Office Building with Covered
For Sale
$489,000
19368 Highway 36, Covington, LA 70433
HC-1 zoning, porch access, central air and heat, and a layout supporting current office operations.
Property Size2,360 SF
Price / SF$207.20
Days on Market131
Property Features for 19368 Highway 36
General Information
Standard status
Active
Size
2,360 SF
Zoning
HC-1
Amenities
break room
half baths
open workspace
conference room
reception room
carport
back shed
porch
ramps
alarm
central air and heat
Building Details
Construction
wood external, piers and beam
Listing Agency:
Community RealEstate LLC
(985) 966-7280
Listed By:
Carolyn Keen
(985) 966-7280
Source:
Exprealty
Added: Apr 23
Changed: Aug 30
Last Checked: Aug 30 at 10:13PM
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 Community RealEstate LLC
Investment Insights
Based on property information with market context.
This office building is currently configured with 7 office rooms, an open workspace, conference room, reception area, break room, and 2 half baths. The property includes a wood exterior, pier-and-beam construction, metal roof, central air and heat, building alarm, 2 ramps, front and side porches, a carport, and a rear shed.
The building is visible from Highway 36 and offers convenient access with plenty of street parking. HC-1 zoning is identified, and the described use range includes office, bank, drive-in restaurant, clubs, veterinary clinic, and lodging-related applications such as apartments, hotel, and multifamily.
The building is visible from Highway 36 and offers convenient access with plenty of street parking. HC-1 zoning is identified, and the described use range includes office, bank, drive-in restaurant, clubs, veterinary clinic, and lodging-related applications such as apartments, hotel, and multifamily.
Key Highlights
- Current office layout with 7 office rooms, open workspace, conference room, reception, break room, and 2 half baths
- HC‑1 zoning with described uses including office, bank, restaurant, veterinary clinic, and lodging
- Visible from Highway 36 with easy access and plenty of street parking
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
$26,779
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
5.48%
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%
$535,580
$535.6K
Cap Rate 7%
$382,557
$382.6K
Cap Rate 9%
$297,544
$297.5K
Market Conditions
NOI Build-Up for 2,360 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
$46.2K $19.56/SF
− Vacancy
−$10.5K −$4.43/SF
EGI
$35.7K $15.13/SF
− OpEx
−$8.9K −$3.78/SF
NOI
$26.8K $11.35/SF
Area
St. Tammany County, LA
Vacancy
22.65%
Lease Rate
$19.56 /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%
$535,580
Cap Rate 7%
$382,557
Cap Rate 9%
$297,544
Alternative Uses
Best Use
Office B
$382.6K
$334.7K – $446.3K
NOI $26,779 @ 7.0% cap · market cap 5.48%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$25.44M
$22.26M – $29.68M
NOI $1,780,875 @ 7.0% cap · market cap 364.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
775
Businesses Nearby
Explore this area
Business Placement
Demographics for 70433, LA
41,423
Population
18,712
Households
2.2
Avg Household Size
42
Median Age
45%
College-Educated
93%
High-School Grad
48.7 sq mi
ZIP Area
851
Density / Sq Mi
$79,354
Median Household Income
$47,406
Median Earnings
$1,373
Median Rent
$316,200
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 building - HC-1 zoning, porch access, central air and heat, and a layout supporting current office operations.
Where is this office building located?
The property is located at 19368 Highway 36 Covington, LA.
What is the asking price?
The asking price for this property is $489,000.
What are key features of this property?
This property features: Current office layout with 7 office rooms, open workspace, conference room, reception, break room, and 2 half baths; HC‑1 zoning with described uses including office, bank, restaurant, veterinary clinic, and lodging; Visible from Highway 36 with easy access and plenty of street parking
