South Tyler Commercial
For Sale
Contact for pricing
2040 Shiloh Rd, Tyler, TX 75703
Commercial property with office buildings and shop in South Tyler.
Property Size21,586 SF
Lot Size10.00 Acres
Price / SF$171.41
Days on Market1516
Property Features for 2040 Shiloh Rd
General Information
Standard status
Active
Size
21,586 SF
Class
B
Lot size
10.00 Acres
Property subtype
Office
Zoning
Commercial
Lease Type
NNN
Building Details
Buildings
3
Listing Agency:
One Rock
(214) 683-0567
Listed By:
Chris Wiesinger · License #TX 9007381
Source:
Crexi
Added: Jun 16, 2022
Changed: Aug 8
Last Checked: Jul 15 at 8:00PM
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 One Rock
Investment Insights
Based on property information with market context.
This commercial property is located in South Tyler, situated off Shiloh Rd between HWY 110 S and Paluxy Dr. The property encompasses approximately 10 acres and includes three commercial buildings. Two of the buildings are purposed as commercial office space, measuring approximately 11,263 square feet and 5,323 square feet, respectively. The third building is a commercial shop, featuring rollup doors and an office/storage area, with an approximate size of 5,000 square feet. The property presents opportunities for a growing business, investment, expansion, development, or leasing to multiple tenants.
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
$260,696
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
7.05%
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%
$5,213,920
$5.2M
Cap Rate 7%
$3,724,229
$3.7M
Cap Rate 9%
$2,896,622
$2.9M
Market Conditions
NOI Build-Up for 21,586 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
$367.8K $17.04/SF
− Vacancy
−$20.2K −$0.94/SF
EGI
$347.6K $16.10/SF
− OpEx
−$86.9K −$4.03/SF
NOI
$260.7K $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%
$5,213,920
Cap Rate 7%
$3,724,229
Cap Rate 9%
$2,896,622
Alternative Uses
Best Use
Office B
$3.72M
$3.26M – $4.34M
NOI $260,696 @ 7.0% cap · market cap 7.05%
Second Best
Warehouse
$1.60M
$1.40M – $1.87M
NOI $112,136 @ 7.0% cap · market cap 3.03%
Theoretical Best
Office A
$4.82M
$4.22M – $5.62M
NOI $337,253 @ 7.0% cap · market cap 9.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
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 - Commercial property with office buildings and shop in South Tyler.
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.
