Office Units with Three-Zone
For Sale
$8,999,999
85 5th Avenue 8, New York City, NY 10003
Prewar office units with three-zone HVAC, brand-new electric baseboard heating, and oversized windows.
Property Size9,300 SF
Price / SF$967.74
Days on Market245
Property Features for 85 5th Avenue 8
General Information
Standard status
Active
Size
9,300 SF
Property subtype
Apartment
Financials
Asking Price
$8,990,000
HOA Fee
$18,040
Taxes and HOA fees
Annual Taxes
$216,480
Building Details
Building Size
9,300 SF
Year Built
1901
Listing Agency:
Compass
Listed By:
David Graff
(917) 664-1452
Source:
Nobleblackandpartners
Added: Jan 13
Changed: Sep 3
Last Checked: Sep 14 at 9:23AM
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 Compass
Investment Insights
Based on property information with market context.
85 Fifth Avenue offers office units in a prewar building originally built in 1901. The available space is described as having strong natural light, efficient proportions, and flexible layouts suitable for owner-users, professional firms, or investors. Modern systems support day-to-day office use, and the building is completely electric.
The space includes brand-new electric baseboard heating, 3 zone HVAC, 5 private bathrooms, 11 1/2 foot ceilings, and oversized windows. The building also has an Energy Efficiency Grade of 97 and is stated to avoid NYC Local Law 97 carbon emission fines in 2030.
The ground floor retail is anchored by the recently opened New York Flagship Nespresso Experience Store. The building is positioned at the intersection of Union Square, Flatiron, and Greenwich Village in Manhattan’s Fifth Avenue corridor.
The space includes brand-new electric baseboard heating, 3 zone HVAC, 5 private bathrooms, 11 1/2 foot ceilings, and oversized windows. The building also has an Energy Efficiency Grade of 97 and is stated to avoid NYC Local Law 97 carbon emission fines in 2030.
The ground floor retail is anchored by the recently opened New York Flagship Nespresso Experience Store. The building is positioned at the intersection of Union Square, Flatiron, and Greenwich Village in Manhattan’s Fifth Avenue corridor.
Key Highlights
- 3 zone HVAC
- Brand‑new electric baseboard heating
- 5 private bathrooms
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
$291,208
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
3.24%
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%
$5,824,160
$5.8M
Cap Rate 7%
$4,160,114
$4.2M
Cap Rate 9%
$3,235,644
$3.2M
Market Conditions
NOI Build-Up for 9,300 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
$478.8K $51.48/SF
− Vacancy
−$90.5K −$9.73/SF
EGI
$388.3K $41.75/SF
− OpEx
−$97.1K −$10.44/SF
NOI
$291.2K $31.31/SF
Area
New York, NY
Vacancy
18.90%
Lease Rate
$51.48 /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%
$5,824,160
Cap Rate 7%
$4,160,114
Cap Rate 9%
$3,235,644
Alternative Uses
Best Use
Office B
$4.16M
$3.64M – $4.85M
NOI $291,208 @ 7.0% cap · market cap 3.24%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$23.15M
$20.26M – $27.01M
NOI $1,620,432 @ 7.0% cap · market cap 18.00%
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
44,044
Businesses Nearby
Explore this area
Business Placement
Demographics for 10003, NY
57,076
Population
30,730
Households
1.9
Avg Household Size
32
Median Age
82%
College-Educated
96%
High-School Grad
0.6 sq mi
ZIP Area
95,127
Density / Sq Mi
$153,750
Median Household Income
$82,560
Median Earnings
$2,772
Median Rent
$1,137,000
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 units - Prewar office units with three-zone HVAC, brand-new electric baseboard heating, and oversized windows.
Where is this office units located?
The property is located at 85 5th Avenue 8 New York City, NY.
What is the asking price?
The asking price for this property is $8,999,999.
What are key features of this property?
This property features: 3 zone HVAC; Brand‑new electric baseboard heating; 5 private bathrooms
