Fully Leased Investment
For Sale
Contact for pricing
2527 Grayson Dr, Denison, TX 75020
2,807 SF office property in growing North Texas market.
Property Size2,807 SF
Lot Size0.69 Acres
Price / SF$201.28
Days on Market159
Property Features for 2527 Grayson Dr
General Information
Standard status
Active
Size
2,807 SF
Class
C
Total Parking Spaces
20
Lot size
0.69 Acres
Property subtype
Retail, Office, Mixed Use
Building Details
Year Built
1986
Year Renovated
2006
Buildings
2
Listing Agency:
Frazier Commercial Real Estate
(940) 566-7005
Listed By:
Tyler Edwards · License #738737
Source:
Crexi
Added: Mar 20
Changed: Aug 24
Last Checked: Aug 24 at 8:49PM
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 Frazier Commercial Real Estate
Investment Insights
Based on property information with market context.
This 2,807 SF office property presents a fully leased investment opportunity in a growing North Texas market. The property is situated on FM 691, offering excellent visibility and convenient access to Denison, Sherman, and the broader Texoma region, being less than one mile from Highway 75. The site includes two buildings on approximately 0.69 acres, featuring paved parking, a fenced yard, and a monument sign. The property has been recently remodeled and is served by public water and sewer. Zoned for commercial use, it accommodates a range of professional or service-oriented tenants. Its proximity to major employers, Texoma Medical Center, and retail destinations such as Starbucks, Hilton Garden Inn, and Urban Air enhances long-term tenant demand. The property is 100% occupied and presents a stable income stream and potential for future appreciation in a high-growth corridor near the Texas-Oklahoma border.
Key Highlights
- Fully leased investment property providing a stable income stream.
- Excellent visibility on FM 691, less than one mile from Highway 75.
- Located in a high‑growth North Texas market near major employers and retail.
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
$46,953
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
8.31%
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%
$939,060
$939.1K
Cap Rate 7%
$670,757
$670.8K
Cap Rate 9%
$521,700
$521.7K
Market Conditions
NOI Build-Up for 2,807 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
$86.2K $30.72/SF
− Vacancy
−$23.6K −$8.42/SF
EGI
$62.6K $22.30/SF
− OpEx
−$15.7K −$5.58/SF
NOI
$47.0K $16.73/SF
Area
Grayson County, TX
Vacancy
27.40%
Lease Rate
$30.72 /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%
$939,060
Cap Rate 7%
$670,757
Cap Rate 9%
$521,700
Alternative Uses
Best Use
Office B
$670.8K
$586.9K – $782.6K
NOI $46,953 @ 7.0% cap · market cap 8.31%
Second Best
Retail
$665.6K
$582.4K – $776.5K
NOI $46,592 @ 7.0% cap · market cap 8.25%
Theoretical Best
Hotel Hospitality
$1.44M
$1.26M – $1.68M
NOI $100,799 @ 7.0% cap · market cap 17.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
40
Businesses Nearby
Explore this area
Business Placement
Demographics for 75020, TX
23,782
Population
10,802
Households
2.2
Avg Household Size
42
Median Age
19%
College-Educated
90%
High-School Grad
61.0 sq mi
ZIP Area
390
Density / Sq Mi
$66,308
Median Household Income
$38,656
Median Earnings
$1,136
Median Rent
$187,200
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?
Mixed-use property - 2,807 SF office property in growing North Texas market.
Where is this mixed-use property located?
The property is located at 2527 Grayson Dr Denison, TX.
What is the asking price?
The asking price for this property is $565,000.
What are key features of this property?
This property features: Fully leased investment property providing a stable income stream.; Excellent visibility on FM 691, less than one mile from Highway 75.; Located in a high‑growth North Texas market near major employers and retail.
