Multi-Building Office
For Sale
$3,700,000
2040 Shiloh Rd., Tyler, TX 75703
COMMERCIAL - Tyler, TX
Property Size16,586 SF
Lot Size10.02 Acres
Price / SF$223.08
Days on Market1515
Property Features for 2040 Shiloh Rd.
General Information
Property type
Commercial Sale
Property subtype
Other
Lot features
Inside City Limits
Directions
From the intersection of HWY 110 S and Shiloh Rd., head west on Shiloh Rd. for .88 miles to the property on the right.
Standard status
Active
Lot size
10.02 Acres
Taxes and HOA fees
Tax Year
2022
Tax Description
BLOCK 1092 LOT 39, BLOCK 1092 LOT 40
Tax Annual Amount
49880
Legal Description
BLOCK 1092 LOT 39, BLOCK 1092 LOT 40
Building Details
Building materials
Metal Siding, Brick
Listing Agency:
One Rock
(214) 683-0567
Listed By:
Clint Covington · License #0582436
(903) 253-3371
Added: Jun 14, 2022
Changed: Aug 4
Last Checked: Aug 6 at 5:06PM
MLS# 10151455
Copyright © 2026 Greater Tyler Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This office property includes three commercial buildings across approximately 10.018 acres. Two buildings are configured for office use, measuring approximately 11,263 square feet and 5,323 square feet. A separate commercial shop contains roll-up doors, an office area, and storage space within approximately 5,000 square feet. Construction includes metal siding and brick.
The property is situated off Shiloh Road in Tyler, between Highway 110 South and Paluxy Drive. Its combination of office and shop improvements provides a varied commercial configuration on a single tract.
The property is situated off Shiloh Road in Tyler, between Highway 110 South and Paluxy Drive. Its combination of office and shop improvements provides a varied commercial configuration on a single tract.
Key Highlights
- Approximately 10.018 acres with three commercial buildings
- Two office buildings measure approximately 11,263 square feet and 5,323 square feet
- Commercial shop offers approximately 5,000 square feet
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
$200,311
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
5.41%
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%
$4,006,220
$4.0M
Cap Rate 7%
$2,861,586
$2.9M
Cap Rate 9%
$2,225,678
$2.2M
Market Conditions
NOI Build-Up for 16,586 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
$282.6K $17.04/SF
− Vacancy
−$15.5K −$0.94/SF
EGI
$267.1K $16.10/SF
− OpEx
−$66.8K −$4.03/SF
NOI
$200.3K $12.08/SF
Area
Tyler, TX
Vacancy
5.50%
Lease Rate
$17.04 /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%
$4,006,220
Cap Rate 7%
$2,861,586
Cap Rate 9%
$2,225,678
Alternative Uses
Best Use
Office B
$2.86M
$2.50M – $3.34M
NOI $200,311 @ 7.0% cap · market cap 5.41%
Second Best
Industrial
$1.01M
$887.0K – $1.18M
NOI $70,957 @ 7.0% cap · market cap 1.92%
Theoretical Best
Office A
$3.70M
$3.24M – $4.32M
NOI $259,135 @ 7.0% cap · market cap 7.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
622
Businesses Nearby
Explore this area
Business Placement
Demographics for 75703, TX
44,428
Population
20,045
Households
2.2
Avg Household Size
39
Median Age
43%
College-Educated
96%
High-School Grad
55.1 sq mi
ZIP Area
806
Density / Sq Mi
$76,347
Median Household Income
$45,301
Median Earnings
$1,262
Median Rent
$310,500
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 - The site combines two office buildings with a separate commercial shop featuring roll-up doors, office area, and storage.
Where is this office building located?
The property is located at 2040 Shiloh Rd. Tyler, TX.
What is the asking price?
The asking price for this property is $3,700,000.
What are key features of this property?
This property features: Approximately 10.018 acres with three commercial buildings; Two office buildings measure approximately 11,263 square feet and 5,323 square feet; Commercial shop offers approximately 5,000 square feet
