Leased Office Building with
For Sale
$3,650,000
2 N College Avenue, Fayetteville, AR 72701
Multistory office building with three floors and a basement, fully leased through July 2027 with dedicated parking.
Property Size16,998 SF
Days on Market168
Property Features for 2 N College Avenue
General Information
Standard status
Active
Size
16,998 SF
Property subtype
Office
Occupancy
100%
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$30,613
Building Details
Building Size
16,998 SF
Year Built
1905
Stories
3
Listing Agency:
CBRE, Inc-Fayetteville
(479) 200-3457
Listed By:
Hunter Groce · License #SA00083831
Source:
1percentlistsarkansas
Added: Mar 8
Changed: Aug 23
Last Checked: Aug 23 at 9:43AM
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 CBRE, Inc-Fayetteville
Investment Insights
Based on property information with market context.
This multistory commercial office building is fully leased and includes three floors of office space plus a basement. The property is described as meticulously maintained and is generating immediate income under a lease that extends until July 2027.
The building is located at 2 N College Ave in Fayetteville, Arkansas, with significant frontage on College Ave. The remarks also note ample dedicated parking and proximity to the University of Arkansas and the Washington County Courthouse.
The configuration supports a flexible office layout across multiple levels while the existing tenancy provides current income through the stated lease term.
The building is located at 2 N College Ave in Fayetteville, Arkansas, with significant frontage on College Ave. The remarks also note ample dedicated parking and proximity to the University of Arkansas and the Washington County Courthouse.
The configuration supports a flexible office layout across multiple levels while the existing tenancy provides current income through the stated lease term.
Key Highlights
- Fully leased, multistory commercial building with three floors of office space plus a basement
- Lease in place through July 2027, providing immediate income
- Significant frontage on College Ave
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
$256,643
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
7.03%
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%
$5,132,860
$5.1M
Cap Rate 7%
$3,666,329
$3.7M
Cap Rate 9%
$2,851,589
$2.9M
Market Conditions
NOI Build-Up for 16,998 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
$367.2K $21.60/SF
− Vacancy
−$25.0K −$1.47/SF
EGI
$342.2K $20.13/SF
− OpEx
−$85.5K −$5.03/SF
NOI
$256.6K $15.10/SF
Area
Washington County, AR
Vacancy
6.80%
Lease Rate
$21.60 /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%
$5,132,860
Cap Rate 7%
$3,666,329
Cap Rate 9%
$2,851,589
Alternative Uses
Best Use
Office B
$3.67M
$3.21M – $4.28M
NOI $256,643 @ 7.0% cap · market cap 7.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.56M
$3.99M – $5.32M
NOI $319,377 @ 7.0% cap · market cap 8.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,087
Businesses Nearby
Explore this area
Business Placement
Demographics for 72701, AR
48,269
Population
20,057
Households
2.4
Avg Household Size
28
Median Age
42%
College-Educated
93%
High-School Grad
126.0 sq mi
ZIP Area
383
Density / Sq Mi
$50,413
Median Household Income
$27,305
Median Earnings
$973
Median Rent
$323,900
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 - Multistory office building with three floors and a basement, fully leased through July 2027 with dedicated parking.
Where is this office building located?
The property is located at 2 N College Avenue Fayetteville, AR.
What is the asking price?
The asking price for this property is $3,650,000.
What are key features of this property?
This property features: Fully leased, multistory commercial building with three floors of office space plus a basement; Lease in place through July 2027, providing immediate income; Significant frontage on College Ave
