Single-Story Office
For Sale
$575,000
221-223 N Locust Street, Denton, TX 76201
CommercialSale, Denton, TX
Property Size2,900 SF
Lot Size0.12 Acres
Price / SF$198.28
Days on Market72
Property Features for 221-223 N Locust Street
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
DC-G
Parking features
On Street, Parking Lot
Subdivision
O T Denton
Lot features
Historic District
Directions
From the Historic Denton Square, travel north one block on N. Locust Street. Property is located on the northwest corner of N. Locust Street and W. McKinney Street. GPS Friendly.
Standard status
Active
APN
R32923
Lot size
0.12 Acres
Taxes and HOA fees
Tax Description
O T DENTON BLK 16 LOT 3(N50' OF S102' & W12'
Tax Annual Amount
6469
Legal Description
O T DENTON BLK 16 LOT 3(N50' OF S102' & W12'
Utilities
Sewer type
Public Sewer
Heating system
Natural Gas, Central
Cooling system
Electric, Central Air
Water source
Public
Building Details
Year built
1965
Floors in Building
1
Number of units
2
Flooring type
Laminate, Carpet
Building materials
Brick
Roof type
Metal
Listing Agency:
INC Realty, LLC
(972) 351-1095
Listed By:
Melissa Cooper · License #0743420
(940) 300-2334
Added: Jun 26
Changed: Sep 4
Last Checked: Sep 5 at 8:06AM
MLS# 21312731
Copyright © 2026 North Texas Real Estate Information Systems, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,900-square-foot, single-story brick office building at 221-223 N Locust Street includes carpet and laminate flooring, central heating and cooling, a metal roof, and public water and sewer service. The property is fully occupied by two local businesses, with current leases extending to approximately mid-2027. Tenants include Grammy Award-winning Brave Combo.
Located at the corner of N. Locust Street and W. McKinney Street, the property sits one block from the Historic Denton Square and within Denton's downtown commercial setting. The site provides street-facing storefront exposure, on-street parking, and additional parking at the rear. DC-G zoning supports office, retail, studio, creative, and professional-service uses, subject to City of Denton approval. Built in 1965, the property is surrounded by restaurants, shops, entertainment venues, and professional offices.
Located at the corner of N. Locust Street and W. McKinney Street, the property sits one block from the Historic Denton Square and within Denton's downtown commercial setting. The site provides street-facing storefront exposure, on-street parking, and additional parking at the rear. DC-G zoning supports office, retail, studio, creative, and professional-service uses, subject to City of Denton approval. Built in 1965, the property is surrounded by restaurants, shops, entertainment venues, and professional offices.
Key Highlights
- 2,900‑square‑foot single‑story office building on a 0.124‑acre lot
- 100% occupied by two established local businesses
- Leases extend through approximately mid‑2027
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
$45,512
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
7.92%
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%
$910,240
$910.2K
Cap Rate 7%
$650,171
$650.2K
Cap Rate 9%
$505,689
$505.7K
Market Conditions
NOI Build-Up for 2,900 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
$78.3K $27.00/SF
− Vacancy
−$17.6K −$6.08/SF
EGI
$60.7K $20.93/SF
− OpEx
−$15.2K −$5.23/SF
NOI
$45.5K $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%
$910,240
Cap Rate 7%
$650,171
Cap Rate 9%
$505,689
Alternative Uses
Best Use
Office B
$650.2K
$568.9K – $758.5K
NOI $45,512 @ 7.0% cap · market cap 7.92%
Second Best
Retail
$606.9K
$531.1K – $708.1K
NOI $42,484 @ 7.0% cap · market cap 7.39%
Theoretical Best
Office A
$906.1K
$792.8K – $1.06M
NOI $63,424 @ 7.0% cap · market cap 11.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,235
Businesses Nearby
Explore this area
Business Placement
Demographics for 76201, TX
27,610
Population
13,087
Households
2.1
Avg Household Size
26
Median Age
46%
College-Educated
95%
High-School Grad
5.5 sq mi
ZIP Area
5,020
Density / Sq Mi
$37,863
Median Household Income
$18,308
Median Earnings
$1,128
Median Rent
$250,200
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?
Office building - Brick commercial building with two leased suites, public utilities, and both rear-lot and on-street parking.
Where is this office building located?
The property is located at 221-223 N Locust Street Denton, TX.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: 2,900‑square‑foot single‑story office building on a 0.124‑acre lot; 100% occupied by two established local businesses; Leases extend through approximately mid‑2027
