Fountain Square Commercial
For Sale
$2,250,000
860 Virginia Avenue, Indianapolis, IN 46203
Freestanding building in active commercial area with high visibility.
Property Size9,872 SF
Price / SF$227.92
Days on Market273
Property Features for 860 Virginia Avenue
General Information
Standard status
Active
Size
9,872 SF
Class
C
Property subtype
Retail
Building Details
Building Size
9,872 SF
Year Built
1980
Listing Agency:
(317) 447-4403
Listed By:
Jess Lawhead, SIOR, CCIM, CBI · License #IN #RB14047741
(317) 447-4403
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 21
Last Checked: Aug 21 at 5:00AM
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 Jess Lawhead, SIOR, CCIM, CBI
Investment Insights
Based on property information with market context.
This freestanding building, located in the Fountain Square neighborhood of Indianapolis, offers a flexible layout suitable for a variety of commercial uses, including retail, office, warehouse, or service purposes. The property features multiple entrances, a drive-in door measuring 11 feet, and on-site parking with 12 spaces for customers and staff. It has 173 feet of frontage on Virginia Avenue, ensuring high visibility and easy access. The property also has direct access from both Virginia Avenue and an alley. Situated in one of Indianapolis’ active commercial areas, the location provides immediate access to Interstate 70, offering convenient transportation for customers and employees. The building's size is 9,872 square feet.
Key Highlights
- High Visibility: Prominent frontage on Virginia Avenue.
- Convenient Access: Immediate access to Interstate 70.
- Flexible Space: Suitable for retail, office, warehouse, or service uses.
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
$130,340
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
5.79%
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%
$2,606,800
$2.6M
Cap Rate 7%
$1,862,000
$1.9M
Cap Rate 9%
$1,448,222
$1.4M
Market Conditions
NOI Build-Up for 9,872 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
$213.2K $21.60/SF
− Vacancy
−$39.4K −$4.00/SF
EGI
$173.8K $17.60/SF
− OpEx
−$43.4K −$4.40/SF
NOI
$130.3K $13.20/SF
Area
Indianapolis, IN
Vacancy
18.50%
Lease Rate
$21.60 /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%
$2,606,800
Cap Rate 7%
$1,862,000
Cap Rate 9%
$1,448,222
Alternative Uses
Best Use
Office B
$1.86M
$1.63M – $2.17M
NOI $130,340 @ 7.0% cap · market cap 5.79%
Second Best
Retail
$1.52M
$1.33M – $1.77M
NOI $106,227 @ 7.0% cap · market cap 4.72%
Theoretical Best
Office A
$2.46M
$2.15M – $2.87M
NOI $172,010 @ 7.0% cap · market cap 7.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,266
Businesses Nearby
Explore this area
Business Placement
Demographics for 46203, IN
38,224
Population
18,057
Households
2.1
Avg Household Size
34
Median Age
26%
College-Educated
79%
High-School Grad
13.9 sq mi
ZIP Area
2,750
Density / Sq Mi
$55,375
Median Household Income
$40,620
Median Earnings
$1,022
Median Rent
$155,500
Median Home Value
Market
Vacancy Rate% for Office in Indianapolis, IN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Freestanding building in active commercial area with high visibility.
Where is this retail space located?
The property is located at 860 Virginia Avenue Indianapolis, IN.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: High Visibility: Prominent frontage on Virginia Avenue.; Convenient Access: Immediate access to Interstate 70.; Flexible Space: Suitable for retail, office, warehouse, or service uses.
