Two-Story Office Building in
For Sale
$1,600,000
1305 S Key Avenue, Lampasas, TX 76550
20,000 SF office building with highway frontage and parking.
Property Size20,000 SF
Price / SF$80
Days on Market109
Property Features for 1305 S Key Avenue
General Information
Standard status
Active
Size
20,000 SF
Property subtype
Commercial
Zoning
Commercial
Building Details
Building Size
20,000 SF
Year Built
1990
Stories
2
Units
1
Listing Agency:
TEXAS REAL ESTATE SALES
(512) 556-9090
Listed By:
Leah Caruthers · License #0561403
(512) 556-9090
Source:
Signaturere
Added: Apr 22
Changed: Aug 8
Last Checked: Aug 7 at 9:07AM
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 TEXAS REAL ESTATE SALES
Investment Insights
Based on property information with market context.
This 20,000 square-foot two-story office building is located in Lampasas, Texas. The property benefits from its location on a three-highway corridor, with Highways 281, 183, and 190 flowing through the area. The site has a Texdot car count of 15,720 and 200 feet of highway frontage. Situated on a corner lot, the property is near the intersection of Highway 190 and the connection route to Highway 281. The building currently houses several tenants and has space for more. An oversized parking lot provides ample parking or additional building space. The seller owns additional land across the side street that can be purchased.
Key Highlights
- Located on a three‑highway corridor (Highway 281, Highway 183, and Highway 190) in Lampasas, Texas.
- High traffic count of 15,720 vehicles per day (Texdot).
- 200 feet of highway frontage on a corner lot.**
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
$126,336
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
7.90%
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%
$2,526,720
$2.5M
Cap Rate 7%
$1,804,800
$1.8M
Cap Rate 9%
$1,403,733
$1.4M
Market Conditions
NOI Build-Up for 20,000 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
$192.0K $9.60/SF
− Vacancy
−$11.5K −$0.58/SF
EGI
$180.5K $9.02/SF
− OpEx
−$54.1K −$2.71/SF
NOI
$126.3K $6.32/SF
Area
Lampasas County, TX
Vacancy
6.00%
Lease Rate
$9.60 /SF/Yr
Expense Ratio
30.00%
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%
$2,526,720
Cap Rate 7%
$1,804,800
Cap Rate 9%
$1,403,733
Alternative Uses
Best Use
Office B
$3.78M
$3.30M – $4.41M
NOI $264,384 @ 7.0% cap · market cap 16.52%
Second Best
Retail
$3.40M
$2.97M – $3.96M
NOI $237,888 @ 7.0% cap · market cap 14.87%
Theoretical Best
Office A
$4.80M
$4.20M – $5.60M
NOI $336,269 @ 7.0% cap · market cap 21.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
292
Businesses Nearby
Explore this area
Business Placement
Demographics for 76550, TX
12,840
Population
6,129
Households
2.1
Avg Household Size
44
Median Age
22%
College-Educated
90%
High-School Grad
541.5 sq mi
ZIP Area
24
Density / Sq Mi
$73,697
Median Household Income
$34,970
Median Earnings
$902
Median Rent
$237,600
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 - 20,000 SF office building with highway frontage and parking.
Where is this office building located?
The property is located at 1305 S Key Avenue Lampasas, TX.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Located on a three‑highway corridor (Highway 281, Highway 183, and Highway 190) in Lampasas, Texas.; High traffic count of 15,720 vehicles per day (Texdot).; 200 feet of highway frontage on a corner lot.**
