Two-Story Leased Office
For Sale
Contact for pricing
224 Commerce Dr, Brandon, MS 39042
Professional office asset with a lease in place through December 2026.
Property Size5,891 SF
Price / SF$130.71
Days on Market522
Property Features for 224 Commerce Dr
General Information
Standard status
Active
Size
5,891 SF
Property subtype
OFFICE
Financials
Asking Price
$770,000
Cap Rate
9.5%
Building Details
Stories
2
Tenancy
Single
Listing Agency:
NAI UCR Properties
(601) 981-6800
Listed By:
Micah McCullough · License #B-18980
(601) 981-6800
Source:
Moodyscre
Added: Mar 12, 2025
Changed: Jul 31
Last Checked: Jul 31 at 3:32PM
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 NAI UCR Properties
Investment Insights
Based on property information with market context.
224 Commerce Dr is a two-story office building containing 5,891 square feet in Brandon, Mississippi. The property is leased to Gray Daniels Auto Accounting group, with the current lease in place through December 2026.
The asset is offered as a leased office investment with a 9.5% capitalization rate. It is located in a business-oriented setting surrounded by professional services, providing a defined office use and an existing tenancy at the time of sale.
The asset is offered as a leased office investment with a 9.5% capitalization rate. It is located in a business-oriented setting surrounded by professional services, providing a defined office use and an existing tenancy at the time of sale.
Key Highlights
- 5,891‑square‑foot two‑story office building
- Leased to Gray Daniels Auto Accounting group
- Current lease in place through December 2026
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
$63,623
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
8.26%
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%
$1,272,460
$1.3M
Cap Rate 7%
$908,900
$908.9K
Cap Rate 9%
$706,922
$706.9K
Market Conditions
NOI Build-Up for 5,891 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
$106.0K $18.00/SF
− Vacancy
−$21.2K −$3.60/SF
EGI
$84.8K $14.40/SF
− OpEx
−$21.2K −$3.60/SF
NOI
$63.6K $10.80/SF
Area
Rankin County, MS
Vacancy
20.00%
Lease Rate
$18.00 /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%
$1,272,460
Cap Rate 7%
$908,900
Cap Rate 9%
$706,922
Alternative Uses
Best Use
Office B
$908.9K
$795.3K – $1.06M
NOI $63,623 @ 7.0% cap · market cap 8.26%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.62M
$1.41M – $1.89M
NOI $113,107 @ 7.0% cap · market cap 14.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
664
Businesses Nearby
Explore this area
Business Placement
Demographics for 39042, MS
39,069
Population
14,498
Households
2.7
Avg Household Size
39
Median Age
35%
College-Educated
94%
High-School Grad
214.2 sq mi
ZIP Area
182
Density / Sq Mi
$88,780
Median Household Income
$46,877
Median Earnings
$1,045
Median Rent
$249,200
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 - Professional office asset with a lease in place through December 2026.
Where is this office building located?
The property is located at 224 Commerce Dr Brandon, MS.
What is the asking price?
The asking price for this property is $770,000.
What are key features of this property?
This property features: 5,891‑square‑foot two‑story office building; Leased to Gray Daniels Auto Accounting group; Current lease in place through December 2026
