New Construction Medical Office
New
For Sale
$448,000
1870 Harroun Avenue #400 400, McKinney, TX 75069
Open-plan professional suite with off-street parking in a new-construction building.
Property Size1,400 SF
Price / SF$320
Days on Market3
Property Features for 1870 Harroun Avenue #400 400
General Information
Standard status
Active
Size
1,400 SF
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Tenancy
Multi
Listing Agency:
Perfect Realty Partners
(469) 252-1261
Listed By:
Srinivas Chaluvadi · License #0593565
(469) 252-1252
Source:
Lillieyounggroup
Added: Sep 6
Last Checked: Sep 7 at 10:24AM
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 Perfect Realty Partners
Investment Insights
Based on property information with market context.
This new-construction medical office suite provides 1,400 SF within a six-suite professional building. The interior is configured with an open floor plan and no structural walls on the floor, allowing adjacent suites to be combined for additional space. The property also includes off-street parking and a finished exterior facade.
Positioned near the southeast quadrant of Hwy 380 and US 75 in McKinney, the building is surrounded by dense residential development that includes single-family homes and apartments. National retailers and dining options are within walking distance, while the Hwy 380 and US 75 intersection is only minutes away. The full building is also available for sale.
Positioned near the southeast quadrant of Hwy 380 and US 75 in McKinney, the building is surrounded by dense residential development that includes single-family homes and apartments. National retailers and dining options are within walking distance, while the Hwy 380 and US 75 intersection is only minutes away. The full building is also available for sale.
Key Highlights
- 1,400 SF medical office suite in a new‑construction building
- Open floor plan without structural walls on the floor
- Adjacent suites can be combined for added space
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
$18,144
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
4.05%
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%
$362,880
$362.9K
Cap Rate 7%
$259,200
$259.2K
Cap Rate 9%
$201,600
$201.6K
Market Conditions
NOI Build-Up for 1,400 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
$33.6K $24.00/SF
− Vacancy
−$3.4K −$2.40/SF
EGI
$30.2K $21.60/SF
− OpEx
−$12.1K −$8.64/SF
NOI
$18.1K $12.96/SF
Area
McKinney, TX
Vacancy
10.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
40.00%
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%
$362,880
Cap Rate 7%
$259,200
Cap Rate 9%
$201,600
Alternative Uses
Best Use
Healthcare Medical
$259.2K
$226.8K – $302.4K
NOI $18,144 @ 7.0% cap · market cap 4.05%
Second Best
Office B
$256.9K
$224.8K – $299.8K
NOI $17,985 @ 7.0% cap · market cap 4.01%
Theoretical Best
Office A
$393.6K
$344.4K – $459.2K
NOI $27,552 @ 7.0% cap · market cap 6.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
49
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 75069, TX
39,084
Population
16,958
Households
2.3
Avg Household Size
38
Median Age
37%
College-Educated
88%
High-School Grad
33.7 sq mi
ZIP Area
1,160
Density / Sq Mi
$82,804
Median Household Income
$42,816
Median Earnings
$1,530
Median Rent
$413,700
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?
Medical Office Space - Open-plan professional suite with off-street parking in a new-construction building.
Where is this medical office space located?
The property is located at 1870 Harroun Avenue #400 400 McKinney, TX.
What is the asking price?
The asking price for this property is $448,000.
What are key features of this property?
This property features: 1,400 SF medical office suite in a new‑construction building; Open floor plan without structural walls on the floor; Adjacent suites can be combined for added space
