Commercially Zoned Live-Work
New
For Sale
$139,000
1116 E State Hwy 276, West Tawakoni, TX 75474
Two-bedroom property with commercial zoning, highway exposure, and flexibility for residential occupancy or office conversion.
Property Size960 SF
Price / SF$144.79
Days on Market3
Property Features for 1116 E State Hwy 276
General Information
Standard status
Active
Size
960 SF
Additional Details
Highway Access
Yes
Building Details
Year Built
1980
Listing Agency:
1st Choice Realty
Listed By:
Jody Crocker · License #0600261
(903) 356-4600
Source:
Yourdavisteam
Added: Sep 10
Last Checked: Sep 12 at 1:00PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of 1st Choice Realty
Investment Insights
Based on property information with market context.
Built in 1980, this 960-square-foot property is currently configured as a two-bedroom, one-bath residence with a spacious living room. The layout can support conversion to office space while retaining the option for residential use, creating a live-work configuration with a practical small-business setting. The property is already zoned commercial by the city.
Located at 1116 E State Hwy 276 in West Tawakoni, the building fronts a highway described as carrying substantial traffic and is surrounded by other commercial buildings. Adjacent businesses include a storage facility, bookkeeping business, and church. A city park borders the backyard, which also has lake views. Nearby recreational features include a swimming area, playground, boat ramp, and Deer Run Golf Course.
Located at 1116 E State Hwy 276 in West Tawakoni, the building fronts a highway described as carrying substantial traffic and is surrounded by other commercial buildings. Adjacent businesses include a storage facility, bookkeeping business, and church. A city park borders the backyard, which also has lake views. Nearby recreational features include a swimming area, playground, boat ramp, and Deer Run Golf Course.
Key Highlights
- 960 square feet with 2 bedrooms and 1 bath
- Already zoned commercial by the city
- Spacious living room adaptable to office use
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
$12,175
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
8.76%
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%
$243,500
$243.5K
Cap Rate 7%
$173,929
$173.9K
Cap Rate 9%
$135,278
$135.3K
Market Conditions
NOI Build-Up for 960 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
$21.1K $21.96/SF
− Vacancy
−$4.8K −$5.05/SF
EGI
$16.2K $16.91/SF
− OpEx
−$4.1K −$4.23/SF
NOI
$12.2K $12.68/SF
Area
Hunt County, TX
Vacancy
23.00%
Lease Rate
$21.96 /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%
$243,500
Cap Rate 7%
$173,929
Cap Rate 9%
$135,278
Alternative Uses
Best Use
Mixed Use
$189.3K
$165.6K – $220.8K
NOI $13,248 @ 7.0% cap · market cap 9.53%
Second Best
Office B
$173.9K
$152.2K – $202.9K
NOI $12,175 @ 7.0% cap · market cap 8.76%
Theoretical Best
Industrial
$953.9K
$834.7K – $1.11M
NOI $66,774 @ 7.0% cap · market cap 48.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
57
Businesses Nearby
Explore this area
Business Placement
Demographics for 75474, TX
16,010
Population
7,115
Households
2.3
Avg Household Size
44
Median Age
17%
College-Educated
82%
High-School Grad
105.3 sq mi
ZIP Area
152
Density / Sq Mi
$66,299
Median Household Income
$35,770
Median Earnings
$1,101
Median Rent
$169,800
Median Home Value
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Live-work space - Two-bedroom property with commercial zoning, highway exposure, and flexibility for residential occupancy or office conversion.
Where is this live-work space located?
The property is located at 1116 E State Hwy 276 West Tawakoni, TX.
What is the asking price?
The asking price for this property is $139,000.
What are key features of this property?
This property features: 960 square feet with 2 bedrooms and 1 bath; Already zoned commercial by the city; Spacious living room adaptable to office use
