Pilot Point Commercial
For Sale
$2,400,000
224 W Division St, Pilot Point, TX 76258
Commercial property in growing US-377 corridor, Pilot Point, TX.
Property Size14,770 SF
Price / SF$162.49
Days on Market184
Property Features for 224 W Division St
General Information
Standard status
Active
Size
14,770 SF
Property subtype
Commercial
Building Details
Building Size
14,770 SF
Listing Agency:
Matthews Real Estate Investment Services | Dallas
Listed By:
Cameron Fitzpatrick · License #812688 (TX)
(972) 636-5724
Source:
Matthews
Added: Mar 27
Changed: Sep 11
Last Checked: Sep 26 at 3:32AM
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 Matthews Real Estate Investment Services | Dallas
Investment Insights
Based on property information with market context.
This commercial property is located in downtown Pilot Point, Texas, within the US-377 growth corridor. The property includes flex space, industrial space, retail space, and warehouse space. Recent capital improvements include a new TPO roof installed in March 2024 and all new HVAC installed in 2019. The facility is fully climate controlled. The property was completely remodeled from shell up in 2019. The property has a size of 14770 square feet.
Key Highlights
- Downtown Pilot Point location in US‑377 Growth Corridor
- Recent New TPO roof installed March 2024
- Fully climate controlled facility
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
$75,811
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
3.16%
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%
$1,516,220
$1.5M
Cap Rate 7%
$1,083,014
$1.1M
Cap Rate 9%
$842,344
$842.3K
Market Conditions
NOI Build-Up for 14,770 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
$118.8K $8.04/SF
− Vacancy
−$10.5K −$0.71/SF
EGI
$108.3K $7.33/SF
− OpEx
−$32.5K −$2.20/SF
NOI
$75.8K $5.13/SF
Area
Denton County, TX
Vacancy
8.80%
Lease Rate
$8.04 /SF/Yr
Expense Ratio
30.00%
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%
$1,516,220
Cap Rate 7%
$1,083,014
Cap Rate 9%
$842,344
Alternative Uses
Best Use
Industrial
$1.08M
$947.6K – $1.26M
NOI $75,811 @ 7.0% cap · market cap 3.16%
Second Best
Flex RnD
$1.05M
$922.4K – $1.23M
NOI $73,789 @ 7.0% cap · market cap 3.07%
Theoretical Best
Multifamily LT 5
$206.55M
$180.73M – $240.97M
NOI $14,458,497 @ 7.0% cap · market cap 602.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
203
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 76258, TX
7,409
Population
3,079
Households
2.4
Avg Household Size
41
Median Age
30%
College-Educated
82%
High-School Grad
90.3 sq mi
ZIP Area
82
Density / Sq Mi
$93,661
Median Household Income
$51,382
Median Earnings
$1,224
Median Rent
$320,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in South region
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Frequently Asked Questions
What type of property is this?
Flex space - Commercial property in growing US-377 corridor, Pilot Point, TX.
Where is this flex space located?
The property is located at 224 W Division St Pilot Point, TX.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: Downtown Pilot Point location in US‑377 Growth Corridor; Recent New TPO roof installed March 2024; Fully climate controlled facility
