Office Building on College
For Sale
Contact for pricing
907 S College Ave, Newark, DE
Office building for sale on busy S. College Avenue.
Property Size2,955 SF
Lot Size0.69 Acres
Price / SF$235.19
Days on Market257
Property Features for 907 S College Ave
General Information
Standard status
Active
Size
2,955 SF
Lot size
0.69 Acres
Property subtype
OFFICE
Properties For Sale
at 907 S College Ave Contact us- Floor
- Bldg
- Size
- 2,955 SF
- Type
- OFFICE
- Availability
- AVAILABLE, Now
- Sublease
- No
907 S College Ave
- Rare opportunity on busy S. College Avenue (Route 896 N). Zoned GB - General Business....
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Listing Agency:
Patterson Woods Commercial Properties
(302) 559-9585
Listed By:
Dan Lesher
(302) 559-9585
Source:
Moodyscre
Added: Nov 25, 2025
Changed: Aug 8
Last Checked: Aug 9 at 7:48AM
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 Patterson Woods Commercial Properties
Investment Insights
Based on property information with market context.
This property, situated on busy S. College Avenue (Route 896 N), presents a rare opportunity. Zoned GB - General Business, the 2/3 acre site features an office/professional building renovated to code in 2005. A DelDot approved entrance is in place, and a sprinkler line is on site. The property, comprising 2955 square feet, is available for sale, lease, lease purchase, or joint venture starting November 1. The location benefits from new development in the area, including two upcoming Wawa locations and a DASH facility.
Key Highlights
- High‑traffic location on S. College Avenue (Route 896 N).
- Zoned GB - General Business, offering versatile usage options.
- DelDot approved entrance.
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
$40,249
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%
$804,980
$805.0K
Cap Rate 7%
$574,986
$575.0K
Cap Rate 9%
$447,211
$447.2K
Market Conditions
NOI Build-Up for 2,955 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
$66.7K $22.56/SF
− Vacancy
−$13.0K −$4.40/SF
EGI
$53.7K $18.16/SF
− OpEx
−$13.4K −$4.54/SF
NOI
$40.2K $13.62/SF
Area
New Castle County, DE
Vacancy
19.50%
Lease Rate
$22.56 /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%
$804,980
Cap Rate 7%
$574,986
Cap Rate 9%
$447,211
Alternative Uses
Best Use
Office B
$575.0K
$503.1K – $670.8K
NOI $40,249 @ 7.0% cap · market cap 5.79%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$706.8K
$618.5K – $824.6K
NOI $49,477 @ 7.0% cap · market cap 7.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
324
Businesses Nearby
Explore this area
Business Placement
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 - Office building for sale on busy S. College Avenue.
Where is this office building located?
The property is located at 907 S College Ave Newark, DE.
What is the asking price?
The asking price for this property is $695,000.
What are key features of this property?
This property features: High‑traffic location on S. College Avenue (Route 896 N).; Zoned GB - General Business, offering versatile usage options.; DelDot approved entrance.
