Renovated Floor-Through Office
For Sale
$4,880,000
866 2nd Avenue New York, Manhattan, NY 10017
Commercial Sale, New York (Manhattan), NY
Property Size6,450 SF
Lot Size0.15 Acres
Price / SF$756.59
Days on Market157
Property Features for 866 2nd Avenue New York
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
C1-9
Directions
Google map
Standard status
Active
APN
1339-1016
Lot size
0.15 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
82163
Utilities
Sewer type
Public Sewer
Heating system
Electric (Heating)
Cooling system
Electric
Water source
Public
Building Details
Year built
1970
Listing Agency:
B Square Realty
(718) 939-8388
Listed By:
Li Li
(646) 889-9988
Added: Mar 17
Changed: Aug 19
Last Checked: Aug 20 at 12:06PM
MLS# 972725
Copyright © 2026 OneKey MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This floor-through office condominium at 866 2nd Avenue has been newly renovated with an open layout and large windows that provide natural light throughout the workspace. Direct elevator access supports convenient daily entry, while the condominium format may accommodate an owner-user office operation.
The property is located in Midtown East, two blocks from Grand Central Station and near major transportation hubs, the United Nations, and several consulates within the building. A nearby park adds access to outdoor space. The building was constructed in 1970 and the property is served by public water and public sewer, with electric heating and cooling. C1-9 zoning is identified for the property.
The property is located in Midtown East, two blocks from Grand Central Station and near major transportation hubs, the United Nations, and several consulates within the building. A nearby park adds access to outdoor space. The building was constructed in 1970 and the property is served by public water and public sewer, with electric heating and cooling. C1-9 zoning is identified for the property.
Key Highlights
- Newly renovated floor‑through office condominium
- Open layout with large windows and abundant natural light
- Direct elevator access to the office unit
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
$201,967
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
4.14%
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%
$4,039,340
$4.0M
Cap Rate 7%
$2,885,243
$2.9M
Cap Rate 9%
$2,244,078
$2.2M
Market Conditions
NOI Build-Up for 6,450 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
$332.0K $51.48/SF
− Vacancy
−$62.8K −$9.73/SF
EGI
$269.3K $41.75/SF
− OpEx
−$67.3K −$10.44/SF
NOI
$202.0K $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%
$4,039,340
Cap Rate 7%
$2,885,243
Cap Rate 9%
$2,244,078
Alternative Uses
Best Use
Office B
$2.89M
$2.52M – $3.37M
NOI $201,967 @ 7.0% cap · market cap 4.14%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$16.05M
$14.05M – $18.73M
NOI $1,123,848 @ 7.0% cap · market cap 23.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
58,096
Businesses Nearby
Explore this area
Business Placement
Demographics for 10017, NY
17,401
Population
12,866
Households
1.4
Avg Household Size
38
Median Age
85%
College-Educated
97%
High-School Grad
0.3 sq mi
ZIP Area
58,003
Density / Sq Mi
$132,518
Median Household Income
$94,214
Median Earnings
$2,980
Median Rent
$808,200
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?
Office units - Open-plan workspace with large windows, direct elevator access, and proximity to Grand Central Station.
Where is this office units located?
The property is located at 866 2nd Avenue New York Manhattan, NY.
What is the asking price?
The asking price for this property is $4,880,000.
What are key features of this property?
This property features: Newly renovated floor‑through office condominium; Open layout with large windows and abundant natural light; Direct elevator access to the office unit
