Listing Agency: Edmonds & Company Real Estate, LLC Show Phone

Listed By: Todd N. Edmonds · License #397499 Show Phone

Source: Moodyscre

Added: Apr 9, 2024 Changed: Aug 22 Last Checked: Sep 14 at 11:47AM

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Investment Insights

Based on property information with market context.

This new office condo unit offers 1,225 square feet of space. The layout includes four offices, a lounge, a restroom, closets, and a reception area. An interior office features two transom casement windows to allow natural light. The single-story building has private entrances and commercial-grade finishes. The unit has its own HVAC system and is individually metered. The reception area features crown molding, and the lounge has granite countertops. The property is fully landscaped, and exterior maintenance is handled as part of a Property Owners Association. Office sizes in the building range from approximately 1,225 to 6,125 square feet. Individual units include private offices, a conference room, a break room, a restroom, and a reception area.

Key Highlights

• New office condo with turnkey or build‑to‑suite options.
• Unit 202: 1,225 SF with 4 offices, lounge, restroom, closets, and reception area.
• Individually metered with own HVAC system.

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

$16,045

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

4.80%

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%

$320,900 $320.9K

Cap Rate 7%

$229,214 $229.2K

Cap Rate 9%

$178,278 $178.3K

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

$28.2K $23.04/SF

− Vacancy

−$6.8K −$5.58/SF

EGI

$21.4K $17.46/SF

− OpEx

−$5.3K −$4.37/SF

NOI

$16.0K $13.10/SF

Area

Harris County, TX

Vacancy

24.20%

Lease Rate

$23.04 /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%

$320,900

Cap Rate 7%

$229,214

Cap Rate 9%

$178,278

Alternative Uses

Best Use

Office B

$229.2K

$200.6K – $267.4K (±1% cap)

NOI $16,045 @ 7.0% cap · market cap 4.80%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$334.5K

$292.7K – $390.2K (±1% cap)

NOI $23,414 @ 7.0% cap · market cap 7.00%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Office Units

Suggested Use

Top Pick Law Firm Building Supply Auto Parts Store Big Box & Wholesale Store (Bike/Boat/Book/etc) Store Accounting Firm

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

931

Businesses Nearby

Explore this area Business Placement

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this office units located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Office units - New office condo with private entrances and commercial-grade finishes.

Where is this office units located?

The property is located at 17904 W Lake Houston Parkway Atascocita, TX.

What is the asking price?

The asking price for this property is $334,400.

What are key features of this property?

This property features: New office condo with turnkey or build‑to‑suite options.; Unit 202: **1,225 SF with 4 offices, lounge, restroom, closets, and reception area.**; Individually metered with own HVAC system.