Single-Story Corner Retail/Office
For Sale
$575,000
221223 Locust Street, Denton, TX 76201
Fully leased corner property with storefront visibility, on-street and rear parking, and active leases extending through mid-2027.
Property Size2,900 SF
Price / SF$198.28
Days on Market57
Property Features for 221223 Locust Street
General Information
Standard status
Active
Size
2,900 SF
Property subtype
Office
Zoning
DC-G
Occupancy
100%
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$6,469
Amenities
Electric, A/C - Other
3
Building Details
Year Built
1965
Stories
1
Tenancy
Multi
Listing Agency:
INC Realty, LLC
(972) 351-1095
Listed By:
Melissa Cooper · License #0743420
Source:
Xome
Added: Jun 14
Changed: Aug 8
Last Checked: Aug 9 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 INC Realty, LLC
Investment Insights
Based on property information with market context.
The property is a single-story commercial building configured for street-facing retail and professional use, with an attractive storefront presence and convenient customer parking. The building is fully leased, with two established local businesses in place under active leases extending through approximately mid-2027. The current tenancy includes Brave Combo, a nationally recognized Denton institution.
Situated on a highly visible corner at N. Locust Street and W. McKinney Street, the property is described as being about one block from the Historic Denton Square. The surrounding area includes restaurants, retail shops, entertainment venues, and professional offices, supporting a steady pattern of downtown pedestrian activity.
Positioned within the DC-G (Downtown Code – General) zoning district, the property offers flexibility for a range of downtown-compatible commercial uses, including office, retail, studio, creative, professional services, and other uses subject to City of Denton approval. For buyers or investors seeking a downtown asset that is already occupied, the combination of corner visibility, storefront character, and existing lease terms provides an immediate operating platform. For tenants looking for an established street presence in Downtown Denton, the building’s layout and parking options are practical for customer-facing operations.
Situated on a highly visible corner at N. Locust Street and W. McKinney Street, the property is described as being about one block from the Historic Denton Square. The surrounding area includes restaurants, retail shops, entertainment venues, and professional offices, supporting a steady pattern of downtown pedestrian activity.
Positioned within the DC-G (Downtown Code – General) zoning district, the property offers flexibility for a range of downtown-compatible commercial uses, including office, retail, studio, creative, professional services, and other uses subject to City of Denton approval. For buyers or investors seeking a downtown asset that is already occupied, the combination of corner visibility, storefront character, and existing lease terms provides an immediate operating platform. For tenants looking for an established street presence in Downtown Denton, the building’s layout and parking options are practical for customer-facing operations.
Key Highlights
- Fully leased, income‑producing corner commercial property in downtown Denton with active leases extending through approximately mid‑2027
- Single‑story building with approximately 2,900 SF at the corner of N. Locust St and W. McKinney St
- Zoned DC‑G (Downtown Code – General) with flexibility for office, retail, studio, creative, professional services, and other downtown‑compatible uses (subject to City approval)
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
—
—
no second resolved use
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
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
461
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 building - Fully leased corner property with storefront visibility, on-street and rear parking, and active leases extending through mid-2027.
Where is this office building located?
The property is located at 221223 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: Fully leased, income‑producing corner commercial property in downtown Denton with active leases extending through approximately mid‑2027; Single‑story building with approximately 2,900 SF at the corner of N. Locust St and W. McKinney St; Zoned DC‑G (Downtown Code – General) with flexibility for office, retail, studio, creative, professional services, and other downtown‑compatible uses (subject to City approval)
