Executive Office Building with
For Sale
$3,900,000
5241 98th Street, Lubbock, TX 79424
COMMERCIAL - Lubbock, TX
Property Size15,436 SF
Lot Size1.95 Acres
Price / SF$252.66
Days on Market33
Property Features for 5241 98th Street
General Information
Property type
Commercial Sale
Property subtype
Office
Parking
78
Parking features
Parking Lot
Lot features
Landscaped
Subdivision
7
Standard status
Active
APN
R325807
Size
15,436 SF
Lot size
1.95 Acres
Taxes and HOA fees
Tax Description
S & T Ins Tr A
Tax Annual Amount
69320
Legal Description
S & T Ins Tr A
Utilities
Sewer type
Public Sewer
Water source
Public
Amenities
reception lobby
executive conference room
training facility
collaborative workspace
kitchen and break areas
enclosed courtyard
Building Details
Year built
2016
Floors in Building
1
Listing Agency:
Kim & Company, REALTORS
(806) 790-7142
Listed By:
Kim Flenniken · License #0448062
(806) 790-7142
Added: Jul 22
Changed: Aug 4
Last Checked: Aug 23 at 8:06PM
MLS# 202610137
Copyright © 2026 Lubbock 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.
Completed in 2016, this office building totals 15,436 square feet and is configured as a corporate headquarters. The space includes more than twenty private offices, four executive offices, a reception lobby, executive conference room, large training facility, open collaborative workspace, and kitchen and break areas. An enclosed courtyard is incorporated into the design, along with a separately accessed office suite. In addition to the primary tenant occupancy, there is a separately leased 1,343-square-foot office suite for added revenue and flexibility.
The property is located on 98th Street in Southwest Lubbock, a commercial growth corridor. The offering includes stated visibility and accessibility supported by traffic counts of approximately 13,000–16,000 vehicles per day on 98th Street, along with more than 41,000 vehicles per day near the Milwaukee Avenue corridor.
The building is described as Class A and maintained for continued headquarters use or long-term investment performance, with the primary lease structure noted as a favorable modified gross arrangement through December 2030.
The property is located on 98th Street in Southwest Lubbock, a commercial growth corridor. The offering includes stated visibility and accessibility supported by traffic counts of approximately 13,000–16,000 vehicles per day on 98th Street, along with more than 41,000 vehicles per day near the Milwaukee Avenue corridor.
The building is described as Class A and maintained for continued headquarters use or long-term investment performance, with the primary lease structure noted as a favorable modified gross arrangement through December 2030.
Key Highlights
- 15,436 SF Class A executive office building built in 2016
- Fully leased through December 2030 to a professional services tenant under a modified gross lease structure
- Separately leased 1,343 SF office suite provides additional income
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
$201,787
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
5.17%
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%
$4,035,740
$4.0M
Cap Rate 7%
$2,882,671
$2.9M
Cap Rate 9%
$2,242,078
$2.2M
Market Conditions
NOI Build-Up for 15,436 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
$324.2K $21.00/SF
− Vacancy
−$55.1K −$3.57/SF
EGI
$269.0K $17.43/SF
− OpEx
−$67.3K −$4.36/SF
NOI
$201.8K $13.07/SF
Area
Lubbock, TX
Vacancy
17.00%
Lease Rate
$21.00 /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%
$4,035,740
Cap Rate 7%
$2,882,671
Cap Rate 9%
$2,242,078
Alternative Uses
Best Use
Office B
$2.88M
$2.52M – $3.36M
NOI $201,787 @ 7.0% cap · market cap 5.17%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.89M
$3.41M – $4.54M
NOI $272,402 @ 7.0% cap · market cap 6.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
275
Businesses Nearby
Explore this area
Business Placement
Demographics for 79424, TX
53,479
Population
22,800
Households
2.3
Avg Household Size
38
Median Age
47%
College-Educated
95%
High-School Grad
41.6 sq mi
ZIP Area
1,286
Density / Sq Mi
$94,703
Median Household Income
$52,417
Median Earnings
$1,151
Median Rent
$279,600
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 - Built in 2016 and fully leased through December 2030, featuring a headquarters-style layout with an enclosed courtyard.
Where is this office building located?
The property is located at 5241 98th Street Lubbock, TX.
What is the asking price?
The asking price for this property is $3,900,000.
What are key features of this property?
This property features: 15,436 SF Class A executive office building built in 2016; Fully leased through December 2030 to a professional services tenant under a modified gross lease structure; Separately leased 1,343 SF office suite provides additional income
