Government-Leased Office
For Sale
$4,100,000
2525 E US Highway 175, Kaufman, TX 75142
CommercialSale, Kaufman, TX
Property Size14,240 SF
Lot Size2.35 Acres
Price / SF$287.92
Days on Market354
Property Features for 2525 E US Highway 175
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Comm
Parking features
Garage, Open, Assigned
Subdivision
Kaufman Physical Therapy
Directions
From Dallas take US Hwy 175 past Kaufman approximately 1.4 miles pat SH 34 to 2525 Hwy 175 on North side of road, go past property to turn around go back west property on R, (N), No sign.
Standard status
Active
APN
72570
Lot size
2.35 Acres
Taxes and HOA fees
Tax Description
KAUFMAN PHYSCIAL THERAPY ADD BLOCK 1, LOT 1
Tax Annual Amount
45055
Legal Description
KAUFMAN PHYSCIAL THERAPY ADD BLOCK 1, LOT 1
Utilities
Sewer type
Public Sewer
Heating system
Electric (Heating), Central
Cooling system
Central Air, Electric
Building Details
Year built
2003
Floors in Building
1
Number of units
3
Flooring type
Carpet, Laminate
Building materials
Brick
Roof type
Metal
Listing Agency:
RE/MAX Landmark
(972) 524-0689
Listed By:
Frank Roberts · License #0524424
(972) 524-2525
Added: Sep 5, 2025
Changed: Aug 21
Last Checked: Aug 24 at 7:06PM
MLS# 21048254
Copyright © 2026 North Texas Real Estate Information Systems, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This office building was constructed in 2003 with brick exterior walls, metal roofing, carpet and laminate flooring, and central electric heating and cooling. The property occupies 2.347 acres and includes garage, open, and assigned parking areas positioned at the front and rear of the building. Public sewer service is in place.
A government agency occupies the property under a modified gross lease with 5 years remaining. The investment carries a 6.5% cap rate. The building is located at 2525 E US Highway 175 in Kaufman, Texas, providing a highway-addressed office setting within Kaufman County.
A government agency occupies the property under a modified gross lease with 5 years remaining. The investment carries a 6.5% cap rate. The building is located at 2525 E US Highway 175 in Kaufman, Texas, providing a highway-addressed office setting within Kaufman County.
Key Highlights
- 14,240 sf office building constructed in 2003
- Government agency lease with 5 years remaining
- Modified gross lease structure with a 6.5% cap rate
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
$245,083
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
5.98%
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%
$4,901,660
$4.9M
Cap Rate 7%
$3,501,186
$3.5M
Cap Rate 9%
$2,723,144
$2.7M
Market Conditions
NOI Build-Up for 14,240 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
$437.5K $30.72/SF
− Vacancy
−$110.7K −$7.77/SF
EGI
$326.8K $22.95/SF
− OpEx
−$81.7K −$5.74/SF
NOI
$245.1K $17.21/SF
Area
Kaufman County, TX
Vacancy
25.30%
Lease Rate
$30.72 /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%
$4,901,660
Cap Rate 7%
$3,501,186
Cap Rate 9%
$2,723,144
Alternative Uses
Best Use
Office B
$3.50M
$3.06M – $4.08M
NOI $245,083 @ 7.0% cap · market cap 5.98%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$179.22M
$156.81M – $209.09M
NOI $12,545,176 @ 7.0% cap · market cap 305.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
55
Businesses Nearby
Explore this area
Business Placement
Demographics for 75142, TX
21,952
Population
7,699
Households
2.9
Avg Household Size
36
Median Age
14%
College-Educated
78%
High-School Grad
181.2 sq mi
ZIP Area
121
Density / Sq Mi
$78,301
Median Household Income
$40,657
Median Earnings
$1,301
Median Rent
$208,900
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?
Office building - Brick office property with central HVAC, carpet and laminate flooring, and parking at both the front and rear.
Where is this office building located?
The property is located at 2525 E US Highway 175 Kaufman, TX.
What is the asking price?
The asking price for this property is $4,100,000.
What are key features of this property?
This property features: 14,240 sf office building constructed in 2003; Government agency lease with 5 years remaining; Modified gross lease structure with a 6.5% cap rate
