Building Details

Year built 1999

Floors in Building 1

Flooring type Concrete

Roof type Metal

Listing Agency: Compass Rose Realty Show Phone

Listed By: Amanda Milligan · License #00074255 Show Phone

Added: Feb 3, 2022 Changed: Aug 4 Last Checked: Aug 20 at 11:06AM

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MLS# 22003748

Copyright © 2026 Cooperative Arkansas Realtors 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 3,200-square-foot flex property offers a combination of office accommodation and open work or production area. The building includes concrete flooring, overhead doors, and a metal roof, with a designated location for adding a restroom. Built in 1999, the facility is fully fenced for controlled access and practical day-to-day operations.

The property occupies 0.37 acres along Highway 18 in Lake City. Paved surface areas are positioned toward the front of the site, while gravel parking is located behind the building. Its highway setting provides direct access to a primary commercial route through the area.

Key Highlights

• 3,200 SF flex building on 0.37 acres
• Highway 18 frontage in Lake City
• Office area plus open work and floor 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

$19,432

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

6.94%

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%

$388,640 $388.6K

Cap Rate 7%

$277,600 $277.6K

Cap Rate 9%

$215,911 $215.9K

Market Conditions

NOI Build-Up for 3,200 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

$31.9K $9.96/SF

− Vacancy

−$2.0K −$0.62/SF

EGI

$29.9K $9.34/SF

− OpEx

−$10.5K −$3.27/SF

NOI

$19.4K $6.07/SF

Area

Craighead County, AR

Vacancy

6.20%

Lease Rate

$9.96 /SF/Yr

Expense Ratio

35.00%

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%

$388,640

Cap Rate 7%

$277,600

Cap Rate 9%

$215,911

Alternative Uses

Best Use

Office B

$427.2K

$373.8K – $498.4K (±1% cap)

NOI $29,906 @ 7.0% cap · market cap 10.68%

Second Best

Flex RnD

$277.6K

$242.9K – $323.9K (±1% cap)

NOI $19,432 @ 7.0% cap · market cap 6.94%

Theoretical Best

Office A

$560.2K

$490.2K – $653.6K (±1% cap)

NOI $39,217 @ 7.0% cap · market cap 14.01%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Flex space

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

112

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 72437, AR

3,486

Population

1,533

Households

2.3

Avg Household Size

38

Median Age

18%

College-Educated

91%

High-School Grad

104.9 sq mi

ZIP Area

33

Density / Sq Mi

$58,177

Median Household Income

$34,030

Median Earnings

$827

Median Rent

$141,400

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

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What type of property is this? Where is this flex space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - Fenced commercial building combines office accommodation with open work area and paved and gravel parking surfaces.

Where is this flex space located?

The property is located at 1004 A Hwy 18 Lake City, AR.

What is the asking price?

The asking price for this property is $279,900.

What are key features of this property?

This property features: 3,200 SF flex building on 0.37 acres; Highway 18 frontage in Lake City; Office area plus open work and floor space