Former Car Dealership on
For Sale
$3,400,000
940 Babbitt Road, Euclid, OH 44123
27,192 SF former car dealership on 5.6 acres for sale.
Property Size27,192 SF
Lot Size5.60 Acres
Price / SF$125.04
Days on Market147
Property Features for 940 Babbitt Road
General Information
Standard status
Active
Size
27,192 SF
Lot size
5.60 Acres
Property subtype
Retail
Listing Agency:
CBRE | Cleveland
(216) 658-6120
Listed By:
Joseph Khouri · License #SAL.2015001299
(216) 658-6120
Source:
Cbre
Added: Mar 25
Changed: Jul 10
Last Checked: Aug 17 at 7:36PM
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 CBRE | Cleveland
Investment Insights
Based on property information with market context.
This 27,192 square foot property on 5.6 acres is a former car dealership. The building features concrete block knee-walls, concrete block fire walls, square cut concrete block exterior walls, and steel stud and glass split face block curtain walls in the showroom and general office areas. The foundation consists of continuous reinforced concrete trench footers, and the framing includes steel columns and girders. The showroom and office areas have an approximate clear ceiling height of 10 feet, while other areas have heights between 10 and 12 feet with finished ceilings. Exterior walls are constructed with metal panel facia and storefront, painted square cut concrete block, split face block, and aluminum framed thermopane glass curtain walls. The roof structure is a standing seam painted steel roof with a metal panel cover. The service area is heated by a mezzanine-mounted gas-fired forced air furnace with a make-up air unit, supplemented by suspended gas-fired radiant units. The showroom and general office area are heated by a mezzanine-mounted gas-fired forced air furnace with two air handling units and three exterior cooling condensers. The property is zoned U4 Retail and Services and has approximately 800 feet of frontage along Babbitt Road and 530 feet along Lakeland. The location has high traffic counts, with 106,839 vehicles per day on Route 2 and 9,806 vehicles per day on Babbitt Road. The site is located across from a new 600,000+ square foot Amazon distribution center and Lincoln Electric, at the gateway to the Euclid industrial market, which has a total of 12.2 million square feet with a 1.8% vacancy rate. The surrounding submarket is densely populated with 77,969 residents within a 3-mile radius and a daytime population of 73,700.
Key Highlights
- High Traffic Counts: See over 106,000 vehicles per day on Route 2.
- Strategic Location: Located across from the new Amazon distribution center and Lincoln Electric.
- High Visibility: Highway visible with frontage along Babbitt and Lakeland.
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
$259,820
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
7.64%
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%
$5,196,400
$5.2M
Cap Rate 7%
$3,711,714
$3.7M
Cap Rate 9%
$2,886,889
$2.9M
Market Conditions
NOI Build-Up for 27,192 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
$407.9K $15.00/SF
− Vacancy
−$36.7K −$1.35/SF
EGI
$371.2K $13.65/SF
− OpEx
−$111.4K −$4.10/SF
NOI
$259.8K $9.56/SF
Area
Cuyahoga County, OH
Vacancy
9.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
30.00%
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%
$5,196,400
Cap Rate 7%
$3,711,714
Cap Rate 9%
$2,886,889
Alternative Uses
Best Use
Industrial
$17.94M
$15.70M – $20.93M
NOI $1,255,980 @ 7.0% cap · market cap 36.94%
Second Best
Retail
$3.71M
$3.25M – $4.33M
NOI $259,820 @ 7.0% cap · market cap 7.64%
Theoretical Best
Warehouse
$21.79M
$19.06M – $25.42M
NOI $1,525,119 @ 7.0% cap · market cap 44.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
504
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 44123, OH
17,620
Population
9,176
Households
1.9
Avg Household Size
39
Median Age
23%
College-Educated
90%
High-School Grad
2.5 sq mi
ZIP Area
7,048
Density / Sq Mi
$54,979
Median Household Income
$39,047
Median Earnings
$1,036
Median Rent
$103,400
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- U-Haul Neighborhood Dealer — 1084 E 222nd St Bay D, Euclid, OH 44117
Frequently Asked Questions
What type of property is this?
Automotive property - 27,192 SF former car dealership on 5.6 acres for sale.
Where is this automotive property located?
The property is located at 940 Babbitt Road Euclid, OH.
What is the asking price?
The asking price for this property is $3,400,000.
What are key features of this property?
This property features: High Traffic Counts: See over 106,000 vehicles per day on Route 2.; Strategic Location: Located across from the new Amazon distribution center and Lincoln Electric.; High Visibility: Highway visible with frontage along Babbitt and Lakeland.
