Two-Story Office
For Sale
Contact for pricing
2121 North 550 West, Provo, UT 84604
Two-story office building with fiber internet, 200 parking stalls, and a month-to-month leased unit.
Property Size50,120 SF
Lot Size2.50 Acres
Price / SF$247.41
Days on Market51
Property Features for 2121 North 550 West
General Information
Standard status
Active
Size
50,120 SF
Class
B
Total Parking Spaces
200
Lot size
2.50 Acres
Property subtype
Office
Zoning
PUD
Investment Type
Owner/User
Building Details
Year Built
1984
Year Renovated
2019
Buildings
1
Stories
2
Units
2
Listing Agency:
Commercial Real Estate Specialists
Listed By:
Justin Welch · License #UT 6561454-PB00
(801) 876-6070
Source:
Crexi
Added: Jul 17
Changed: Aug 8
Last Checked: Sep 2 at 6:27PM
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 Commercial Real Estate Specialists
Investment Insights
Based on property information with market context.
This two-story office building was built in 1984 and underwent a full building remodel in 2019. The property totals 50,120 square feet and includes a leased unit of 7,171 square feet, currently held month-to-month. The tenant, Internexus Provo, LLC, began its lease on January 1, 2021 and is requesting renewal, while the landlord has maintained the unit on a month-to-month basis for the benefit of a new buyer.
Parking is provided with 200 stalls, and fiber internet is available. The property is located on a 2.5-acre site and is zoned PUD (Parkway Village).
The offering includes an income component through the existing month-to-month tenancy, with flexibility for the buyer to either occupy or pursue a renewed lease relationship with the tenant.
Parking is provided with 200 stalls, and fiber internet is available. The property is located on a 2.5-acre site and is zoned PUD (Parkway Village).
The offering includes an income component through the existing month-to-month tenancy, with flexibility for the buyer to either occupy or pursue a renewed lease relationship with the tenant.
Key Highlights
- Two‑story office building built in 1984 with a full building remodel completed in 2019
- 50,120 SF building on a 2.5‑acre lot in PUD (Parkway Village)
- 200 parking stalls for tenant and visitor 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
$633,966
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
5.11%
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%
$12,679,320
$12.7M
Cap Rate 7%
$9,056,657
$9.1M
Cap Rate 9%
$7,044,067
$7.0M
Market Conditions
NOI Build-Up for 50,120 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
$1.10M $21.96/SF
− Vacancy
−$255.3K −$5.09/SF
EGI
$845.3K $16.87/SF
− OpEx
−$211.3K −$4.22/SF
NOI
$634.0K $12.65/SF
Area
Provo, UT
Vacancy
23.20%
Lease Rate
$21.96 /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%
$12,679,320
Cap Rate 7%
$9,056,657
Cap Rate 9%
$7,044,067
Alternative Uses
Best Use
Office B
$9.06M
$7.92M – $10.57M
NOI $633,966 @ 7.0% cap · market cap 5.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$13.82M
$12.10M – $16.13M
NOI $967,606 @ 7.0% cap · market cap 7.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
264
Businesses Nearby
Explore this area
Business Placement
Demographics for 84604, UT
45,503
Population
13,285
Households
3.4
Avg Household Size
26
Median Age
56%
College-Educated
98%
High-School Grad
94.8 sq mi
ZIP Area
480
Density / Sq Mi
$74,522
Median Household Income
$16,799
Median Earnings
$1,128
Median Rent
$520,500
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two-story office building with fiber internet, 200 parking stalls, and a month-to-month leased unit.
Where is this office building located?
The property is located at 2121 North 550 West Provo, UT.
What is the asking price?
The asking price for this property is $12,400,000.
What are key features of this property?
This property features: Two‑story office building built in 1984 with a full building remodel completed in 2019; 50,120 SF building on a 2.5‑acre lot in PUD (Parkway Village); 200 parking stalls for tenant and visitor parking
