Building Details

Building Size 2,880 SF

Stories 2

Construction steel frame

Listing Agency: Coldwell Banker Village Communities j***@gmail.com Show Phone

Listed By: Jameson McFadden · License #00081489 Show Phone

Source: Jcthornton

Added: Aug 30, 2023 Changed: Aug 4 Last Checked: Aug 8 at 12:35PM

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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 Coldwell Banker Village Communities

Investment Insights

Based on property information with market context.

This flex-space property includes a steel-frame building measuring 40 X 60, with 480 square feet of living quarters located upstairs. The two-level configuration combines commercial building area with dedicated residential-style space within the structure.

The property encompasses approximately 2 acres, subject to a new survey, and sits directly off Hwy 91 at 1089 Hwy 91 in Bono, Arkansas. Westside Schools are nearby, adding an identifiable institutional reference to the surrounding area.

Key Highlights

• 40 X 60 steel frame building
• 480 square feet of living quarters upstairs
• Approximately 2 acres, subject to new survey

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

$21,859

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

8.25%

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%

$437,180 $437.2K

Cap Rate 7%

$312,271 $312.3K

Cap Rate 9%

$242,878 $242.9K

Market Conditions

NOI Build-Up for 2,880 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

$38.0K $13.20/SF

− Vacancy

−$3.0K −$1.06/SF

EGI

$35.0K $12.14/SF

− OpEx

−$13.1K −$4.55/SF

NOI

$21.9K $7.59/SF

Area

Craighead County, AR

Vacancy

8.00%

Lease Rate

$13.20 /SF/Yr

Expense Ratio

37.50%

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%

$437,180

Cap Rate 7%

$312,271

Cap Rate 9%

$242,878

Alternative Uses

Best Use

Mixed Use

$312.3K

$273.2K – $364.3K (±1% cap)

NOI $21,859 @ 7.0% cap · market cap 8.25%

Second Best

Flex RnD

$249.8K

$218.6K – $291.5K (±1% cap)

NOI $17,489 @ 7.0% cap · market cap 6.60%

Theoretical Best

Office A

$504.2K

$441.2K – $588.3K (±1% cap)

NOI $35,295 @ 7.0% cap · market cap 13.32%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Pinkston Photography Photography Service

Suggested Use

Top Pick HVAC Service Storage Facility Cafe & Coffee Shop Pet Grooming Service Gym & Fitness Center

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

Lease Details

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

35

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 72416, AR

5,661

Population

2,405

Households

2.4

Avg Household Size

37

Median Age

19%

College-Educated

88%

High-School Grad

88.7 sq mi

ZIP Area

64

Density / Sq Mi

$72,452

Median Household Income

$36,421

Median Earnings

$891

Median Rent

$157,700

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this flex space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - Commercial building with upstairs living quarters and direct proximity to Hwy 91.

Where is this flex space located?

The property is located at 1089 Hwy 91 Bono, AR.

What is the asking price?

The asking price for this property is $265,000.

What are key features of this property?

This property features: 40 X 60 steel frame building; 480 square feet of living quarters upstairs; Approximately 2 acres, subject to new survey