Office Building with Private
New
For Sale
$325,000
214 Hobson Avenue, Hot Springs, AR 71901
Commercial / Industrial, Hot Springs, AR
Property Size2,426 SF
Lot Size0.57 Acres
Price / SF$133.97
Days on Market2
Property Features for 214 Hobson Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
15
Directions
On Central Ave
Subdivision
HOT SPRINGS SCHOOL DISTRICT
Standard status
Active
Size
2,426 SF
Lot size
0.57 Acres
Taxes and HOA fees
Tax Description
BLOCK 2 LOT 3 - 5
Tax Annual Amount
2149
Legal Description
BLOCK 2 LOT 3 - 5
Building Details
Year built
1930
Floors in Building
1
Flooring type
Vinyl, Wood, Tile
Roof type
Composition
Listing Agency:
The Goff Group Real Estate Company
(501) 525-0908
Listed By:
Macy Muncrief
(501) 538-5331
Added: Sep 2
Last Checked: Sep 3 at 2:06PM
MLS# 26035863
Copyright © 2026 Cooperative Arkansas Realtors Multiple Listing Service. 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 2,426-square-foot office property at 214 Hobson Avenue includes an open foyer, multiple private offices, one full bathroom, one half bath, a kitchenette, and a back deck. Vinyl, wood, and tile flooring provide varied interior finishes, while the composition roof dates to a building constructed in 1930. The property is currently used as an attorney’s office.
A large parking lot serves the building, supporting access for clients, customers, and employees. The property is near Oaklawn Racing Casino Resort and minutes from downtown Hot Springs. The layout is identified as suitable for professional office, medical, service-based, retail, and other commercial uses.
A large parking lot serves the building, supporting access for clients, customers, and employees. The property is near Oaklawn Racing Casino Resort and minutes from downtown Hot Springs. The layout is identified as suitable for professional office, medical, service-based, retail, and other commercial uses.
Key Highlights
- 2,426 SF office building on a 0.57‑acre lot
- Multiple private offices with an open foyer
- One full bathroom, one half bath, and a kitchenette
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
$23,293
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
7.17%
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%
$465,860
$465.9K
Cap Rate 7%
$332,757
$332.8K
Cap Rate 9%
$258,811
$258.8K
Market Conditions
NOI Build-Up for 2,426 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
$34.9K $14.40/SF
− Vacancy
−$3.9K −$1.60/SF
EGI
$31.1K $12.80/SF
− OpEx
−$7.8K −$3.20/SF
NOI
$23.3K $9.60/SF
Area
Garland County, AR
Vacancy
11.10%
Lease Rate
$14.40 /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%
$465,860
Cap Rate 7%
$332,757
Cap Rate 9%
$258,811
Alternative Uses
Best Use
Office B
$332.8K
$291.2K – $388.2K
NOI $23,293 @ 7.0% cap · market cap 7.17%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$443.7K
$388.2K – $517.6K
NOI $31,057 @ 7.0% cap · market cap 9.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,190
Businesses Nearby
Explore this area
Business Placement
Demographics for 71901, AR
29,363
Population
14,952
Households
2
Avg Household Size
43
Median Age
26%
College-Educated
88%
High-School Grad
101.9 sq mi
ZIP Area
288
Density / Sq Mi
$52,410
Median Household Income
$35,604
Median Earnings
$797
Median Rent
$173,400
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 - Central Hot Springs office property with flexible rooms, client parking, and a kitchenette.
Where is this office building located?
The property is located at 214 Hobson Avenue Hot Springs, AR.
What is the asking price?
The asking price for this property is $325,000.
What are key features of this property?
This property features: 2,426 SF office building on a 0.57‑acre lot; Multiple private offices with an open foyer; One full bathroom, one half bath, and a kitchenette
