Medical Office Building with Freestanding
For Sale
$875,000
2206 E Central Texas Expressway, Killeen, TX 76543
Medical office building with multiple offices, large lobby, and off-street parking, plus a 40' x 40' freestanding sign.
Property Size6,375 SF
Price / SF$137.25
Days on Market43
Property Features for 2206 E Central Texas Expressway
General Information
Standard status
Active
Size
6,375 SF
Additional Details
Highway Access
Yes
Amenities
large lobby with reception area
Listing Agency:
Jim Wright Company
(254) 526-5117
Listed By:
Jim Wright · License #0181945
(254) 289-3145
Source:
Cornerstone-properties
Added: Jul 28
Changed: Sep 8
Last Checked: Sep 8 at 3:43AM
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 Jim Wright Company
Investment Insights
Based on property information with market context.
This freestanding medical office building includes multiple offices, a large lobby with reception area, and two ADA bathrooms plus two additional bathrooms on the upstairs level. The property is served by substantial off-street parking and features a 40' x 40' freestanding sign fronting I-14.
The building offers visibility and access to I-14 and W.S. Young Drive, supporting convenient arrival for patients, staff, and visitors. With its office layout and accommodating restroom count, the space is designed for day-to-day healthcare or related professional use.
The building offers visibility and access to I-14 and W.S. Young Drive, supporting convenient arrival for patients, staff, and visitors. With its office layout and accommodating restroom count, the space is designed for day-to-day healthcare or related professional use.
Key Highlights
- 1982‑built medical office building with multiple offices and a large lobby with reception area
- 40' x 40' freestanding sign fronting I‑14
- Multiple offices plus 2 ADA bathrooms and 2 additional bathrooms upstairs
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
$67,932
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
7.76%
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%
$1,358,640
$1.4M
Cap Rate 7%
$970,457
$970.5K
Cap Rate 9%
$754,800
$754.8K
Market Conditions
NOI Build-Up for 6,375 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
$122.4K $19.20/SF
− Vacancy
−$9.2K −$1.44/SF
EGI
$113.2K $17.76/SF
− OpEx
−$45.3K −$7.10/SF
NOI
$67.9K $10.66/SF
Area
Killeen, TX
Vacancy
7.50%
Lease Rate
$19.20 /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%
$1,358,640
Cap Rate 7%
$970,457
Cap Rate 9%
$754,800
Alternative Uses
Best Use
Office B
$1.20M
$1.05M – $1.40M
NOI $84,272 @ 7.0% cap · market cap 9.63%
Second Best
Healthcare Medical
$970.5K
$849.2K – $1.13M
NOI $67,932 @ 7.0% cap · market cap 7.76%
Theoretical Best
Office A
$1.53M
$1.34M – $1.79M
NOI $107,186 @ 7.0% cap · market cap 12.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,129
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 76543, TX
30,545
Population
15,300
Households
2
Avg Household Size
30
Median Age
15%
College-Educated
91%
High-School Grad
35.6 sq mi
ZIP Area
858
Density / Sq Mi
$51,239
Median Household Income
$31,712
Median Earnings
$1,099
Median Rent
$140,700
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 - Medical office building with multiple offices, large lobby, and off-street parking, plus a 40' x 40' freestanding sign.
Where is this medical office space located?
The property is located at 2206 E Central Texas Expressway Killeen, TX.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: 1982‑built medical office building with multiple offices and a large lobby with reception area; 40' x 40' freestanding sign fronting I‑14; Multiple offices plus 2 ADA bathrooms and 2 additional bathrooms upstairs
