Freestanding Professional Office
For Sale
$635,000
5131 PAYNE Drive, Baton Rouge, LA 70809
Commercial, Baton Rouge, LA
Property Size3,662 SF
Lot Size0.27 Acres
Price / SF$173.40
Days on Market80
Property Features for 5131 PAYNE Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C2
Parking features
Covered
Lot features
Regular
Subdivision
EBR MLS Area 53
Standard status
Active
APN
2005948
Size
3,662 SF
Lot size
0.27 Acres
Taxes and HOA fees
Tax Description
Lot 16 of Essen Plaza Subdivision, East Baton Rouge Parish, State of Louisiana
Legal Description
Lot 16 of Essen Plaza Subdivision, East Baton Rouge Parish, State of Louisiana
Utilities
Water source
Public
Building Details
Year built
1970
Floors in Building
2
Listing Agency:
Berkshire Hathaway HomeServices Preferred, REALTOR
(985) 951-2324
Listed By:
Emily Elwell · License #995701011
(504) 810-7355
Added: Jun 20
Changed: Aug 20
Last Checked: Sep 7 at 5:06PM
MLS# 2563968
Copyright © 2026 New Orleans Metropolitan Association of REALTORS®. 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.
Located at 5131 Payne Drive in Baton Rouge, this freestanding office property provides a two-level configuration suited to professional operations. The interior includes a reception area, conference room, private executive offices, open bullpen space, and additional flexible area on the second floor. The parcel measures 0.265 acres and includes covered parking, public water service, and C2 zoning. Constructed in 1970, the property offers an established commercial setting for office users requiring a combination of enclosed rooms and open workspace.
Access to both I-10 and I-12 is available within minutes. The site is positioned between Baton Rouge General and Our Lady of the Lake Regional Medical Center, placing it within the Essen/Bluebonnet corridor and near major medical destinations.
Access to both I-10 and I-12 is available within minutes. The site is positioned between Baton Rouge General and Our Lady of the Lake Regional Medical Center, placing it within the Essen/Bluebonnet corridor and near major medical destinations.
Key Highlights
- 0.265‑acre parcel at 5131 PAYNE Drive, Baton Rouge, LA 70809
- C2 zoning supports the property’s commercial office classification
- Two‑level layout with reception, conference room, private offices, and open bullpen space
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
$35,026
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
5.52%
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%
$700,520
$700.5K
Cap Rate 7%
$500,371
$500.4K
Cap Rate 9%
$389,178
$389.2K
Market Conditions
NOI Build-Up for 3,662 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
$47.9K $13.08/SF
− Vacancy
−$1.2K −$0.33/SF
EGI
$46.7K $12.75/SF
− OpEx
−$11.7K −$3.19/SF
NOI
$35.0K $9.56/SF
Area
Baton Rouge, LA
Vacancy
2.50%
Lease Rate
$13.08 /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%
$700,520
Cap Rate 7%
$500,371
Cap Rate 9%
$389,178
Alternative Uses
Best Use
Office B
$500.4K
$437.8K – $583.8K
NOI $35,026 @ 7.0% cap · market cap 5.52%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$877.0K
$767.4K – $1.02M
NOI $61,391 @ 7.0% cap · market cap 9.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
3,034
Businesses Nearby
Explore this area
Business Placement
Demographics for 70809, LA
25,302
Population
13,872
Households
1.8
Avg Household Size
40
Median Age
55%
College-Educated
97%
High-School Grad
14.4 sq mi
ZIP Area
1,757
Density / Sq Mi
$81,310
Median Household Income
$55,827
Median Earnings
$1,336
Median Rent
$305,900
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - C2-zoned property includes private offices, conference space, flexible work areas, and covered parking.
Where is this office building located?
The property is located at 5131 PAYNE Drive Baton Rouge, LA.
What is the asking price?
The asking price for this property is $635,000.
What are key features of this property?
This property features: 0.265‑acre parcel at 5131 PAYNE Drive, Baton Rouge, LA 70809; C2 zoning supports the property’s commercial office classification; Two‑level layout with reception, conference room, private offices, and open bullpen space
