Fitzhugh Road Commercial
For Sale
Contact for pricing
16804 Fitzhugh Rd, Dripping Springs, TX 78620
One-acre lot on Fitzhugh Corridor with redevelopment potential.
Property Size912 SF
Lot Size1.00 Acre
Price / SF$822.37
Days on Market422
Property Features for 16804 Fitzhugh Rd
General Information
Standard status
Active
Size
912 SF
Lot size
1.00 Acre
Property subtype
Retail, Office
Building Details
Year Built
1985
Listing Agency:
Stanberry Commercial
Listed By:
Scott Daves · License #TX 470497
Source:
Crexi
Added: Jun 20, 2025
Changed: Aug 8
Last Checked: Aug 8 at 2:47PM
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 Stanberry Commercial
Investment Insights
Based on property information with market context.
This is a rare opportunity to own a 1-acre lot located on the busy Fitzhugh Corridor, just off RR 12 and minutes from both Austin and Dripping Springs. The property includes an existing 912 square foot structure suitable for office or retail use, or offers potential for redevelopment to suit your needs. With light deed restrictions and flexible commercial use allowed, this site is ideal for investors, owner/users, or developers looking to capitalize on one of the Hill Country's busiest growth corridors. This is a strategic, high-visibility location.
Key Highlights
- Prime 1‑acre lot on the high‑traffic Fitzhugh Corridor.
- Strategic location minutes from Austin and Dripping Springs.
- Existing structure suitable for office or retail use.
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
$21,747
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
2.90%
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%
$434,940
$434.9K
Cap Rate 7%
$310,671
$310.7K
Cap Rate 9%
$241,633
$241.6K
Market Conditions
NOI Build-Up for 912 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
$38.3K $42.00/SF
− Vacancy
−$9.3K −$10.21/SF
EGI
$29.0K $31.79/SF
− OpEx
−$7.2K −$7.95/SF
NOI
$21.7K $23.85/SF
Area
Hays County, TX
Vacancy
24.30%
Lease Rate
$42.00 /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%
$434,940
Cap Rate 7%
$310,671
Cap Rate 9%
$241,633
Alternative Uses
Best Use
Office B
$310.7K
$271.8K – $362.5K
NOI $21,747 @ 7.0% cap · market cap 2.90%
Second Best
Retail
$229.4K
$200.7K – $267.7K
NOI $16,059 @ 7.0% cap · market cap 2.14%
Theoretical Best
Office A
$381.2K
$333.6K – $444.8K
NOI $26,687 @ 7.0% cap · market cap 3.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
766
Businesses Nearby
Explore this area
Business Placement
Demographics for 78620, TX
20,493
Population
7,929
Households
2.6
Avg Household Size
43
Median Age
62%
College-Educated
97%
High-School Grad
175.6 sq mi
ZIP Area
117
Density / Sq Mi
$146,551
Median Household Income
$58,583
Median Earnings
$1,674
Median Rent
$624,800
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?
Commercial land - One-acre lot on Fitzhugh Corridor with redevelopment potential.
Where is this commercial land located?
The property is located at 16804 Fitzhugh Rd Dripping Springs, TX.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Prime 1‑acre lot on the high‑traffic Fitzhugh Corridor.; Strategic location minutes from Austin and Dripping Springs.; Existing structure suitable for office or retail use.
