Ithaca Investment Opportunity For
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508 W State St, Ithaca, NY 14850
Commercial property with a 5-year NNN lease in place.
Property Size1,507 SF
Price / SF$255.47
Days on Market846
Property Features for 508 W State St
General Information
Standard status
Active
Size
1,507 SF
Property subtype
Mixed Use, Retail
Zoning
CBD-52
Listing Agency:
Warren Real Estate
(607) 351-6155
Listed By:
Laura Fiore · License #NY
Source:
Crexi
Added: Apr 19, 2024
Changed: Aug 8
Last Checked: May 12 at 9:23PM
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 Warren Real Estate
Investment Insights
Based on property information with market context.
This commercial property, situated in Ithaca, presents an investment opportunity with a 5-year, NNN lease already in place. The property is located a half block from the Iron Works Ithaca housing and retail development project and is next door to GIMMEE Coffee, Saigon Kitchen, Maru Ramen, and the State Diner. The surrounding area is experiencing significant growth. Currently, the property operates as Dream Grab & Go convenience store, featuring two bathrooms and a storage area. The interior has been freshly painted, and the property includes updated heating and air conditioning, as well as an updated 200 AMP electrical service and plumbing. The property benefits from a high traffic count due to its location off Route 13 North. The property is zoned B-2C, offering possibilities for redevelopment. The sale includes the land and building. The property size is 1507 square feet.
Key Highlights
- 5‑year NNN lease in place, providing immediate income.
- Prime location near the $18M Iron Works Ithaca development and established businesses (GIMMEE Coffee, Saigon Kitchen, Maru Ramen, State Diner).
- High traffic location off Route 13 North.
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
$19,490
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
5.06%
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%
$389,800
$389.8K
Cap Rate 7%
$278,429
$278.4K
Cap Rate 9%
$216,556
$216.6K
Market Conditions
NOI Build-Up for 1,507 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
$27.1K $18.00/SF
− Vacancy
−$1.1K −$0.76/SF
EGI
$26.0K $17.24/SF
− OpEx
−$6.5K −$4.31/SF
NOI
$19.5K $12.93/SF
Area
Tompkins County, NY
Vacancy
4.20%
Lease Rate
$18.00 /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%
$389,800
Cap Rate 7%
$278,429
Cap Rate 9%
$216,556
Alternative Uses
Best Use
Specialty Retail
$278.4K
$243.6K – $324.8K
NOI $19,490 @ 7.0% cap · market cap 5.06%
Second Best
Retail
$273.7K
$239.5K – $319.4K
NOI $19,161 @ 7.0% cap · market cap 4.98%
Theoretical Best
Office A
$470.3K
$411.5K – $548.6K
NOI $32,918 @ 7.0% cap · market cap 8.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,755
Businesses Nearby
141k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 56%
Shops & Services 21%
Dining 13%
Home Improvements & Furnishings 4%
Wegmans
Groceries
79,838 visits/mo
0.4 miles
Dunkin' Donuts
Dining
16,965 visits/mo
0.2 miles
Sunoco
Shops & Services
9,537 visits/mo
0.3 miles
Citgo
Shops & Services
9,481 visits/mo
0.4 miles
Ithaca Agway & Ace Hardware
Home Improvements & Furnishings
5,967 visits/mo
0.3 miles
Demographics for 14850, NY
69,271
Population
31,772
Households
2.2
Avg Household Size
29
Median Age
72%
College-Educated
96%
High-School Grad
124.8 sq mi
ZIP Area
555
Density / Sq Mi
$69,689
Median Household Income
$36,115
Median Earnings
$1,446
Median Rent
$334,800
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Similar Off Market Nearby
- GreenStar Food Co+op - Dewitt — 215 N Cayuga St, Ithaca, NY 14850
- Wegmans — 500 S Meadow St, Ithaca, NY 14850
Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Commercial property with a 5-year NNN lease in place.
Where is this grocery and convenience store located?
The property is located at 508 W State St Ithaca, NY.
What is the asking price?
The asking price for this property is $385,000.
What are key features of this property?
This property features: 5‑year NNN lease in place, providing immediate income.; Prime location near the $18M Iron Works Ithaca development and established businesses (GIMMEE Coffee, Saigon Kitchen, Maru Ramen, State Diner).; High traffic location off Route 13 North.
