Medical Office Suite with
For Sale
Contact for pricing
21777 Merchants Way Suite 340, Katy, TX 77449
Well-finished suite with multiple rooms, break area, bathroom, lobby, and parking for an established medical setting.
Property Size1,226 SF
Price / SF$387.44
Days on Market75
Property Features for 21777 Merchants Way Suite 340
General Information
Standard status
Active
Size
1,226 SF
Class
B
Property subtype
Office
Occupancy
100%
Building Details
Year Built
2021
Units
1
Tenancy
Multi
Listing Agency:
See Tim Sell Property Group
Listed By:
Heman Wang · License #768544
Source:
Crexi
Added: May 28
Changed: Aug 8
Last Checked: Aug 7 at 4:38AM
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 See Tim Sell Property Group
Investment Insights
Based on property information with market context.
This medical office suite is built with modern finishes and high ceilings, and it is designed for day-to-day patient and staff flow. The interior features four rooms, a dedicated break room, a bathroom, and a lobby. Air conditioning is in place throughout, and the space is presented as ready for its next owner.
The property is located near I-10, in the Katy medical district close to Katy City Center. The site also offers plenty of parking and is surrounded by professional neighboring uses, supporting straightforward access for patients, staff, and visitors.
For buyers seeking an owner-occupied or tenant-investor medical office configuration, the layout provides distinct room space alongside a break room and lobby. The suite is currently described as 100% leased, which may appeal to users looking for immediate income alignment while they evaluate longer-term occupancy plans.
The property is located near I-10, in the Katy medical district close to Katy City Center. The site also offers plenty of parking and is surrounded by professional neighboring uses, supporting straightforward access for patients, staff, and visitors.
For buyers seeking an owner-occupied or tenant-investor medical office configuration, the layout provides distinct room space alongside a break room and lobby. The suite is currently described as 100% leased, which may appeal to users looking for immediate income alignment while they evaluate longer-term occupancy plans.
Key Highlights
- Year built 2021 with modern finishes and high ceilings
- Suite layout includes 4 rooms plus break room, bathroom, and lobby
- Air conditioning included
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
$20,386
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
4.29%
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%
$407,720
$407.7K
Cap Rate 7%
$291,229
$291.2K
Cap Rate 9%
$226,511
$226.5K
Market Conditions
NOI Build-Up for 1,226 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
$36.3K $29.64/SF
− Vacancy
−$2.4K −$1.93/SF
EGI
$34.0K $27.71/SF
− OpEx
−$13.6K −$11.09/SF
NOI
$20.4K $16.63/SF
Area
Fort Bend County, TX
Vacancy
6.50%
Lease Rate
$29.64 /SF/Yr
Expense Ratio
40.00%
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%
$407,720
Cap Rate 7%
$291,229
Cap Rate 9%
$226,511
Alternative Uses
Best Use
Healthcare Medical
$291.2K
$254.8K – $339.8K
NOI $20,386 @ 7.0% cap · market cap 4.29%
Second Best
Office B
$243.8K
$213.3K – $284.4K
NOI $17,063 @ 7.0% cap · market cap 3.59%
Theoretical Best
Multifamily LT 5
$15.27M
$13.36M – $17.82M
NOI $1,069,107 @ 7.0% cap · market cap 225.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
155
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77449, TX
128,180
Population
40,773
Households
3.1
Avg Household Size
32
Median Age
28%
College-Educated
86%
High-School Grad
27.0 sq mi
ZIP Area
4,747
Density / Sq Mi
$85,934
Median Household Income
$42,015
Median Earnings
$1,755
Median Rent
$236,400
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?
Medical Office Space - Well-finished suite with multiple rooms, break area, bathroom, lobby, and parking for an established medical setting.
Where is this medical office space located?
The property is located at 21777 Merchants Way Suite 340 Katy, TX.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: Year built 2021 with modern finishes and high ceilings; Suite layout includes 4 rooms plus break room, bathroom, and lobby; Air conditioning included
