General Commercial Office
For Sale
$399,900
860 N Reading Road, Ephrata, PA 17522
Two-story general commercial building with first-floor offices and a convertible second-floor residence.
Property Size1,775 SF
Price / SF$225.30
Days on Market91
Property Features for 860 N Reading Road
General Information
Standard status
Active
Size
1,775 SF
Property subtype
Office
Zoning
General Commercial
Additional Details
Road Access
Yes
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$5,353
Amenities
Central Air
3
Vinyl
Composition Shingle
GENERAL COMMERCIAL
Parking.
Handicap Parking, Lot.
Level
0.00 x 0.00
Paved Road, Open, Level.
Building Details
Year Built
1951
Stories
2
Listing Agency:
Iron Valley Real Estate of Lancaster
(717) 226-8331
Listed By:
Samuel Groff · License #RS323908
(717) 226-8331
Source:
Xome
Added: May 11
Changed: Aug 8
Last Checked: Aug 8 at 7:54AM
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 Iron Valley Real Estate of Lancaster
Investment Insights
Based on property information with market context.
This two-story, 1,775-square-foot building is zoned General Commercial and provides office space on the first floor with a conference room, break room, front desk area, two private offices, and a half bath. The second floor is currently configured as a one-bedroom apartment, with the option to convert it into additional office space if needed. Recent improvements include HVAC and roof updates.
The property offers road frontage along Route 272, supporting convenient visibility from the main roadway. Access and approach are designed around the building’s direct frontage.
For tenants or buyers seeking a flexible professional setup, the first-floor office layout supports administrative and meeting needs, while the second-floor apartment configuration can serve as overflow space or be repurposed to expand office capacity. With documented HVAC and roof improvements, the building offers a practical foundation for continued use as an office and related business facility.
The property offers road frontage along Route 272, supporting convenient visibility from the main roadway. Access and approach are designed around the building’s direct frontage.
For tenants or buyers seeking a flexible professional setup, the first-floor office layout supports administrative and meeting needs, while the second-floor apartment configuration can serve as overflow space or be repurposed to expand office capacity. With documented HVAC and roof improvements, the building offers a practical foundation for continued use as an office and related business facility.
Key Highlights
- 1,775‑SF two‑story building zoned general commercial with office space on the first floor
- First‑floor offices include conference room, break room, front desk area, 2 private offices, and a half bath
- Second floor has a 1‑bedroom apartment and could be converted to additional office space
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
$29,387
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
7.35%
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%
$587,740
$587.7K
Cap Rate 7%
$419,814
$419.8K
Cap Rate 9%
$326,522
$326.5K
Market Conditions
NOI Build-Up for 1,775 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
$45.6K $25.68/SF
− Vacancy
−$6.4K −$3.61/SF
EGI
$39.2K $22.07/SF
− OpEx
−$9.8K −$5.52/SF
NOI
$29.4K $16.56/SF
Area
Lancaster County, PA
Vacancy
14.04%
Lease Rate
$25.68 /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%
$587,740
Cap Rate 7%
$419,814
Cap Rate 9%
$326,522
Alternative Uses
Best Use
Office B
$419.8K
$367.3K – $489.8K
NOI $29,387 @ 7.0% cap · market cap 7.35%
Second Best
Mixed Use
$314.9K
$275.6K – $367.4K
NOI $22,046 @ 7.0% cap · market cap 5.51%
Theoretical Best
Office A
$594.8K
$520.5K – $694.0K
NOI $41,637 @ 7.0% cap · market cap 10.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,004
Businesses Nearby
Explore this area
Business Placement
Demographics for 17522, PA
33,848
Population
13,837
Households
2.4
Avg Household Size
40
Median Age
24%
College-Educated
86%
High-School Grad
43.0 sq mi
ZIP Area
787
Density / Sq Mi
$71,865
Median Household Income
$42,588
Median Earnings
$1,171
Median Rent
$263,600
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Live-work space - Two-story general commercial building with first-floor offices and a convertible second-floor residence.
Where is this live-work space located?
The property is located at 860 N Reading Road Ephrata, PA.
What is the asking price?
The asking price for this property is $399,900.
What are key features of this property?
This property features: 1,775‑SF two‑story building zoned general commercial with office space on the first floor; First‑floor offices include conference room, break room, front desk area, 2 private offices, and a half bath; Second floor has a 1‑bedroom apartment and could be converted to additional office space
