Office Property with Rental
For Sale
$2,200,000
121 Cut Off, Port Aransas, TX 78373
Multi-use commercial asset with leased office space, wellness improvements, rental suites, and an on-site pool.
Property Size6,169 SF
Price / SF$356.62
Days on Market264
Property Features for 121 Cut Off
General Information
Standard status
Active
Size
6,169 SF
Property subtype
Commercial
Building Details
Year Built
1979
Listing Agency:
RE/MAX Coastal Living
Listed By:
Marcus Starkey
(210) 824-7878
Source:
Phyllisbrowning
Added: Nov 21, 2025
Changed: Aug 12
Last Checked: Aug 12 at 6:00AM
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 RE/MAX Coastal Living
Investment Insights
Based on property information with market context.
The property includes a 4,489-square-foot main building configured with 2,232 square feet of office space, a full kitchen, 1,637 square feet of wellness spa and boutique area, an on-site laundry facility, and two storage rooms. The office component is leased to Stewart Title under a five-year net lease. A 620-square-foot one-bedroom apartment with a fenced yard occupies the north end of the building, while impact windows, Hardi board construction, and a roof replaced in December 2017 add to the physical profile.
Four studio suites constructed in 2019 are positioned behind the main building and are used as vacation rentals. The site also features an 11 x 30 saltwater swimming pool and a 750-square-foot covered rooftop deck with ship channel views. Located at 121 Cut Off in Port Aransas, the property encompasses 0.665 acres, or 28,974 square feet, and is identified as being in the X flood zone with elevation over 13 feet.
Four studio suites constructed in 2019 are positioned behind the main building and are used as vacation rentals. The site also features an 11 x 30 saltwater swimming pool and a 750-square-foot covered rooftop deck with ship channel views. Located at 121 Cut Off in Port Aransas, the property encompasses 0.665 acres, or 28,974 square feet, and is identified as being in the X flood zone with elevation over 13 feet.
Key Highlights
- 2,232 SF of office space leased to Stewart Title on a five‑year net lease
- 1,637 SF wellness spa and boutique area available for owner use or leasing
- Four studio suites built in 2019 and currently used as vacation rentals
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
$103,189
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
4.69%
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%
$2,063,780
$2.1M
Cap Rate 7%
$1,474,129
$1.5M
Cap Rate 9%
$1,146,544
$1.1M
Market Conditions
NOI Build-Up for 6,169 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
$189.5K $30.72/SF
− Vacancy
−$51.9K −$8.42/SF
EGI
$137.6K $22.30/SF
− OpEx
−$34.4K −$5.58/SF
NOI
$103.2K $16.73/SF
Area
Nueces County, TX
Vacancy
27.40%
Lease Rate
$30.72 /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%
$2,063,780
Cap Rate 7%
$1,474,129
Cap Rate 9%
$1,146,544
Alternative Uses
Best Use
Office B
$1.47M
$1.29M – $1.72M
NOI $103,189 @ 7.0% cap · market cap 4.69%
Second Best
Apartment 5plus
$474.7K
$415.3K – $553.8K
NOI $33,226 @ 7.0% cap · market cap 1.51%
Theoretical Best
Warehouse
$6.38M
$5.58M – $7.45M
NOI $446,784 @ 7.0% cap · market cap 20.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
629
Businesses Nearby
Explore this area
Business Placement
Demographics for 78373, TX
3,134
Population
5,614
Households
0.6
Avg Household Size
56
Median Age
38%
College-Educated
95%
High-School Grad
18.8 sq mi
ZIP Area
167
Density / Sq Mi
$90,000
Median Household Income
$52,353
Median Earnings
$2,226
Median Rent
$518,500
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 - Multi-use commercial asset with leased office space, wellness improvements, rental suites, and an on-site pool.
Where is this office units located?
The property is located at 121 Cut Off Port Aransas, TX.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: 2,232 SF of office space leased to Stewart Title on a five‑year net lease; 1,637 SF wellness spa and boutique area available for owner use or leasing; Four studio suites built in 2019 and currently used as vacation rentals
