Three-Building Office
For Sale
$875,000
896 STATE STREET, Dover, DE 19901
Fully occupied office property with central air, on-site parking, and frontage along State Street.
Property Size3,310 SF
Price / SF$264.35
Days on Market201
Property Features for 896 STATE STREET
General Information
Standard status
Active
Size
3,310 SF
Property subtype
Office
Occupancy
100%
Additional Details
Road Access
Yes
Office Units
3
Taxes and HOA fees
Annual Taxes
$4,540
Amenities
Central Air
3
Parking.
Lot.
200.00 x 170.00
Building Details
Year Built
1981
Buildings
3
Tenancy
Multi
Listing Agency:
Keller Williams Realty Central-Delaware
(302) 562-8405
Listed By:
Elizabeth Johnson · License #RS-0024287
(302) 562-8405
Source:
Xome
Added: Feb 11
Changed: Aug 30
Last Checked: Aug 30 at 3:33PM
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 Keller Williams Realty Central-Delaware
Investment Insights
Based on property information with market context.
This office property comprises three buildings totaling 3,310 square feet, with tenants occupying all three units. The improvements include general office space and a doctor’s office, along with central air. On-site parking is included.
The parcel fronts State Street in Dover, Delaware, providing direct exposure along a major local thoroughfare. The lot measures 200.00 x 170.00 and includes parking and the existing office improvements. Built in 1981, the property offers an established multi-building office configuration with current occupancy across all units.
The parcel fronts State Street in Dover, Delaware, providing direct exposure along a major local thoroughfare. The lot measures 200.00 x 170.00 and includes parking and the existing office improvements. Built in 1981, the property offers an established multi-building office configuration with current occupancy across all units.
Key Highlights
- Three‑building office parcel totaling 3,310 square feet
- Tenants occupy all 3 units
- Includes office space and a doctor’s office
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
$45,645
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
5.22%
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%
$912,900
$912.9K
Cap Rate 7%
$652,071
$652.1K
Cap Rate 9%
$507,167
$507.2K
Market Conditions
NOI Build-Up for 3,310 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
$85.0K $25.68/SF
− Vacancy
−$8.9K −$2.70/SF
EGI
$76.1K $22.98/SF
− OpEx
−$30.4K −$9.19/SF
NOI
$45.6K $13.79/SF
Area
Kent County, DE
Vacancy
10.50%
Lease Rate
$25.68 /SF/Yr
Expense Ratio
40.00%
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%
$912,900
Cap Rate 7%
$652,071
Cap Rate 9%
$507,167
Alternative Uses
Best Use
Healthcare Medical
$652.1K
$570.6K – $760.8K
NOI $45,645 @ 7.0% cap · market cap 5.22%
Second Best
Office B
$642.3K
$562.0K – $749.4K
NOI $44,963 @ 7.0% cap · market cap 5.14%
Theoretical Best
Office A
$833.5K
$729.3K – $972.4K
NOI $58,343 @ 7.0% cap · market cap 6.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
3
Office units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,775
Businesses Nearby
Explore this area
Business Placement
Demographics for 19901, DE
36,839
Population
15,443
Households
2.4
Avg Household Size
34
Median Age
27%
College-Educated
89%
High-School Grad
75.8 sq mi
ZIP Area
486
Density / Sq Mi
$63,891
Median Household Income
$33,069
Median Earnings
$1,353
Median Rent
$258,400
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Fully occupied office property with central air, on-site parking, and frontage along State Street.
Where is this office building located?
The property is located at 896 STATE STREET Dover, DE.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: Three‑building office parcel totaling 3,310 square feet; Tenants occupy all 3 units; Includes office space and a doctor’s office
