Renovated Office Building with
For Sale
$9,400,000
135 S Mountain Way Dr, Orem, UT 84058
Turnkey, fully renovated office building with modern amenities and extensive on-site parking for tenant or investor use.
Property Size42,731 SF
Lot Size1.20 Acres
Price / SF$219.98
Days on Market98
Property Features for 135 S Mountain Way Dr
General Information
Standard status
Active
Size
42,731 SF
Total Parking Spaces
123
Lot size
1.20 Acres
Property subtype
Office
Additional Details
Highway Access
Yes
Building Details
Year Built
1978
Year Renovated
2021
Listing Agency:
Woodley Real Estate
Listed By:
Eric Woodley
(801) 362-7848
Source:
Commercialcafe
Added: Jun 4
Changed: Sep 8
Last Checked: Sep 9 at 6:09AM
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 Woodley Real Estate
Investment Insights
Based on property information with market context.
This fully renovated office building at 135 S Mountain Way Dr was built in 1978 and underwent a complete renovation in 2021. The property totals 42,731 square feet on 1.20 acres, with an additional 0.60-acre parking lot. Improvements include modern office space along with fitness amenities such as a basketball court, locker rooms, and a steam room. For building presentation and operations, it also features programmable digital signage.
The site includes 123 parking stalls to support employee and visitor access. The property is described as having excellent freeway visibility, which can be advantageous for businesses seeking clear presence from passing traffic.
Designed for owner-occupiers or investors, this property is positioned as a high-quality turnkey office facility. The combination of recently renovated office space, on-site amenities, and ample parking may appeal to tenants looking for a move-in ready environment, or to buyers seeking an operationally complete office asset.
The site includes 123 parking stalls to support employee and visitor access. The property is described as having excellent freeway visibility, which can be advantageous for businesses seeking clear presence from passing traffic.
Designed for owner-occupiers or investors, this property is positioned as a high-quality turnkey office facility. The combination of recently renovated office space, on-site amenities, and ample parking may appeal to tenants looking for a move-in ready environment, or to buyers seeking an operationally complete office asset.
Key Highlights
- Fully renovated office building built in 1978 with 42,731 SF of modern office space
- Renovated in 2021 with programmable digital signage
- Fitness amenities include a basketball court, locker rooms, and a steam room
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
$599,943
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
6.38%
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%
$11,998,860
$12.0M
Cap Rate 7%
$8,570,614
$8.6M
Cap Rate 9%
$6,666,033
$6.7M
Market Conditions
NOI Build-Up for 42,731 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
$1.03M $24.00/SF
− Vacancy
−$225.6K −$5.28/SF
EGI
$799.9K $18.72/SF
− OpEx
−$200.0K −$4.68/SF
NOI
$599.9K $14.04/SF
Area
Utah County, UT
Vacancy
22.00%
Lease Rate
$24.00 /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%
$11,998,860
Cap Rate 7%
$8,570,614
Cap Rate 9%
$6,666,033
Alternative Uses
Best Use
Office B
$8.57M
$7.50M – $10.00M
NOI $599,943 @ 7.0% cap · market cap 6.38%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$11.78M
$10.31M – $13.74M
NOI $824,537 @ 7.0% cap · market cap 8.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
932
Businesses Nearby
Explore this area
Business Placement
Demographics for 84058, UT
33,734
Population
11,749
Households
2.9
Avg Household Size
26
Median Age
41%
College-Educated
93%
High-School Grad
8.0 sq mi
ZIP Area
4,217
Density / Sq Mi
$71,474
Median Household Income
$27,325
Median Earnings
$1,395
Median Rent
$441,900
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Turnkey, fully renovated office building with modern amenities and extensive on-site parking for tenant or investor use.
Where is this office building located?
The property is located at 135 S Mountain Way Dr Orem, UT.
What is the asking price?
The asking price for this property is $9,400,000.
What are key features of this property?
This property features: Fully renovated office building built in 1978 with 42,731 SF of modern office space; Renovated in 2021 with programmable digital signage; Fitness amenities include a basketball court, locker rooms, and a steam room
