Class A Office Building with
For Sale
$4,100,000
2525 E Us Highway 175 Kaufman, Kaufman, TX 75142
Class A office building currently leased to a government agency, with ample front and rear parking.
Property Size102,252 SF
Price / SF$287.92
Days on Market39
Property Features for 2525 E Us Highway 175 Kaufman
General Information
Standard status
Active
Size
102,252 SF
Class
A
Zoning
Comm
Occupancy
100%
Additional Details
Cap Rate
6.5%
Taxes and HOA fees
Annual Taxes
$45,055
Building Details
Building Size
102,252 SF
Year Built
2003
Stories
1
Tenancy
Single
Listing Agency:
OPT
(800) 683-5651
Listed By:
Kris Watts
(800) 683-5651
Source:
Jparhouston
Added: Jul 14
Changed: Aug 17
Last Checked: Aug 21 at 3:52AM
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 OPT
Investment Insights
Based on property information with market context.
This Class A commercial office building is offered for sale as a leased investment. The property is currently occupied by a government agency under a remaining lease term of 5 years, providing ongoing rental income. The lease is structured as a modified gross agreement.
The building offers ample parking at both the front and rear, supporting convenient tenant and visitor access. Located on US Highway 175 in Kaufman, Texas, the property is positioned for straightforward access for daily operations and building use.
The building offers ample parking at both the front and rear, supporting convenient tenant and visitor access. Located on US Highway 175 in Kaufman, Texas, the property is positioned for straightforward access for daily operations and building use.
Key Highlights
- 14,240 SF Class A commercial office building built in 2003
- Currently leased to a government agency with a remaining 5‑year lease term
- Modified gross lease at $17.13 per SF
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
$245,083
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
5.98%
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%
$4,901,660
$4.9M
Cap Rate 7%
$3,501,186
$3.5M
Cap Rate 9%
$2,723,144
$2.7M
Market Conditions
NOI Build-Up for 14,240 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
$437.5K $30.72/SF
− Vacancy
−$110.7K −$7.77/SF
EGI
$326.8K $22.95/SF
− OpEx
−$81.7K −$5.74/SF
NOI
$245.1K $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%
$4,901,660
Cap Rate 7%
$3,501,186
Cap Rate 9%
$2,723,144
Alternative Uses
Best Use
Office B
$3.50M
$3.06M – $4.08M
NOI $245,083 @ 7.0% cap · market cap 5.98%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$179.22M
$156.81M – $209.09M
NOI $12,545,176 @ 7.0% cap · market cap 305.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1
Businesses Nearby
Explore this area
Business Placement
Demographics for 75142, TX
21,952
Population
7,699
Households
2.9
Avg Household Size
36
Median Age
14%
College-Educated
78%
High-School Grad
181.2 sq mi
ZIP Area
121
Density / Sq Mi
$78,301
Median Household Income
$40,657
Median Earnings
$1,301
Median Rent
$208,900
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 - Class A office building currently leased to a government agency, with ample front and rear parking.
Where is this office building located?
The property is located at 2525 E Us Highway 175 Kaufman Kaufman, TX.
What is the asking price?
The asking price for this property is $4,100,000.
What are key features of this property?
This property features: 14,240 SF Class A commercial office building built in 2003; Currently leased to a government agency with a remaining 5‑year lease term; Modified gross lease at $17.13 per SF
