Versatile Industrial Property with
For Sale
$1,100,000
9320 Old Racetrack Rd, Delmar, DE 19940
4.66-acre property with 6,000 sq ft warehouse and expansion potential.
Property Size6,000 SF
Lot Size4.66 Acres
Price / SF$183.33
Days on Market168
Property Features for 9320 Old Racetrack Rd
General Information
Standard status
Active
Size
6,000 SF
Lot size
4.66 Acres
Property subtype
Industrial
Building Details
Year Built
1989
Listing Agency:
NAI Coastal - Salisbury
(443) 935-2277
Listed By:
George Merritt · License #MD #0681070
(443) 935-2277
Source:
Naiglobal
Added: Mar 6
Changed: Jul 6
Last Checked: Aug 21 at 4:59AM
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 NAI Coastal - Salisbury
Investment Insights
Based on property information with market context.
This 4.66-acre property is zoned Light Industrial (LI-2) and includes a 6,000 sq ft warehouse. The warehouse is equipped with four 14'x14' roll-up doors and individual access doors. The current owners are pursuing permits to construct an additional 6,000 sq ft of warehouse space and a further 6,000 sq ft of office space on the property's street frontage. An asphalt driveway and parking lot are in place. The building benefits from new electric service including 3-phase power, a new metal roof, and LED lighting. Approximately 3.5 acres are fenced in with a new asphalt driveway and parking area. The warehouse has a 22' ceiling height and the option for demising. The property is located one mile north of the Maryland border.
Key Highlights
- 4.66‑acre Light Industrial (LI‑2) zoned property offering versatile business opportunities.
- Existing 6,000 sq ft warehouse featuring four 14'x14' roll‑up doors and individual access doors, plus permits being pursued for an additional 12,000 sq ft of warehouse and office space.
- New upgrades include a metal roof, LED lighting, and 3‑phase electric service.
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
$39,841
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
3.62%
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%
$796,820
$796.8K
Cap Rate 7%
$569,157
$569.2K
Cap Rate 9%
$442,678
$442.7K
Market Conditions
NOI Build-Up for 6,000 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
$50.4K $8.40/SF
− Vacancy
−$3.5K −$0.59/SF
EGI
$46.9K $7.81/SF
− OpEx
−$7.0K −$1.17/SF
NOI
$39.8K $6.64/SF
Area
Sussex County, DE
Vacancy
7.00%
Lease Rate
$8.40 /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%
$796,820
Cap Rate 7%
$569,157
Cap Rate 9%
$442,678
Alternative Uses
Best Use
Warehouse
$569.2K
$498.0K – $664.0K
NOI $39,841 @ 7.0% cap · market cap 3.62%
Second Best
Industrial
$504.9K
$441.8K – $589.1K
NOI $35,343 @ 7.0% cap · market cap 3.21%
Theoretical Best
Office A
$1.65M
$1.44M – $1.92M
NOI $115,416 @ 7.0% cap · market cap 10.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
218
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 19940, DE
6,541
Population
2,711
Households
2.4
Avg Household Size
40
Median Age
22%
College-Educated
84%
High-School Grad
41.3 sq mi
ZIP Area
158
Density / Sq Mi
$63,361
Median Household Income
$48,067
Median Earnings
$938
Median Rent
$225,700
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Partners Self Storage — 500 N Pennsylvania Ave, Delmar, DE 19940
Frequently Asked Questions
What type of property is this?
Warehouse - 4.66-acre property with 6,000 sq ft warehouse and expansion potential.
Where is this warehouse located?
The property is located at 9320 Old Racetrack Rd Delmar, DE.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: 4.66‑acre Light Industrial (LI‑2) zoned property offering versatile business opportunities.; Existing 6,000 sq ft warehouse featuring four 14'x14' roll‑up doors and individual access doors, plus permits being pursued for an additional 12,000 sq ft of warehouse and office space.; New upgrades include a metal roof, LED lighting, and 3‑phase electric service.
