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: Sep 5 Last Checked: Oct 4 at 11:06PM

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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 combines an office area with substantial open work space. The building includes concrete flooring, overhead doors, a metal roof, and full fencing. A designated area is available for restroom installation.

Positioned along Highway 18 at 1004 A Hwy 18 in Lake City, the property has paved surface area at the front and gravel parking behind the building. Constructed in 1999, the improvements offer a practical configuration for commercial or industrial operations requiring office support, enclosed work space, overhead access, and secured outdoor areas.

Key Highlights

• 3,200‑square‑foot flex building on 0.37 acres
• Office area plus open work and floor space
• Overhead doors with full fencing

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

Flex RnD

$277.6K

$242.9K – $323.9K (±1% cap)

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

Second Best

Industrial

$182.7K

$159.9K – $213.1K (±1% cap)

NOI $12,788 @ 7.0% cap · market cap 4.57%

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

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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 Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 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 - Highway-facing commercial building with office space, concrete work areas, and separate 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‑square‑foot flex building on 0.37 acres; Office area plus open work and floor space; Overhead doors with full fencing