C-1 Office
For Sale
$391,500
5647 KPE Way Option 2, Tyler, TX 75703
Commercial Sale, Tyler, TX
Property Size1,740 SF
Lot Size1.89 Acres
Price / SF$225
Days on Market223
Property Features for 5647 KPE Way Option 2
General Information
Property type
Commercial Sale
Property subtype
Other
Property condition
Under Construction
Lot features
Inside City Limits
Directions
From the intersection of WSW Loop 323 and Old Jacksonville Hwy, head south on Old Jacksonville Hwy. In approx. 1.14 miles, right right onto Kpe Way. Property will be just ahead in about 400 feet.
Standard status
Active
Size
1,740 SF
Lot size
1.89 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
WEST VILLAGE NORTH U-1 BLOCK 1662 LOT 1C.1
Legal Description
WEST VILLAGE NORTH U-1 BLOCK 1662 LOT 1C.1
Utilities
Sewer type
Public Sewer
Water source
Public
Building Details
Year built
2026
Building materials
Stucco
Listing Agency:
Drake Real Estate & Investments
(903) 581-3737
Listed By:
Matthew Marshall · License #75703
(903) 443-5894
Added: Jan 14
Changed: Aug 20
Last Checked: Aug 25 at 6:06AM
MLS# 26000665
Copyright © 2026 Greater Tyler 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.
Option 2 presents a 1,740-square-foot office unit within a two-building commercial development in Tyler. The property is under construction and is scheduled for delivery in Summer 2026 in shell condition, allowing the interior buildout to be completed after delivery. Stucco is specified for the construction, with public water and public sewer serving the property.
The 1.887-acre site includes 99 total parking spaces. Traffic volume is reported at 34,726 VPD based on TxDOT 2024 counts. The property carries C-1 zoning and is identified as a freestanding office and retail development.
The 1.887-acre site includes 99 total parking spaces. Traffic volume is reported at 34,726 VPD based on TxDOT 2024 counts. The property carries C-1 zoning and is identified as a freestanding office and retail development.
Key Highlights
- 1,740 SF office unit offered as Option 2
- Scheduled for Summer 2026 delivery in shell condition
- C‑1 zoning
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
$21,014
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
5.37%
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%
$420,280
$420.3K
Cap Rate 7%
$300,200
$300.2K
Cap Rate 9%
$233,489
$233.5K
Market Conditions
NOI Build-Up for 1,740 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
$29.6K $17.04/SF
− Vacancy
−$1.6K −$0.94/SF
EGI
$28.0K $16.10/SF
− OpEx
−$7.0K −$4.03/SF
NOI
$21.0K $12.08/SF
Area
Tyler, TX
Vacancy
5.50%
Lease Rate
$17.04 /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%
$420,280
Cap Rate 7%
$300,200
Cap Rate 9%
$233,489
Alternative Uses
Best Use
Office B
$300.2K
$262.7K – $350.2K
NOI $21,014 @ 7.0% cap · market cap 5.37%
Second Best
Retail
$289.6K
$253.4K – $337.9K
NOI $20,272 @ 7.0% cap · market cap 5.18%
Theoretical Best
Office A
$388.4K
$339.8K – $453.1K
NOI $27,185 @ 7.0% cap · market cap 6.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
34,726 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
283
Businesses Nearby
Explore this area
Business Placement
Demographics for 75703, TX
44,428
Population
20,045
Households
2.2
Avg Household Size
39
Median Age
43%
College-Educated
96%
High-School Grad
55.1 sq mi
ZIP Area
806
Density / Sq Mi
$76,347
Median Household Income
$45,301
Median Earnings
$1,262
Median Rent
$310,500
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 units - Office unit scheduled for shell delivery with public water, public sewer, and C-1 zoning.
Where is this office units located?
The property is located at 5647 KPE Way Option 2 Tyler, TX.
What is the asking price?
The asking price for this property is $391,500.
What are key features of this property?
This property features: 1,740 SF office unit offered as Option 2; Scheduled for Summer 2026 delivery in shell condition; C‑1 zoning
