Listing Agency: JLL | Austin Show Phone

Listed By: Bre Brown · License #645848 Show Phone

Source: Moodyscre

Added: Aug 28, 2025 Changed: Sep 6 Last Checked: Sep 18 at 8:29AM

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Investment Insights

Based on property information with market context.

This renovated office suite features recently completed improvements, including steel and glass conference room doors, brick accent columns, and a private executive bathroom. The layout is designed to support professional meetings and day-to-day office use.

The property offers downtown views and is located at 1301 S Capital of Texas Hwy in West Lake Hills, TX.

Key Highlights

• Recently renovated office suite
• Private executive bathroom
• Steel glass conference room doors

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

$55,942

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

4.82%

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%

$1,118,840 $1.1M

Cap Rate 7%

$799,171 $799.2K

Cap Rate 9%

$621,578 $621.6K

Market Conditions

NOI Build-Up for 2,346 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

$98.5K $42.00/SF

− Vacancy

−$23.9K −$10.21/SF

EGI

$74.6K $31.79/SF

− OpEx

−$18.6K −$7.95/SF

NOI

$55.9K $23.85/SF

Area

Travis County, TX

Vacancy

24.30%

Lease Rate

$42.00 /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%

$1,118,840

Cap Rate 7%

$799,171

Cap Rate 9%

$621,578

Alternative Uses

Best Use

Office B

$799.2K

$699.3K – $932.4K (±1% cap)

NOI $55,942 @ 7.0% cap · market cap 4.82%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$980.7K

$858.1K – $1.14M (±1% cap)

NOI $68,648 @ 7.0% cap · market cap 5.91%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Office Units

Suggested Use

Top Pick Auto Parts Store Auto Repair Shop Restaurant Storage Facility Big Box & Wholesale Store Electrical Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

1,882

Businesses Nearby

Explore this area Business Placement

Demographics for 78746, TX

29,106

Population

11,897

Households

2.4

Avg Household Size

41

Median Age

83%

College-Educated

99%

High-School Grad

22.9 sq mi

ZIP Area

1,271

Density / Sq Mi

$183,028

Median Household Income

$92,124

Median Earnings

$2,097

Median Rent

$1,352,500

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this office units located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Office units - Recently renovated office suite with private executive bathroom and steel glass conference room doors.

Where is this office units located?

The property is located at 1301 S Capital of Texas Hwy West Lake Hills, TX.

What is the asking price?

The asking price for this property is $1,161,260.

What are key features of this property?

This property features: Recently renovated office suite; Private executive bathroom; Steel glass conference room doors