Office Building with Warehouse
For Sale
$3,206,610
2122 East Governors Circle, Houston, TX 77092
Two-story office building with warehouse and excellent highway access.
Property Size21,420 SF
Price / SF$161.62
Days on Market182
Property Features for 2122 East Governors Circle
General Information
Standard status
Active
Size
21,420 SF
Class
B
Property subtype
Office
Building Details
Building Size
21,420 SF
Listing Agency:
Zann Commercial Brokerage, Inc.
Listed By:
Jason C. Kieschnick · License #TX #512911
(832) 689-0105
Source:
Zann
Added: Mar 6
Changed: Sep 3
Last Checked: Sep 4 at 5:27AM
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 Zann Commercial Brokerage, Inc.
Investment Insights
Based on property information with market context.
This two-story office building features approximately 19,840 square feet of office space and 1,580 square feet of warehouse space. The property provides 95 parking spaces and monument signage. Conveniently located just outside of the North Loop, the building offers excellent access to 610, 290, I-10, and I-45. The building can be utilized for general office, medical office, or any other use that could benefit from all this building offers. Please contact listing broker for more details.
Key Highlights
- Excellent access to 610, 290, I‑10, and I‑45
- Approximately 19,840 square feet of office space
- Approximately 1,580 square feet of warehouse space
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
$231,414
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
7.22%
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%
$4,628,280
$4.6M
Cap Rate 7%
$3,305,914
$3.3M
Cap Rate 9%
$2,571,267
$2.6M
Market Conditions
NOI Build-Up for 19,840 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
$428.5K $21.60/SF
− Vacancy
−$120.0K −$6.05/SF
EGI
$308.6K $15.55/SF
− OpEx
−$77.1K −$3.89/SF
NOI
$231.4K $11.66/SF
Area
Houston, TX
Vacancy
28.00%
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%
$4,628,280
Cap Rate 7%
$3,305,914
Cap Rate 9%
$2,571,267
Alternative Uses
Best Use
Office B
$3.31M
$2.89M – $3.86M
NOI $231,414 @ 7.0% cap · market cap 7.22%
Second Best
Warehouse
$2.09M
$1.83M – $2.43M
NOI $146,029 @ 7.0% cap · market cap 4.55%
Theoretical Best
Office A
$5.10M
$4.46M – $5.95M
NOI $357,120 @ 7.0% cap · market cap 11.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,983
Businesses Nearby
Explore this area
Business Placement
Demographics for 77092, TX
34,903
Population
16,158
Households
2.2
Avg Household Size
34
Median Age
27%
College-Educated
75%
High-School Grad
8.1 sq mi
ZIP Area
4,309
Density / Sq Mi
$56,741
Median Household Income
$34,895
Median Earnings
$1,228
Median Rent
$222,800
Median Home Value
Market
Vacancy Rate% for Office in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two-story office building with warehouse and excellent highway access.
Where is this office building located?
The property is located at 2122 East Governors Circle Houston, TX.
What is the asking price?
The asking price for this property is $3,206,610.
What are key features of this property?
This property features: Excellent access to 610, 290, I‑10, and I‑45; Approximately 19,840 square feet of office space; Approximately 1,580 square feet of warehouse space
