Versatile Corner Office
For Sale
$549,900
2501 Franklin Avenue, Waco, TX 76710
Corner office building with reception area, private offices, multiple restrooms, and a secured, fenced parking setup.
Property Size1,416 SF
Days on Market52
Property Features for 2501 Franklin Avenue
General Information
Standard status
Active
Size
1,416 SF
Property subtype
Business
Additional Details
Fenced Yard
Yes
Taxes and HOA fees
Annual Taxes
$4,427
Building Details
Building Size
1,416 SF
Year Built
1950
Listing Agency:
Arise Capital Real Estate
(682) 558-0005
Listed By:
Reyna Reyes · License #0795198
Source:
Whitelabelrealty
Added: Jul 9
Changed: Aug 24
Last Checked: Aug 28 at 3:28PM
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 Arise Capital Real Estate
Investment Insights
Based on property information with market context.
This versatile corner commercial building is offered for sale with owner financing available. The interior layout includes a reception area that opens into a common workspace, two private offices, two restrooms, and an additional waiting area or flex space that can be adapted for a variety of uses. A reinforced concrete room, formerly used as a bank vault, offers secure storage options for records, inventory, or valuables.
The property is situated on a prominent corner lot along Waco’s Franklin Avenue corridor, positioned for strong visibility with high daily traffic counts. Formerly the David Gonzales Farmers Insurance Agency, the building is described as ready for its next chapter with cosmetic updates.
Outside, the fenced and secured parking area is designed for protected vehicle storage and equipment security, with room for additional storage or workshop space as needed.
The property is situated on a prominent corner lot along Waco’s Franklin Avenue corridor, positioned for strong visibility with high daily traffic counts. Formerly the David Gonzales Farmers Insurance Agency, the building is described as ready for its next chapter with cosmetic updates.
Outside, the fenced and secured parking area is designed for protected vehicle storage and equipment security, with room for additional storage or workshop space as needed.
Key Highlights
- Corner commercial building on Waco’s Franklin Avenue corridor
- 1950‑built property with a reception area, common workspace, 2 private offices, and additional waiting/flex space
- Includes 2 restrooms and a reinforced concrete room previously used as a bank vault
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
$19,686
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
3.58%
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%
$393,720
$393.7K
Cap Rate 7%
$281,229
$281.2K
Cap Rate 9%
$218,733
$218.7K
Market Conditions
NOI Build-Up for 1,416 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
$31.4K $22.20/SF
− Vacancy
−$5.2K −$3.66/SF
EGI
$26.2K $18.54/SF
− OpEx
−$6.6K −$4.63/SF
NOI
$19.7K $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%
$393,720
Cap Rate 7%
$281,229
Cap Rate 9%
$218,733
Alternative Uses
Best Use
Office B
$281.2K
$246.1K – $328.1K
NOI $19,686 @ 7.0% cap · market cap 3.58%
Second Best
Healthcare Medical
$216.3K
$189.3K – $252.3K
NOI $15,140 @ 7.0% cap · market cap 2.75%
Theoretical Best
Office A
$373.6K
$326.9K – $435.9K
NOI $26,151 @ 7.0% cap · market cap 4.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
931
Businesses Nearby
Explore this area
Business Placement
Demographics for 76710, TX
24,874
Population
12,391
Households
2
Avg Household Size
38
Median Age
32%
College-Educated
92%
High-School Grad
9.3 sq mi
ZIP Area
2,675
Density / Sq Mi
$53,304
Median Household Income
$36,425
Median Earnings
$1,098
Median Rent
$229,000
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 - Corner office building with reception area, private offices, multiple restrooms, and a secured, fenced parking setup.
Where is this office building located?
The property is located at 2501 Franklin Avenue Waco, TX.
What is the asking price?
The asking price for this property is $549,900.
What are key features of this property?
This property features: Corner commercial building on Waco’s Franklin Avenue corridor; 1950‑built property with a reception area, common workspace, 2 private offices, and additional waiting/flex space; Includes 2 restrooms and a reinforced concrete room previously used as a bank vault
