Single-Story Corner Office
For Sale
$575,000
221-223 N Locust Street, Denton, TX 76201
SINGLE_FAMILY - Denton, TX
Property Size2,900 SF
Lot Size0.12 Acres
Price / SF$198.28
Days on Market47
Property Features for 221-223 N Locust Street
General Information
Property type
Residential
Property subtype
Office
Zoning description
DC-G
Parking features
On Street, Parking Lot
Subdivision
O T Denton
Lot features
Historic District
Directions
From the Historic Denton Square, travel north one block on N. Locust Street. Property is located on the northwest corner of N. Locust Street and W. McKinney Street. GPS Friendly.
Standard status
Active
APN
R32923
Lot size
0.12 Acres
Taxes and HOA fees
Tax Description
O T DENTON BLK 16 LOT 3(N50' OF S102' & W12'
Tax Annual Amount
6469
Legal Description
O T DENTON BLK 16 LOT 3(N50' OF S102' & W12'
Utilities
Sewer type
Public Sewer
Heating system
Natural Gas, Central
Cooling system
Central Air, Electric
Water source
Public
Building Details
Year built
1965
Floors in Building
1
Number of units
2
Flooring type
Laminate, Carpet
Building materials
Brick
Roof type
Metal
Listing Agency:
INC Realty, LLC
(972) 351-1095
Listed By:
Melissa Cooper · License #0743420
(972) 351-1095
Added: Jun 26
Changed: Aug 11
Last Checked: Aug 11 at 11:06PM
MLS# 21312731
Copyright © 2026 North Texas Real Estate Information Systems, Inc. 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.
Single-story office building (brick construction with metal roof) offering approximately 2,900 square feet and a corner presence on N. Locust Street and W. McKinney Street. The property is 100% occupied by two established local businesses, with active leases extending through approximately mid-2027. Existing floor finishes include laminate and carpet. Heating is provided by natural gas central systems, and cooling is electric with central air.
The building is positioned within the DC-G (Downtown Code - General) zoning district in Downtown Denton. The tenancy supports immediate income, while the mix of downtown-compatible uses includes office, retail, studio, creative, professional services, and other uses subject to City of Denton approval. The site offers on-street parking plus additional rear parking, with public water and public sewer services.
Built in 1965 on a 0.124-acre lot, the property is located about one block from the Historic Denton Square and is surrounded by restaurants, retail shops, entertainment venues, and professional offices.
The building is positioned within the DC-G (Downtown Code - General) zoning district in Downtown Denton. The tenancy supports immediate income, while the mix of downtown-compatible uses includes office, retail, studio, creative, professional services, and other uses subject to City of Denton approval. The site offers on-street parking plus additional rear parking, with public water and public sewer services.
Built in 1965 on a 0.124-acre lot, the property is located about one block from the Historic Denton Square and is surrounded by restaurants, retail shops, entertainment venues, and professional offices.
Key Highlights
- Approximately 2,900 SF single‑story office building on a 0.124‑acre lot
- 100% occupied by two local businesses with leases extending through approximately mid‑2027
- Corner location at N. Locust Street and W. McKinney Street with high street visibility
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
$45,512
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
7.92%
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%
$910,240
$910.2K
Cap Rate 7%
$650,171
$650.2K
Cap Rate 9%
$505,689
$505.7K
Market Conditions
NOI Build-Up for 2,900 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
$78.3K $27.00/SF
− Vacancy
−$17.6K −$6.08/SF
EGI
$60.7K $20.93/SF
− OpEx
−$15.2K −$5.23/SF
NOI
$45.5K $15.69/SF
Area
Denton, TX
Vacancy
22.50%
Lease Rate
$27.00 /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%
$910,240
Cap Rate 7%
$650,171
Cap Rate 9%
$505,689
Alternative Uses
Best Use
Office B
$650.2K
$568.9K – $758.5K
NOI $45,512 @ 7.0% cap · market cap 7.92%
Second Best
Retail
$606.9K
$531.1K – $708.1K
NOI $42,484 @ 7.0% cap · market cap 7.39%
Theoretical Best
Office A
$906.1K
$792.8K – $1.06M
NOI $63,424 @ 7.0% cap · market cap 11.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
95
Businesses Nearby
Explore this area
Business Placement
Demographics for 76201, TX
27,610
Population
13,087
Households
2.1
Avg Household Size
26
Median Age
46%
College-Educated
95%
High-School Grad
5.5 sq mi
ZIP Area
5,020
Density / Sq Mi
$37,863
Median Household Income
$18,308
Median Earnings
$1,128
Median Rent
$250,200
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 units - Fully leased single-story corner office building with brick construction, metal roof, and street-visible storefront presence.
Where is this office units located?
The property is located at 221-223 N Locust Street Denton, TX.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: Approximately 2,900 SF single‑story office building on a 0.124‑acre lot; 100% occupied by two local businesses with leases extending through approximately mid‑2027; Corner location at N. Locust Street and W. McKinney Street with high street visibility
