Mixed-Use Property with
For Sale
$1,050,000
Pending
605 W West 18th Street N, Austin, TX 78701
Office space and a rear efficiency apartment combine within a recently refreshed downtown commercial property.
Property Size2,200 SF
Days on Market833
Property Features for 605 W West 18th Street N
General Information
Standard status
Pending
Size
2,200 SF
Additional Details
Asking Price
$1,050,000
Listing Agency:
Bryan Bjerke
(214) 396-3888
Listed By:
Carlos Gonzales · License #0507121
(512) 825-0065
Source:
Exprealty
Added: May 26, 2024
Changed: Sep 2
Last Checked: Sep 4 at 9:38AM
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 Bryan Bjerke
Investment Insights
Based on property information with market context.
This mixed-use property includes a 2,200-square-foot office area at the front and a small efficiency apartment positioned at the rear. Fresh interior and exterior paint updates the property, while wood flooring adds a defined finish throughout the existing improvements.
The building is located at 605 W 18th St in Austin, with access to downtown destinations including the Capitol, The University of Texas, and the new courthouse. Its combination of office and residential components creates a compact mixed-use configuration in central Austin.
The building is located at 605 W 18th St in Austin, with access to downtown destinations including the Capitol, The University of Texas, and the new courthouse. Its combination of office and residential components creates a compact mixed-use configuration in central Austin.
Key Highlights
- 2,200‑square‑foot front office area
- Small efficiency apartment at the rear
- Fresh interior and exterior paint
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
$44,816
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
4.27%
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%
$896,320
$896.3K
Cap Rate 7%
$640,229
$640.2K
Cap Rate 9%
$497,956
$498.0K
Market Conditions
NOI Build-Up for 2,200 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
$78.9K $35.88/SF
− Vacancy
−$19.2K −$8.72/SF
EGI
$59.8K $27.16/SF
− OpEx
−$14.9K −$6.79/SF
NOI
$44.8K $20.37/SF
Area
Austin, TX
Vacancy
24.30%
Lease Rate
$35.88 /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%
$896,320
Cap Rate 7%
$640,229
Cap Rate 9%
$497,956
Alternative Uses
Best Use
Office B
$640.2K
$560.2K – $746.9K
NOI $44,816 @ 7.0% cap · market cap 4.27%
Second Best
Mixed Use
$530.4K
$464.1K – $618.8K
NOI $37,125 @ 7.0% cap · market cap 3.54%
Theoretical Best
Office A
$862.1K
$754.3K – $1.01M
NOI $60,347 @ 7.0% cap · market cap 5.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,684
Businesses Nearby
Explore this area
Business Placement
Demographics for 78701, TX
11,625
Population
8,021
Households
1.4
Avg Household Size
38
Median Age
81%
College-Educated
96%
High-School Grad
1.5 sq mi
ZIP Area
7,750
Density / Sq Mi
$154,867
Median Household Income
$106,932
Median Earnings
$2,732
Median Rent
$653,600
Median Home Value
Market
Vacancy Rate% for Office in Austin, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Office space and a rear efficiency apartment combine within a recently refreshed downtown commercial property.
Where is this mixed-use property located?
The property is located at 605 W West 18th Street N Austin, TX.
What is the asking price?
The asking price for this property is $1,050,000.
What are key features of this property?
This property features: 2,200‑square‑foot front office area; Small efficiency apartment at the rear; Fresh interior and exterior paint
