Professional Office Building Near
For Sale
$999,000
15821 E Highway 175, Kemp, TX 75143
Premium office building with high traffic, ideal for various businesses.
Property Size4,920 SF
Lot Size1.00 Acre
Price / SF$203.05
Days on Market552
Property Features for 15821 E Highway 175
General Information
Standard status
Active
Size
4,920 SF
Lot size
1.00 Acre
Taxes and HOA fees
Annual Taxes
$29,817
Listing Agency:
Coldwell Banker American Dream
(903) 887-7055
Listed By:
Buck Gentry · License #0416423
(903) 887-7055
Source:
Exprealty
Added: Feb 4, 2025
Changed: Aug 8
Last Checked: Aug 8 at 1:03PM
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 Coldwell Banker American Dream
Investment Insights
Based on property information with market context.
This professional office building, constructed in 2021, is located on Highway 175 west of Mabank, in close proximity to Cedar Creek Lake. The 4,920-square-foot building is currently leased to two large businesses. The west side of the building features 5 offices, 2 suites, a kitchen, a separate reception area, a work room, an IT room, and storage. The main building includes a large elegant reception area with divided waiting areas, a huge main meeting room, large his and her lavatories, a kitchen, a coffee bar area, and a copy area. The east side has 6 large office suites, 2 of which are currently used as meeting rooms. The property has a concrete parking area with 35 spaces, including 2 handicapped spaces. The heavy traffic count on Highway 175 makes this building suitable for a variety of businesses.
Key Highlights
- Premium professional office building built in 2021.
- Fully leased to two large businesses, providing immediate income.
- Located on high‑traffic Hwy 175, near Cedar Creek Lake.
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
$84,678
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
8.48%
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%
$1,693,560
$1.7M
Cap Rate 7%
$1,209,686
$1.2M
Cap Rate 9%
$940,867
$940.9K
Market Conditions
NOI Build-Up for 4,920 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
$151.1K $30.72/SF
− Vacancy
−$38.2K −$7.77/SF
EGI
$112.9K $22.95/SF
− OpEx
−$28.2K −$5.74/SF
NOI
$84.7K $17.21/SF
Area
Kaufman County, TX
Vacancy
25.30%
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%
$1,693,560
Cap Rate 7%
$1,209,686
Cap Rate 9%
$940,867
Alternative Uses
Best Use
Office B
$1.21M
$1.06M – $1.41M
NOI $84,678 @ 7.0% cap · market cap 8.48%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$61.92M
$54.18M – $72.24M
NOI $4,334,429 @ 7.0% cap · market cap 433.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
26
Businesses Nearby
Explore this area
Business Placement
Demographics for 75143, TX
15,349
Population
7,088
Households
2.2
Avg Household Size
45
Median Age
18%
College-Educated
86%
High-School Grad
181.9 sq mi
ZIP Area
84
Density / Sq Mi
$68,996
Median Household Income
$41,273
Median Earnings
$1,163
Median Rent
$173,200
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 building - Premium office building with high traffic, ideal for various businesses.
Where is this office building located?
The property is located at 15821 E Highway 175 Kemp, TX.
What is the asking price?
The asking price for this property is $999,000.
What are key features of this property?
This property features: Premium professional office building built in 2021.; Fully leased to two large businesses, providing immediate income.; Located on high‑traffic Hwy 175, near Cedar Creek Lake.
