0% cap · market cap 7.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,211
Businesses Nearby
Explore this area
Business Placement
Demographics for 01970, MA
44,451
Population
20,920
Households
2.1
Avg Household Size
39
Median Age
50%
College-Educated
92%
High-School Grad
8.2 sq mi
ZIP Area
5,421
Density / Sq Mi
$85,189
Median Household Income
$52,024
Median Earnings
$1,800
Median Rent
$497,500
Median Home Value
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Market
Vacancy Rate% for Office in Northeast region
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Frequently Asked Questions
What type of property is this?
Office building - Owner-occupant office property with private rooms, reception, basement storage, and wheelchair-accessible entry.
Where is this office building located?
The property is located at 8 Essex Street Salem, MA.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: 1,428 SF freestanding office building; 3 private offices or rooms plus reception, task, and shared workspace; Renovated to the studs in 2006
