Freestanding Office Building with
For Sale
$395,000
1901 Austin Ave, Waco, TX 76701
Freestanding office with flex bullpen area, kitchen, two restrooms, and a drive-through for convenient access.
Property Size2,520 SF
Days on Market98
Property Features for 1901 Austin Ave
General Information
Standard status
Active
Size
2,520 SF
Class
B
Property subtype
Office
Zoning
O2
Additional Details
Road Access
Yes
Building Details
Building Size
2,520 SF
Year Built
1973
Listed By:
Pat Farrar · License #TX #547422
(254) 749-0613
Source:
Reidpeevey
Added: Jun 2
Changed: Aug 28
Last Checked: Sep 7 at 5:00AM
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 Pat Farrar
Investment Insights
Based on property information with market context.
Freestanding office building at 1901 Austin Ave in Waco, TX, built in 1973. The space is laid out with five spacious offices plus a flex/bullpen area, along with a kitchen and two restrooms. The property also includes a drive-through configuration, previously used as a former credit union facility.
Access is supported by two curb cuts, with ample parking located in the rear. Zoning is listed as O2, which can support office-oriented uses.
This layout can work well for an organization looking for dedicated offices paired with an open flex/bullpen work area, while also benefiting from drive-through functionality and rear parking.
Access is supported by two curb cuts, with ample parking located in the rear. Zoning is listed as O2, which can support office-oriented uses.
This layout can work well for an organization looking for dedicated offices paired with an open flex/bullpen work area, while also benefiting from drive-through functionality and rear parking.
Key Highlights
- Drive‑through feature, previously used as a former credit union
- Five spacious offices plus flex/bullpen area
- Kitchen and two restrooms
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
$35,035
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
8.87%
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%
$700,700
$700.7K
Cap Rate 7%
$500,500
$500.5K
Cap Rate 9%
$389,278
$389.3K
Market Conditions
NOI Build-Up for 2,520 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
$55.9K $22.20/SF
− Vacancy
−$9.2K −$3.66/SF
EGI
$46.7K $18.54/SF
− OpEx
−$11.7K −$4.63/SF
NOI
$35.0K $13.90/SF
Area
Waco, TX
Vacancy
16.50%
Lease Rate
$22.20 /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%
$700,700
Cap Rate 7%
$500,500
Cap Rate 9%
$389,278
Alternative Uses
Best Use
Office B
$500.5K
$437.9K – $583.9K
NOI $35,035 @ 7.0% cap · market cap 8.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$664.8K
$581.7K – $775.7K
NOI $46,539 @ 7.0% cap · market cap 11.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,302
Businesses Nearby
Explore this area
Business Placement
Demographics for 76701, TX
1,674
Population
1,029
Households
1.6
Avg Household Size
29
Median Age
32%
College-Educated
92%
High-School Grad
1.1 sq mi
ZIP Area
1,522
Density / Sq Mi
$24,593
Median Household Income
$21,897
Median Earnings
$1,008
Median Rent
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 - Freestanding office with flex bullpen area, kitchen, two restrooms, and a drive-through for convenient access.
Where is this office building located?
The property is located at 1901 Austin Ave Waco, TX.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: Drive‑through feature, previously used as a former credit union; Five spacious offices plus flex/bullpen area; Kitchen and two restrooms
