Freestanding Office Building For
For Sale
$395,000
2620 S Kentucky St, Amarillo, TX 79109
Freestanding office building near I-40 and S. Georgia St.
Property Size2,376 SF
Days on Market183
Property Features for 2620 S Kentucky St
General Information
Standard status
Active
Size
2,376 SF
Class
B
Property subtype
Office
Building Details
Building Size
2,376 SF
Year Built
2012
Listing Agency:
WestMark Commercial | TCN Worldwide
Listed By:
Crystal H. Edwards · License #TX #0595583-SA
(806) 786-7374
Source:
Westmarkcommercial
Added: Mar 6
Changed: Sep 3
Last Checked: Sep 5 at 5:13AM
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 WestMark Commercial | TCN Worldwide
Investment Insights
Based on property information with market context.
This freestanding office building is located less than a mile from I-40, just off S. Georgia St., at the corner of SW 27th and Kentucky. The building is currently configured for two tenants but could be converted to a single-tenant space. Parking lots are situated on either end of the property. The surrounding area includes businesses such as MarketStreet, Happy State Bank, Walgreens, and Toot N Totum, as well as various retail and restaurant options, including Chick-fil-A.
Key Highlights
- Prime Location: Less than a mile from I‑40 and just off S. Georgia St.
- High‑Traffic Area: Situated near MarketStreet, Happy State Bank, Walgreens, Toot N Totum, and Chick‑fil‑A.
- Flexible Tenant Configuration: Easily convertible from a 2‑tenant to a single‑tenant building.
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
$27,265
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
6.90%
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%
$545,300
$545.3K
Cap Rate 7%
$389,500
$389.5K
Cap Rate 9%
$302,944
$302.9K
Market Conditions
NOI Build-Up for 2,376 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
$42.8K $18.00/SF
− Vacancy
−$6.4K −$2.70/SF
EGI
$36.4K $15.30/SF
− OpEx
−$9.1K −$3.82/SF
NOI
$27.3K $11.48/SF
Area
Amarillo, TX
Vacancy
15.00%
Lease Rate
$18.00 /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%
$545,300
Cap Rate 7%
$389,500
Cap Rate 9%
$302,944
Alternative Uses
Best Use
Office B
$389.5K
$340.8K – $454.4K
NOI $27,265 @ 7.0% cap · market cap 6.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$530.5K
$464.2K – $618.9K
NOI $37,134 @ 7.0% cap · market cap 9.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,198
Businesses Nearby
Explore this area
Business Placement
Demographics for 79109, TX
42,509
Population
20,308
Households
2.1
Avg Household Size
39
Median Age
33%
College-Educated
93%
High-School Grad
10.3 sq mi
ZIP Area
4,127
Density / Sq Mi
$68,579
Median Household Income
$41,410
Median Earnings
$945
Median Rent
$217,600
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 - Freestanding office building near I-40 and S. Georgia St.
Where is this office building located?
The property is located at 2620 S Kentucky St Amarillo, TX.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: Prime Location: Less than a mile from I‑40 and just off S. Georgia St.; High‑Traffic Area: Situated near MarketStreet, Happy State Bank, Walgreens, Toot N Totum, and Chick‑fil‑A.; Flexible Tenant Configuration: Easily convertible from a 2‑tenant to a single‑tenant building.
