McKinney Office Condo For
For Sale
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1402 S Custer Rd #1004, McKinney, TX 75072
Professional office condo in established McKinney commercial area.
Property Size1,225 SF
Price / SF$375.51
Days on Market82
Property Features for 1402 S Custer Rd #1004
General Information
Standard status
Active
Size
1,225 SF
Class
B
Total Parking Spaces
35
Property subtype
Office
Zoning
C1 - NEIGHBORHOOD COMMERCIAL
Investment Type
Owner/User
Building Details
Year Built
2017
Buildings
1
Stories
1
Units
39
Listing Agency:
Carey Cox Company
(214) 636-3291
Listed By:
David Cox · License #0472928
Source:
Crexi
Added: May 23
Changed: Aug 8
Last Checked: May 27 at 8:20AM
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 Carey Cox Company
Investment Insights
Based on property information with market context.
This professional office condo is located along the highly traveled Custer Road corridor in McKinney. The suite features a functional layout that includes private offices, a reception area, a break area, and an open workspace. It is situated within the West Ridge Office Condos, which benefits from convenient access and ample parking. The property is suitable for professional services, insurance, real estate, counseling, or similar office uses. The property size is 1225 square feet. The location offers proximity to surrounding retail, restaurants, and dense residential growth throughout West McKinney.
Key Highlights
- Prime location on highly traveled Custer Road in McKinney.
- Functional layout with private offices, reception, break area, and open workspace.
- Ideal for professional services, insurance, real estate, counseling, or similar office users.
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
$15,737
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
3.42%
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%
$314,740
$314.7K
Cap Rate 7%
$224,814
$224.8K
Cap Rate 9%
$174,856
$174.9K
Market Conditions
NOI Build-Up for 1,225 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
$26.9K $21.96/SF
− Vacancy
−$5.9K −$4.83/SF
EGI
$21.0K $17.13/SF
− OpEx
−$5.2K −$4.28/SF
NOI
$15.7K $12.85/SF
Area
McKinney, TX
Vacancy
22.00%
Lease Rate
$21.96 /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%
$314,740
Cap Rate 7%
$224,814
Cap Rate 9%
$174,856
Alternative Uses
Best Use
Office B
$224.8K
$196.7K – $262.3K
NOI $15,737 @ 7.0% cap · market cap 3.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$344.4K
$301.4K – $401.8K
NOI $24,108 @ 7.0% cap · market cap 5.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
206
Businesses Nearby
Explore this area
Business Placement
Demographics for 75072, TX
55,538
Population
18,618
Households
3
Avg Household Size
38
Median Age
62%
College-Educated
98%
High-School Grad
12.1 sq mi
ZIP Area
4,590
Density / Sq Mi
$155,294
Median Household Income
$74,341
Median Earnings
$2,317
Median Rent
$472,700
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 units - Professional office condo in established McKinney commercial area.
Where is this office units located?
The property is located at 1402 S Custer Rd #1004 McKinney, TX.
What is the asking price?
The asking price for this property is $460,000.
What are key features of this property?
This property features: Prime location on highly traveled Custer Road in McKinney.; Functional layout with private offices, reception, break area, and open workspace.; Ideal for professional services, insurance, real estate, counseling, or similar office users.
