I-95 Visible Industrial
For Sale
$5,100,000
3405 Commerce Rd, Richmond, VA 23234
Single-tenant, long-term lease investment opportunity in Richmond, Virginia.
Property Size42,628 SF
Lot Size3.46 Acres
Price / SF$123.20
Days on Market129
Property Features for 3405 Commerce Rd
General Information
Standard status
Active
Size
42,628 SF
Lot size
3.46 Acres
Property subtype
Commercial
Building Details
Building Size
42,628 SF
Year Built
1900
Stories
1
Listing Agency:
One South Commercial LLC
(804) 539-3017
Listed By:
Thomas Rosman · License #0226037201
(804) 539-3017
Source:
Elliman
Added: Apr 24
Changed: Aug 28
Last Checked: Aug 29 at 9:35AM
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 One South Commercial LLC
Investment Insights
Based on property information with market context.
This single-tenant industrial building in Richmond, Virginia, presents a long-term lease investment opportunity. The property is currently leased to Git The Trucking Commercial Tires, a commercial tire installation and road service company. The one-story building, previously used for printing and direct mail, offers approximately 41,396 square feet of conditioned space. It features three loading docks, one drive-in door, and two levelers. Electrical service is 3-phase, 240V, 3000-amp. The 3.46-acre parcel includes approximately 177 parking spaces. The property is highly visible from I-95. Located in a strong industrial market, the property benefits from its location at the intersection of I-95 and I-64, making it a suitable distribution location for the East Coast. The lease structure is Triple Net, with the tenant responsible for real estate taxes, building insurance, utilities, and maintenance.
Key Highlights
- Strong cash flow investment property with market annual increases.
- Long‑term lease in place with Git The Trucking Commercial Tires.
- Highly visible location with I‑95 frontage.
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
$393,105
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
7.71%
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%
$7,862,100
$7.9M
Cap Rate 7%
$5,615,786
$5.6M
Cap Rate 9%
$4,367,833
$4.4M
Market Conditions
NOI Build-Up for 41,396 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
$486.8K $11.76/SF
− Vacancy
−$24.3K −$0.59/SF
EGI
$462.5K $11.17/SF
− OpEx
−$69.4K −$1.68/SF
NOI
$393.1K $9.50/SF
Area
Richmond, VA
Vacancy
5.00%
Lease Rate
$11.76 /SF/Yr
Expense Ratio
15.00%
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%
$7,862,100
Cap Rate 7%
$5,615,786
Cap Rate 9%
$4,367,833
Alternative Uses
Best Use
Warehouse
$5.62M
$4.91M – $6.55M
NOI $393,105 @ 7.0% cap · market cap 7.71%
Second Best
Industrial
$3.75M
$3.28M – $4.37M
NOI $262,465 @ 7.0% cap · market cap 5.15%
Theoretical Best
Office A
$9.56M
$8.37M – $11.16M
NOI $669,471 @ 7.0% cap · market cap 13.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
85
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 23234, VA
46,610
Population
18,167
Households
2.6
Avg Household Size
35
Median Age
20%
College-Educated
80%
High-School Grad
19.1 sq mi
ZIP Area
2,440
Density / Sq Mi
$63,630
Median Household Income
$37,661
Median Earnings
$1,321
Median Rent
$237,300
Median Home Value
Market
Vacancy Rate% for Industrial in Richmond, VA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Warehouse - Single-tenant, long-term lease investment opportunity in Richmond, Virginia.
Where is this warehouse located?
The property is located at 3405 Commerce Rd Richmond, VA.
What is the asking price?
The asking price for this property is $5,100,000.
What are key features of this property?
This property features: Strong cash flow investment property with market annual increases.; Long‑term lease in place with Git The Trucking Commercial Tires.; Highly visible location with I‑95 frontage.
