Building Details

Year built 1988

Floors in Building 1

Listing Agency: TMK Properties Show Phone

Listed By: Randall Ingle Show Phone

Added: Mar 30, 2025 Changed: Sep 3 Last Checked: Sep 27 at 2:06PM

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MLS# 25012134

Copyright © 2026 Cooperative Arkansas Realtors Multiple Listing Service. 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.

This 1,500-square-foot auto shop sits on 0.83 acres and includes a 30-by-50-foot shop area, two offices, and a high-ceiling bay. The property is fully fenced, with space designated for parking and storage. Built in 1988, the facility can accommodate an auto repair operation or another commercial business.

The property is located at 25727 Neighborhood Rd in Hensley, Arkansas, with frontage along Hwy 167. A two-sided billboard conveys with the property; the billboard is owned or leased by a local bank. The combination of an existing shop, office space, secured yard, and highway exposure provides a defined commercial setup.

Key Highlights

• 1,500‑square‑foot shop on 0.83 acres
• 30x50 shop with two offices and a high‑ceiling bay
• Fully fenced property with parking and storage space

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

$8,780

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

5.85%

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%

$175,600 $175.6K

Cap Rate 7%

$125,429 $125.4K

Cap Rate 9%

$97,556 $97.6K

Market Conditions

NOI Build-Up for 1,500 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

$14.4K $9.60/SF

− Vacancy

−$893 −$0.60/SF

EGI

$13.5K $9.00/SF

− OpEx

−$4.7K −$3.15/SF

NOI

$8.8K $5.85/SF

Area

Saline County, AR

Vacancy

6.20%

Lease Rate

$9.60 /SF/Yr

Expense Ratio

35.00%

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%

$175,600

Cap Rate 7%

$125,429

Cap Rate 9%

$97,556

Alternative Uses

Best Use

Retail

$234.9K

$205.6K – $274.1K (±1% cap)

NOI $16,446 @ 7.0% cap · market cap 10.96%

Second Best

Flex RnD

$125.4K

$109.8K – $146.3K (±1% cap)

NOI $8,780 @ 7.0% cap · market cap 5.85%

Theoretical Best

Office A

$327.3K

$286.4K – $381.9K (±1% cap)

NOI $22,914 @ 7.0% cap · market cap 15.28%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Auto shops

Lease Details

1

Service bays

Yes

Fenced yard

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

5

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 72065, AR

5,305

Population

2,370

Households

2.2

Avg Household Size

42

Median Age

25%

College-Educated

90%

High-School Grad

62.6 sq mi

ZIP Area

85

Density / Sq Mi

$68,636

Median Household Income

$36,131

Median Earnings

$955

Median Rent

$191,600

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this auto shops located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Auto shop - Existing offices and a high-ceiling service bay support automotive or commercial use.

Where is this auto shop located?

The property is located at 25727 Neighborhood Rd Hensley, AR.

What is the asking price?

The asking price for this property is $150,000.

What are key features of this property?

This property features: 1,500‑square‑foot shop on 0.83 acres; 30x50 shop with two offices and a high‑ceiling bay; Fully fenced property with parking and storage space