Office Building with Covered
For Sale
$690,000
408 N Key Avenue, Lampasas, TX 76550
CommercialSale, Lampasas, TX
Property Size2,331 SF
Lot Size0.21 Acres
Price / SF$296.01
Days on Market436
Property Features for 408 N Key Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Parking features
Carport
Security features
Security
Interior features
PullDownAtticStairs
Accessibility
Accessible Approach with Ramp
Subdivision
L S C 1st
Lot features
Less Than Quarter Acre
Directions
Take Key Ave North to Ave D. Building on left.
Standard status
Active
APN
1168
Size
2,331 SF
Lot size
0.21 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
LOT: 4 BLK: 7 ADDN: L S C 1ST
Tax Annual Amount
4459
Legal Description
LOT: 4 BLK: 7 ADDN: L S C 1ST
Utilities
Sewer type
Public Sewer
Heating system
Electric (Heating), Central
Cooling system
Electric, Central Air
Water source
Public
Amenities
covered front porch
reception area
kitchenette
Building Details
Year built
1997
Floors in Building
1
Flooring type
Carpet, Tile
Building materials
StoneVeneer
Roof type
Metal
Listing Agency:
Bear Real Estate Services
(512) 556-9321
Listed By:
Audrey Bear · License #0516346
(512) 525-9321
Added: Jun 19, 2025
Changed: Aug 20
Last Checked: Aug 28 at 8:06AM
MLS# 582706
Copyright © 2026 Central Texas Multiple Listing Service. 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 2331-square-foot office building, constructed in 1997, provides four private offices, a reception area, and a kitchenette. Additional features include a covered front porch, rear carport, pull-down attic stairs, carpet and tile flooring, and an accessible approach with ramp. Stone veneer, a metal roof, central electric heating, and central air conditioning complete the improvements.
Situated on a 0.206-acre corner lot along N Key Avenue in Lampasas, the property includes parking and is served by public water and public sewer. The building is currently leased to an insurance company, offering an existing office configuration for continued professional use.
Situated on a 0.206-acre corner lot along N Key Avenue in Lampasas, the property includes parking and is served by public water and public sewer. The building is currently leased to an insurance company, offering an existing office configuration for continued professional use.
Key Highlights
- 2331‑square‑foot office building on 0.206 acres
- Four offices with reception area and kitchenette
- Covered rear carport and covered front porch
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
$30,814
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
4.47%
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%
$616,280
$616.3K
Cap Rate 7%
$440,200
$440.2K
Cap Rate 9%
$342,378
$342.4K
Market Conditions
NOI Build-Up for 2,331 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
$50.3K $21.60/SF
− Vacancy
−$9.3K −$3.97/SF
EGI
$41.1K $17.63/SF
− OpEx
−$10.3K −$4.41/SF
NOI
$30.8K $13.22/SF
Area
Lampasas County, TX
Vacancy
18.40%
Lease Rate
$21.60 /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%
$616,280
Cap Rate 7%
$440,200
Cap Rate 9%
$342,378
Alternative Uses
Best Use
Office B
$440.2K
$385.2K – $513.6K
NOI $30,814 @ 7.0% cap · market cap 4.47%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$559.9K
$489.9K – $653.2K
NOI $39,192 @ 7.0% cap · market cap 5.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
574
Businesses Nearby
Explore this area
Business Placement
Demographics for 76550, TX
12,840
Population
6,129
Households
2.1
Avg Household Size
44
Median Age
22%
College-Educated
90%
High-School Grad
541.5 sq mi
ZIP Area
24
Density / Sq Mi
$73,697
Median Household Income
$34,970
Median Earnings
$902
Median Rent
$237,600
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?
Office building - The layout includes four offices, a reception area, kitchenette, covered porch, and parking.
Where is this office building located?
The property is located at 408 N Key Avenue Lampasas, TX.
What is the asking price?
The asking price for this property is $690,000.
What are key features of this property?
This property features: 2331‑square‑foot office building on 0.206 acres; Four offices with reception area and kitchenette; Covered rear carport and covered front porch
