Tenant-Occupied Medical Office
For Sale
$1,423,730
5920 W William Cannon Dr, Austin, TX 78749
Two ground-level medical office units are both occupied under a single lease.
Property Size3,698 SF
Days on Market52
Property Features for 5920 W William Cannon Dr
General Information
Standard status
Active
Size
3,698 SF
Property subtype
Office
Zoning
LO-NP, LR-NP
Occupancy
100%
Building Details
Building Size
3,698 SF
Year Built
2002
Tenancy
Single
Listing Agency:
The Novy Company
Listed By:
Brian Novy
Source:
Commercialcafe
Added: Jul 25
Changed: Sep 4
Last Checked: Sep 13 at 5:21AM
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 The Novy Company
Investment Insights
Based on property information with market context.
This tenant-occupied medical office duplex includes two units that are leased together under one lease to a single medical tenant. Both units provide ground-level access, supporting customer-facing operations and businesses that need convenient accessibility.
The property is zoned for commercial use under LO-NP and LR-NP. This zoning supports medical, professional office, wellness, and service-based uses.
With two separate units on-site, the layout can accommodate an owner-occupant scenario or provide flexibility for a buyer looking to acquire a currently leased healthcare-focused property.
The property is zoned for commercial use under LO-NP and LR-NP. This zoning supports medical, professional office, wellness, and service-based uses.
With two separate units on-site, the layout can accommodate an owner-occupant scenario or provide flexibility for a buyer looking to acquire a currently leased healthcare-focused property.
Key Highlights
- Two ground‑level medical office units, both occupied by a single medical tenant under one lease.
- Ground‑level access supports customer‑facing operations and ADA‑compliant business use.
- Commercial zoning (LO‑NP, LR‑NP) suitable for medical, professional office, wellness, or service‑based businesses.
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
$75,331
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
5.29%
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%
$1,506,620
$1.5M
Cap Rate 7%
$1,076,157
$1.1M
Cap Rate 9%
$837,011
$837.0K
Market Conditions
NOI Build-Up for 3,698 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
$132.7K $35.88/SF
− Vacancy
−$32.2K −$8.72/SF
EGI
$100.4K $27.16/SF
− OpEx
−$25.1K −$6.79/SF
NOI
$75.3K $20.37/SF
Area
Austin, TX
Vacancy
24.30%
Lease Rate
$35.88 /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%
$1,506,620
Cap Rate 7%
$1,076,157
Cap Rate 9%
$837,011
Alternative Uses
Best Use
Office B
$1.08M
$941.6K – $1.26M
NOI $75,331 @ 7.0% cap · market cap 5.29%
Second Best
Healthcare Medical
$696.1K
$609.1K – $812.1K
NOI $48,725 @ 7.0% cap · market cap 3.42%
Theoretical Best
Office A
$1.45M
$1.27M – $1.69M
NOI $101,439 @ 7.0% cap · market cap 7.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
665
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78749, TX
35,239
Population
16,554
Households
2.1
Avg Household Size
37
Median Age
67%
College-Educated
96%
High-School Grad
9.7 sq mi
ZIP Area
3,633
Density / Sq Mi
$113,918
Median Household Income
$70,158
Median Earnings
$1,843
Median Rent
$530,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Austin, TX
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Similar Off Market Nearby
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two ground-level medical office units are both occupied under a single lease.
Where is this medical office space located?
The property is located at 5920 W William Cannon Dr Austin, TX.
What is the asking price?
The asking price for this property is $1,423,730.
What are key features of this property?
This property features: Two ground‑level medical office units, both occupied by a single medical tenant under one lease.; Ground‑level access supports customer‑facing operations and ADA‑compliant business use.; Commercial zoning (LO‑NP, LR‑NP) suitable for medical, professional office, wellness, or service‑based businesses.
