Two-Level Office
For Sale
$1,625,000
6205 Raeford Road, Fayetteville, NC 28304
Two-level office building with ample parking and leased NNN structure, including 21 offices and conference rooms.
Property Size7,152 SF
Price / SF$227.21
Days on Market552
Property Features for 6205 Raeford Road
General Information
Standard status
Active
Size
7,152 SF
Property subtype
Office
Amenities
3
LC - Limited Commercial
40 Parking Spaces.
Level
Clear lot, Level.
Building Details
Year Built
1985
Listing Agency:
FRANKLIN JOHNSON COMMERCIAL REAL ESTATE
(910) 818-8400
Listed By:
FRANKLIN JOHNSON · License #146789
(910) 818-8400
Source:
Xome
Added: Feb 17, 2025
Changed: Aug 23
Last Checked: Aug 22 at 3:00PM
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 FRANKLIN JOHNSON COMMERCIAL REAL ESTATE
Investment Insights
Based on property information with market context.
This must-see office building includes a basement level and first floor. The first floor is approximately 5,152 +/- square feet and the basement level is approximately 2,000 +/- square feet. Interior improvements include 21 offices, two conference rooms, two restrooms, and a kitchen/break room.
The property is located on heavily traveled Raeford Road with easy in-and-out access. It offers ample parking with 40 spaces and is positioned about 1/2 mile south of the Skibo Road and Raeford Road intersection.
The building is held under an NNN lease structure and is currently leased at $8,800 per month. The lease expires 1/31/2031 and there are two 5-year options remaining. Please contact the listing agent for further information.
The property is located on heavily traveled Raeford Road with easy in-and-out access. It offers ample parking with 40 spaces and is positioned about 1/2 mile south of the Skibo Road and Raeford Road intersection.
The building is held under an NNN lease structure and is currently leased at $8,800 per month. The lease expires 1/31/2031 and there are two 5-year options remaining. Please contact the listing agent for further information.
Key Highlights
- Two‑level office building built in 1985 on heavily traveled Raeford Road with easy in and out access
- First floor approx. 5,152+/- SF and basement level approx. 2,000+/- SF
- Layout includes 21 offices, 2 conference rooms, 2 restrooms, and a kitchen/break room
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
$87,431
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
5.38%
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%
$1,748,620
$1.7M
Cap Rate 7%
$1,249,014
$1.2M
Cap Rate 9%
$971,456
$971.5K
Market Conditions
NOI Build-Up for 7,152 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
$145.9K $20.40/SF
− Vacancy
−$29.3K −$4.10/SF
EGI
$116.6K $16.30/SF
− OpEx
−$29.1K −$4.07/SF
NOI
$87.4K $12.22/SF
Area
Fayetteville, NC
Vacancy
20.10%
Lease Rate
$20.40 /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%
$1,748,620
Cap Rate 7%
$1,249,014
Cap Rate 9%
$971,456
Alternative Uses
Best Use
Office B
$1.25M
$1.09M – $1.46M
NOI $87,431 @ 7.0% cap · market cap 5.38%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.57M
$1.37M – $1.83M
NOI $109,717 @ 7.0% cap · market cap 6.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
328
Businesses Nearby
Explore this area
Business Placement
Demographics for 28304, NC
37,120
Population
16,424
Households
2.3
Avg Household Size
37
Median Age
25%
College-Educated
92%
High-School Grad
17.4 sq mi
ZIP Area
2,133
Density / Sq Mi
$57,867
Median Household Income
$35,907
Median Earnings
$1,218
Median Rent
$154,300
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 - Two-level office building with ample parking and leased NNN structure, including 21 offices and conference rooms.
Where is this office building located?
The property is located at 6205 Raeford Road Fayetteville, NC.
What is the asking price?
The asking price for this property is $1,625,000.
What are key features of this property?
This property features: Two‑level office building built in 1985 on heavily traveled Raeford Road with easy in and out access; First floor approx. 5,152+/- SF and basement level approx. 2,000+/- SF; Layout includes 21 offices, 2 conference rooms, 2 restrooms, and a kitchen/break room
