Professional Office Building and
For Sale
Contact for pricing
4000 West University Dr, Denton, TX 76207
Existing professional office building suited for construction or equipment rental and sales use, with future development potential on-site.
Property Size3,747 SF
Price / SF$373.63
Days on Market545
Property Features for 4000 West University Dr
General Information
Standard status
Active
Size
3,747 SF
Property subtype
OFFICE
Listing Agency:
Stag Commercial
(940) 400-7824
Listed By:
John Withers · License #557920
(940) 390-6235
Source:
Moodyscre
Added: Mar 22, 2025
Changed: Sep 10
Last Checked: Sep 16 at 4:41PM
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 Stag Commercial
Investment Insights
Based on property information with market context.
This offering includes an existing professional office building along with the surrounding land. The current building layout supports office use and is described as well-suited for a construction office or an equipment rental and sales office.
The property is located at 4000 West University Dr in Denton, Texas, and is positioned as a site for continued growth and development. The seller’s remarks indicate suitability for future development including professional office, medical, or residential uses. Prospective buyers can evaluate the existing improvements alongside the development opportunity the site presents.
The property is located at 4000 West University Dr in Denton, Texas, and is positioned as a site for continued growth and development. The seller’s remarks indicate suitability for future development including professional office, medical, or residential uses. Prospective buyers can evaluate the existing improvements alongside the development opportunity the site presents.
Key Highlights
- Existing professional office building suited for construction office and equipment rental/sales office use
- On‑site building is described as ideal for construction office or equipment rental and sales office
- Property is identified as a future development site for professional office, medical, or residential development
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
$58,804
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
4.20%
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%
$1,176,080
$1.2M
Cap Rate 7%
$840,057
$840.1K
Cap Rate 9%
$653,378
$653.4K
Market Conditions
NOI Build-Up for 3,747 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
$101.2K $27.00/SF
− Vacancy
−$22.8K −$6.08/SF
EGI
$78.4K $20.93/SF
− OpEx
−$19.6K −$5.23/SF
NOI
$58.8K $15.69/SF
Area
Denton, TX
Vacancy
22.50%
Lease Rate
$27.00 /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%
$1,176,080
Cap Rate 7%
$840,057
Cap Rate 9%
$653,378
Alternative Uses
Best Use
Office B
$840.1K
$735.1K – $980.1K
NOI $58,804 @ 7.0% cap · market cap 4.20%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.17M
$1.02M – $1.37M
NOI $81,948 @ 7.0% cap · market cap 5.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
176
Businesses Nearby
Explore this area
Business Placement
Demographics for 76207, TX
16,097
Population
7,657
Households
2.1
Avg Household Size
41
Median Age
45%
College-Educated
93%
High-School Grad
40.3 sq mi
ZIP Area
399
Density / Sq Mi
$91,026
Median Household Income
$41,830
Median Earnings
$1,654
Median Rent
$361,400
Median Home Value
Check the figures for this property
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office building - Existing professional office building suited for construction or equipment rental and sales use, with future development potential on-site.
Where is this office building located?
The property is located at 4000 West University Dr Denton, TX.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Existing professional office building suited for construction office and equipment rental/sales office use; On‑site building is described as ideal for construction office or equipment rental and sales office; Property is identified as a future development site for professional office, medical, or residential development
