Renovated Mixed-Use Property with
For Sale
$595,000
Pending
1740 West Fitzhugh Road, Dripping Springs, TX 78620
Unzoned home-office property with solar generation and adaptable commercial use potential.
Property Size2,450 SF
Days on Market1294
Property Features for 1740 West Fitzhugh Road
General Information
Standard status
Pending
Size
2,450 SF
Total Parking Spaces
20
Property subtype
Commercial Sale / Mixed Use
Zoning
Unzoned!
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$17,861
Amenities
Beautiful hill country views
solar panels
Building Details
Year Built
2016
Buildings
4
Listing Agency:
Berkshire Hathaway TX Realty
(512) 423-0456
Listed By:
Dave Bair · License #0244388
(512) 423-0456
Source:
Compass
Added: Feb 13, 2023
Changed: Aug 29
Last Checked: Aug 29 at 9:13PM
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 Berkshire Hathaway TX Realty
Investment Insights
Based on property information with market context.
This mixed-use property combines a recently renovated home and office configuration with solar panels that are currently generating more than enough electricity. The buyer will assume the associated monthly payments for the solar system. Built in 2016, the property offers a flexible setting for commercial and live-work applications.
The property is located at 1740 West Fitzhugh Road in Dripping Springs, Texas, north of Dripping Springs and south of Bee Cave. The source information identifies potential applications including an electrical or plumbing contractor’s office, dog grooming and boarding, and other live-work solutions. The property is described as unzoned and includes Hill Country views.
The property is located at 1740 West Fitzhugh Road in Dripping Springs, Texas, north of Dripping Springs and south of Bee Cave. The source information identifies potential applications including an electrical or plumbing contractor’s office, dog grooming and boarding, and other live-work solutions. The property is described as unzoned and includes Hill Country views.
Key Highlights
- Recently renovated home and office configuration
- Solar panels currently generate more than enough electricity; buyer to assume monthly payments
- Unzoned property
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
$33,075
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
5.56%
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%
$661,500
$661.5K
Cap Rate 7%
$472,500
$472.5K
Cap Rate 9%
$367,500
$367.5K
Market Conditions
NOI Build-Up for 2,450 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
$58.8K $24.00/SF
− Vacancy
−$5.9K −$2.40/SF
EGI
$52.9K $21.60/SF
− OpEx
−$19.8K −$8.10/SF
NOI
$33.1K $13.50/SF
Area
Hays County, TX
Vacancy
10.00%
Lease Rate
$24.00 /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%
$661,500
Cap Rate 7%
$472,500
Cap Rate 9%
$367,500
Alternative Uses
Best Use
Office B
$834.6K
$730.3K – $973.7K
NOI $58,421 @ 7.0% cap · market cap 9.82%
Second Best
Mixed Use
$472.5K
$413.4K – $551.3K
NOI $33,075 @ 7.0% cap · market cap 5.56%
Theoretical Best
Office A
$1.02M
$896.1K – $1.19M
NOI $71,691 @ 7.0% cap · market cap 12.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
10
Businesses Nearby
Explore this area
Business Placement
Demographics for 78620, TX
20,493
Population
7,929
Households
2.6
Avg Household Size
43
Median Age
62%
College-Educated
97%
High-School Grad
175.6 sq mi
ZIP Area
117
Density / Sq Mi
$146,551
Median Household Income
$58,583
Median Earnings
$1,674
Median Rent
$624,800
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Unzoned home-office property with solar generation and adaptable commercial use potential.
Where is this mixed-use property located?
The property is located at 1740 West Fitzhugh Road Dripping Springs, TX.
What is the asking price?
The asking price for this property is $595,000.
What are key features of this property?
This property features: Recently renovated home and office configuration; Solar panels currently generate more than enough electricity; buyer to assume monthly payments; Unzoned property
