Downtown Killeen Commercial
For Sale
$250,000
623 S 2nd St, Killeen, TX 76541
High-visibility commercial building ideal for brand-driven business.
Property Size960 SF
Price / SF$260.42
Days on Market112
Property Features for 623 S 2nd St
General Information
Standard status
Active
Size
960 SF
Property subtype
Commercial
Building Details
Year Built
1984
Listing Agency:
Blessed Properties
(833) 427-8925
Listed By:
Patrick Purifoy · License #0550494
(833) 427-8925
Source:
Elliman
Added: Apr 24
Changed: Jul 10
Last Checked: Aug 12 at 9:44AM
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 Blessed Properties
Investment Insights
Based on property information with market context.
Located on a high-exposure corner lot in downtown Killeen, this commercial building offers an opportunity for an owner-user to establish a permanent home for a brand-driven business. The building, with ±960 square feet, was previously used as a car dealership office. The space is suited for creative and client-facing concepts such as a photography studio, podcast or content creation studio, music or recording space, art studio, design firm, boutique salon, or a hybrid creative office. Prominent frontage and corner visibility allow a business to be seen and recognized. The exterior can be branded, and the interior can be curated. Downtown Killeen offers proximity to established businesses, surrounding residential density, and steady drive-by traffic, making this location ideal for appointment-based and brand-centric operations. The site also supports hybrid concepts that combine creative production, office use, and client consultation under one roof. The location is designed for businesses that value presence over size, identity over anonymity, and ownership over rent. The bike score is 51, indicating it is bikeable, and the walk score is 68, indicating it is somewhat walkable.
Key Highlights
- High‑exposure corner lot in downtown Killeen offering prominent frontage and visibility.
- Opportunity for an owner‑user to establish a permanent, branded business location.
- Well‑suited for creative and client‑facing businesses (photography, design, salon, etc.).
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
$12,690
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
5.08%
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%
$253,800
$253.8K
Cap Rate 7%
$181,286
$181.3K
Cap Rate 9%
$141,000
$141.0K
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
$20.7K $21.60/SF
− Vacancy
−$3.8K −$3.97/SF
EGI
$16.9K $17.63/SF
− OpEx
−$4.2K −$4.41/SF
NOI
$12.7K $13.22/SF
Area
Killeen, TX
Vacancy
18.40%
Lease Rate
$21.60 /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%
$253,800
Cap Rate 7%
$181,286
Cap Rate 9%
$141,000
Alternative Uses
Best Use
Office B
$181.3K
$158.6K – $211.5K
NOI $12,690 @ 7.0% cap · market cap 5.08%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$230.6K
$201.8K – $269.0K
NOI $16,141 @ 7.0% cap · market cap 6.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,532
Businesses Nearby
Explore this area
Business Placement
Demographics for 76541, TX
19,641
Population
10,207
Households
1.9
Avg Household Size
32
Median Age
12%
College-Educated
83%
High-School Grad
4.9 sq mi
ZIP Area
4,008
Density / Sq Mi
$36,739
Median Household Income
$27,869
Median Earnings
$858
Median Rent
$97,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Creative space - High-visibility commercial building ideal for brand-driven business.
Where is this creative space located?
The property is located at 623 S 2nd St Killeen, TX.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: High‑exposure corner lot in downtown Killeen offering prominent frontage and visibility.; Opportunity for an owner‑user to establish a permanent, branded business location.; Well‑suited for creative and client‑facing businesses (photography, design, salon, etc.).
