Medical Office Building with Flexible
For Sale
$849,000
638 Londonderry Lane, Denton, TX 76205
Signalized-corner property near I-35 includes surface parking and a layout suited to healthcare or office occupancy.
Property Size3,380 SF
Price / SF$251.18
Days on Market130
Property Features for 638 Londonderry Lane
General Information
Standard status
Active
Size
3,380 SF
Property subtype
Commercial
Zoning
Suburban Corridor
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
3,380 SF
Year Built
1976
Buildings
1
Stories
2
Units
1
Listing Agency:
Scott Brown Properties, Inc
(940) 243-7638
Listed By:
Ryan Burks · License #0790768
Source:
Signaturere
Added: Apr 24
Changed: Aug 30
Last Checked: Apr 24 at 7:17AM
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 Scott Brown Properties, Inc
Investment Insights
Based on property information with market context.
The 3,380± square-foot medical office building was constructed in 1976 and offers a practical arrangement for healthcare or general office use. Interior areas include a reception and waiting zone, multiple bathrooms, private offices, exam rooms, and an open bullpen or treatment area. Central air and electric service are identified in the property details.
Positioned at the signalized intersection of Londonderry Lane and Teasley Lane in Denton, the property is less than a quarter mile from I-35. Surface parking supports medical, office, and customer-oriented operations. Medical City Denton and Texas Health Resources are located within minutes, providing nearby healthcare-system context for medical and wellness-related users.
Positioned at the signalized intersection of Londonderry Lane and Teasley Lane in Denton, the property is less than a quarter mile from I-35. Surface parking supports medical, office, and customer-oriented operations. Medical City Denton and Texas Health Resources are located within minutes, providing nearby healthcare-system context for medical and wellness-related users.
Key Highlights
- 3,380± square feet of medical office space
- Signalized intersection at Londonderry Lane and Teasley Lane
- Less than a quarter mile from I‑35
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
$53,045
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
6.25%
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%
$1,060,900
$1.1M
Cap Rate 7%
$757,786
$757.8K
Cap Rate 9%
$589,389
$589.4K
Market Conditions
NOI Build-Up for 3,380 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
$91.3K $27.00/SF
− Vacancy
−$20.5K −$6.08/SF
EGI
$70.7K $20.93/SF
− OpEx
−$17.7K −$5.23/SF
NOI
$53.0K $15.69/SF
Area
Denton, TX
Vacancy
22.50%
Lease Rate
$27.00 /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%
$1,060,900
Cap Rate 7%
$757,786
Cap Rate 9%
$589,389
Alternative Uses
Best Use
Office B
$757.8K
$663.1K – $884.1K
NOI $53,045 @ 7.0% cap · market cap 6.25%
Second Best
Healthcare Medical
$704.0K
$616.0K – $821.3K
NOI $49,280 @ 7.0% cap · market cap 5.80%
Theoretical Best
Office A
$1.06M
$924.0K – $1.23M
NOI $73,921 @ 7.0% cap · market cap 8.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
635
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 76205, TX
18,969
Population
8,114
Households
2.3
Avg Household Size
29
Median Age
39%
College-Educated
88%
High-School Grad
8.3 sq mi
ZIP Area
2,285
Density / Sq Mi
$65,322
Median Household Income
$31,173
Median Earnings
$1,368
Median Rent
$307,900
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?
Medical Office Space - Signalized-corner property near I-35 includes surface parking and a layout suited to healthcare or office occupancy.
Where is this medical office space located?
The property is located at 638 Londonderry Lane Denton, TX.
What is the asking price?
The asking price for this property is $849,000.
What are key features of this property?
This property features: 3,380± square feet of medical office space; Signalized intersection at Londonderry Lane and Teasley Lane; Less than a quarter mile from I‑35
