Versatile Commercial Condo in
For Sale
Contact for pricing
204 Rigsbee Ave, Durham, NC 27701
Street-level condo in downtown Durham, suitable for office or retail.
Property Size3,944 SF
Price / SF$367.65
Days on Market735
Property Features for 204 Rigsbee Ave
General Information
Standard status
Active
Size
3,944 SF
Class
C
Property subtype
Office
Zoning
DD-C
Listing Agency:
SVN | Real Estate Associates
(919) 287-2135
Listed By:
Carey Greene · License #NC 266741
Source:
Crexi
Added: Aug 5, 2024
Changed: Aug 8
Last Checked: May 12 at 10:51PM
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 SVN | Real Estate Associates
Investment Insights
Based on property information with market context.
Located at 204 Rigsbee Avenue in downtown Durham, North Carolina, Suite 101 is a commercial condo unit available for sale or lease. The surrounding area is undergoing significant development, with ongoing and planned projects aimed at expanding residential, retail, office, and life science spaces. The 3,944 square-foot street-level unit is currently configured as an open, creative office space. The property features a storefront façade, convenient parking access, and two points of egress. The space is suitable for conversion to retail use, including food and beverage operations. The location offers visibility and customer traffic, situated near restaurants and cafes.
Key Highlights
- Prime downtown Durham location offering excellent visibility and customer traffic.
- Versatile street‑level commercial condo ideal for office, retail, or food and beverage.
- Easy access to parking.
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
$60,911
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
4.20%
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%
$1,218,220
$1.2M
Cap Rate 7%
$870,157
$870.2K
Cap Rate 9%
$676,789
$676.8K
Market Conditions
NOI Build-Up for 3,944 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
$98.4K $24.96/SF
− Vacancy
−$17.2K −$4.37/SF
EGI
$81.2K $20.59/SF
− OpEx
−$20.3K −$5.15/SF
NOI
$60.9K $15.44/SF
Area
Durham, NC
Vacancy
17.50%
Lease Rate
$24.96 /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%
$1,218,220
Cap Rate 7%
$870,157
Cap Rate 9%
$676,789
Alternative Uses
Best Use
Office B
$870.2K
$761.4K – $1.02M
NOI $60,911 @ 7.0% cap · market cap 4.20%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.27M
$1.11M – $1.49M
NOI $89,149 @ 7.0% cap · market cap 6.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,076
Businesses Nearby
Explore this area
Business Placement
Demographics for 27701, NC
25,208
Population
13,409
Households
1.9
Avg Household Size
34
Median Age
50%
College-Educated
85%
High-School Grad
5.2 sq mi
ZIP Area
4,848
Density / Sq Mi
$66,852
Median Household Income
$47,681
Median Earnings
$1,279
Median Rent
$457,600
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?
Creative space - Street-level condo in downtown Durham, suitable for office or retail.
Where is this creative space located?
The property is located at 204 Rigsbee Ave Durham, NC.
What is the asking price?
The asking price for this property is $1,450,000.
What are key features of this property?
This property features: Prime downtown Durham location offering excellent visibility and customer traffic.; Versatile street‑level commercial condo ideal for office, retail, or food and beverage.; Easy access to parking.
