Two-Story Office Building For
For Sale
Contact for pricing
2122 E Governors Circle, Houston, TX
Two-story office building with warehouse space and ample parking.
Property Size21,420 SF
Lot Size1.54 Acres
Price / SF$149.70
Days on Market1092
Property Features for 2122 E Governors Circle
General Information
Standard status
Active
Size
21,420 SF
Lot size
1.54 Acres
Property subtype
OFFICE
Listing Agency:
Zann Commercial Brokerage
(281) 280-8088
Listed By:
Jason Kieschnick · License ##512911
(832) 915-1827
Source:
Moodyscre
Added: Sep 13, 2023
Changed: Aug 13
Last Checked: Sep 8 at 11:35AM
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 Zann Commercial Brokerage
Investment Insights
Based on property information with market context.
The subject site is a two-story office building consisting of approximately 19,840 square feet of office space and 1,580 square feet of warehouse space, totaling 21,420 square feet. The property offers 95 parking spaces and monument signage. It provides access to 610, 290, I-10, and I-45. The building can be utilized for general office, medical office, or any other use that could benefit from all this building offers.
Key Highlights
- Excellent access to major highways 610, 290, I‑10, and I‑45.
- Substantial parking with 95 spaces.
- Versatile building suitable for general office, medical office, or other uses.
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
$291,483
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
9.09%
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%
$5,829,660
$5.8M
Cap Rate 7%
$4,164,043
$4.2M
Cap Rate 9%
$3,238,700
$3.2M
Market Conditions
NOI Build-Up for 21,420 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
$539.8K $25.20/SF
− Vacancy
−$54.0K −$2.52/SF
EGI
$485.8K $22.68/SF
− OpEx
−$194.3K −$9.07/SF
NOI
$291.5K $13.61/SF
Area
Houston, TX
Vacancy
10.00%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
40.00%
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%
$5,829,660
Cap Rate 7%
$4,164,043
Cap Rate 9%
$3,238,700
Alternative Uses
Best Use
Healthcare Medical
$4.16M
$3.64M – $4.86M
NOI $291,483 @ 7.0% cap · market cap 9.09%
Second Best
Office B
$3.57M
$3.12M – $4.16M
NOI $249,843 @ 7.0% cap · market cap 7.79%
Theoretical Best
Office A
$5.51M
$4.82M – $6.43M
NOI $385,560 @ 7.0% cap · market cap 12.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,983
Businesses Nearby
Explore this area
Business Placement
Market
Vacancy Rate% for Office in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two-story office building with warehouse space and ample parking.
Where is this office building located?
The property is located at 2122 E Governors Circle Houston, TX.
What is the asking price?
The asking price for this property is $3,206,610.
What are key features of this property?
This property features: Excellent access to major highways 610, 290, I‑10, and I‑45.; Substantial parking with 95 spaces.; Versatile building suitable for general office, medical office, or other uses.
