Commercial Building with Income
For Sale
$2,980,000
8510 Bay 16th St, Brooklyn, NY 11214
Fully occupied commercial building with strong income and growth potential.
Property Size7,311 SF
Price / SF$407.60
Days on Market105
Property Features for 8510 Bay 16th St
General Information
Standard status
Active
Size
7,311 SF
Property subtype
Commercial
Building Details
Year Built
1996
Listing Agency:
Womcore LLC dba Remax Edge
(718) 612-3088
Listed By:
Jason Zhou · License #10301217017
(718) 612-3088
Source:
Elliman
Added: Apr 24
Changed: Jul 10
Last Checked: Aug 6 at 7:35AM
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 Womcore LLC dba Remax Edge
Investment Insights
Based on property information with market context.
This commercial building, constructed in 1996, features C1-2/R5 overlay zoning and is currently fully occupied by five commercial tenants. The first floor measures approximately 30x103 ft (about 3,111 SF), while the second floor and basement each measure approximately 30x70 ft, resulting in a total area of roughly 7,311 SF. The building is situated on a 38x103 ft lot and includes a private driveway. The property includes an elevator providing access from the basement to the top floor, along with four separate entrances. The building is equipped with five separate water heaters and five independent HVAC systems. The property generates approximately $191,400 in annual income with a net operating income (NOI) of $134,546, offering potential for future income growth. The location has a walk score of 96, indicating it is a walker's paradise, a transit score of 84, indicating excellent transit options, and a bike score of 56, indicating it is bikeable.
Key Highlights
- High Annual Income: Generating approximately $191,400 annually with a Net Operating Income (NOI) of $134,546.
- Fully Occupied: Currently 100% leased by 5 commercial tenants.
- Desirable Zoning: C1‑2/R5 overlay zoning offers flexible usage options.
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
$201,279
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
6.75%
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%
$4,025,580
$4.0M
Cap Rate 7%
$2,875,414
$2.9M
Cap Rate 9%
$2,236,433
$2.2M
Market Conditions
NOI Build-Up for 7,311 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
$333.4K $45.60/SF
− Vacancy
−$65.0K −$8.89/SF
EGI
$268.4K $36.71/SF
− OpEx
−$67.1K −$9.18/SF
NOI
$201.3K $27.53/SF
Area
ZIP 11214
Vacancy
19.50%
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%
$4,025,580
Cap Rate 7%
$2,875,414
Cap Rate 9%
$2,236,433
Alternative Uses
Best Use
Office B
$2.88M
$2.52M – $3.35M
NOI $201,279 @ 7.0% cap · market cap 6.75%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.26M
$3.73M – $4.98M
NOI $298,541 @ 7.0% cap · market cap 10.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,131
Businesses Nearby
Explore this area
Business Placement
Demographics for 11214, NY
96,560
Population
33,341
Households
2.9
Avg Household Size
39
Median Age
32%
College-Educated
76%
High-School Grad
2.0 sq mi
ZIP Area
48,280
Density / Sq Mi
$64,286
Median Household Income
$41,172
Median Earnings
$1,710
Median Rent
$1,007,400
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
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 - Fully occupied commercial building with strong income and growth potential.
Where is this office building located?
The property is located at 8510 Bay 16th St Brooklyn, NY.
What is the asking price?
The asking price for this property is $2,980,000.
What are key features of this property?
This property features: High Annual Income: Generating approximately $191,400 annually with a Net Operating Income (NOI) of $134,546.; Fully Occupied: Currently 100% leased by 5 commercial tenants.; Desirable Zoning: C1‑2/R5 overlay zoning offers flexible usage options.
