Freestanding Bank/Office Building in
For Sale
$650,000
1502 Ave J, Lubbock, TX 79401
Freestanding bank/office building in Downtown Lubbock for sale.
Property Size2,446 SF
Days on Market159
Property Features for 1502 Ave J
General Information
Standard status
Active
Size
2,446 SF
Property subtype
Office
Zoning
MU-3
Building Details
Building Size
2,446 SF
Year Built
1995
Listing Agency:
Coldwell Banker Commercial Capital Advisors
(806) 793-0888
Listed By:
Alex Eberhardt
(806) 793-0888
Source:
Cbcworldwide
Added: Mar 5
Changed: Aug 8
Last Checked: Aug 8 at 6:06AM
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 Coldwell Banker Commercial Capital Advisors
Investment Insights
Based on property information with market context.
The property at 1502 Ave J presents a rare opportunity to acquire a freestanding bank/office building situated in the heart of Downtown Lubbock. This institutional-quality building offers a highly functional space suitable for either an owner-user or an investor looking for a financial-services facility. Lubbock is recognized as one of West Texas’ fastest-growing regional hubs, supported by a diverse and resilient economy. The economy is anchored by healthcare, education, agriculture, government, and expanding private-sector investment. As home to Texas Tech University, the city benefits from a steady pipeline of talent, research growth, and a consistent base of employment. This drives long-term demand for housing, retail, and professional services.
Key Highlights
- Freestanding bank/office building in Downtown Lubbock.
- Institutional‑quality footprint suitable for owner‑user or investor.
- Ideal for office/financial‑services facility.
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
$31,975
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
4.92%
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%
$639,500
$639.5K
Cap Rate 7%
$456,786
$456.8K
Cap Rate 9%
$355,278
$355.3K
Market Conditions
NOI Build-Up for 2,446 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
$51.4K $21.00/SF
− Vacancy
−$8.7K −$3.57/SF
EGI
$42.6K $17.43/SF
− OpEx
−$10.7K −$4.36/SF
NOI
$32.0K $13.07/SF
Area
Lubbock, TX
Vacancy
17.00%
Lease Rate
$21.00 /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%
$639,500
Cap Rate 7%
$456,786
Cap Rate 9%
$355,278
Alternative Uses
Best Use
Office B
$456.8K
$399.7K – $532.9K
NOI $31,975 @ 7.0% cap · market cap 4.92%
Second Best
Specialty Retail
$394.8K
$345.5K – $460.7K
NOI $27,639 @ 7.0% cap · market cap 4.25%
Theoretical Best
Office A
$616.6K
$539.6K – $719.4K
NOI $43,165 @ 7.0% cap · market cap 6.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,300
Businesses Nearby
Explore this area
Business Placement
Demographics for 79401, TX
8,775
Population
4,813
Households
1.8
Avg Household Size
26
Median Age
26%
College-Educated
85%
High-School Grad
2.5 sq mi
ZIP Area
3,510
Density / Sq Mi
$27,255
Median Household Income
$20,570
Median Earnings
$1,048
Median Rent
$101,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Bank - Freestanding bank/office building in Downtown Lubbock for sale.
Where is this bank located?
The property is located at 1502 Ave J Lubbock, TX.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Freestanding bank/office building in Downtown Lubbock.; Institutional‑quality footprint suitable for owner‑user or investor.; Ideal for office/financial‑services facility.
