Commercial Land with Office
For Sale
$525,000
2655 W Park Avenue, Gray, LA 70359
Commercial Sale, Gray, LA
Property Size2,144 SF
Lot Size12.43 Acres
Price / SF$244.87
Days on Market1601
Property Features for 2655 W Park Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Hedgeford Plnt
Directions
North of US Hwy. 90 on LA Hwy 24
Standard status
Active
Size
2,144 SF
Lot size
12.43 Acres
Taxes and HOA fees
Tax Description
Lot 42 & Upper lot 43 links of lot 41 Hedgeford Plantation
Legal Description
Lot 42 & Upper lot 43 links of lot 41 Hedgeford Plantation
Utilities
Utilities
Natural Gas Available
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Floors in Building
1
Flooring type
Tile - Ceramic, Carpet - Full
Building materials
Brick
Additional Structures
Storage
Listing Agency:
KELLER WILLIAMS REALTY BAYOU P
(985) 262-4400
Listed By:
Hank Babin · License #37498
(985) 804-9991
Added: Apr 12, 2022
Changed: Aug 19
Last Checked: Aug 29 at 12:06PM
MLS# 165030
Copyright © 2026 Bayou Board of Realtors. 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 12.43-acre commercial land tract includes a 2,144-square-foot brick structure with ceramic tile and carpet flooring, central heating, and central air. The building is presently configured as a residence but can be adapted for office use, providing an existing improvement on the site. Natural gas is available, and the property has a public water source.
The tract fronts LA Highway 24, also identified as West Park Ave., approximately two miles north of U.S. Highway 90, designated as Future I-49. More than two-thirds of the acreage is within FEMA Flood Zone X. The property is in Gray, Louisiana, within the Houma-Thibodaux MSA and South Louisiana’s energy and industrial corridor.
The tract fronts LA Highway 24, also identified as West Park Ave., approximately two miles north of U.S. Highway 90, designated as Future I-49. More than two-thirds of the acreage is within FEMA Flood Zone X. The property is in Gray, Louisiana, within the Houma-Thibodaux MSA and South Louisiana’s energy and industrial corridor.
Key Highlights
- 12.43‑acre commercial land tract along LA Highway 24 (West Park Ave.)
- 2,144 SF brick structure currently configured as a residence and adaptable for office use
- Approximately two miles north of U.S. Highway 90 (Future I‑49)
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
$33,604
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
6.40%
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%
$672,080
$672.1K
Cap Rate 7%
$480,057
$480.1K
Cap Rate 9%
$373,378
$373.4K
Market Conditions
NOI Build-Up for 2,144 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
$57.9K $27.00/SF
− Vacancy
−$13.1K −$6.10/SF
EGI
$44.8K $20.90/SF
− OpEx
−$11.2K −$5.22/SF
NOI
$33.6K $15.67/SF
Area
Terrebonne County, LA
Vacancy
22.60%
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%
$672,080
Cap Rate 7%
$480,057
Cap Rate 9%
$373,378
Alternative Uses
Best Use
Office B
$480.1K
$420.1K – $560.1K
NOI $33,604 @ 7.0% cap · market cap 6.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$591.0K
$517.1K – $689.5K
NOI $41,371 @ 7.0% cap · market cap 7.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
27
Businesses Nearby
Explore this area
Business Placement
Demographics for 70359, LA
9,591
Population
3,768
Households
2.5
Avg Household Size
35
Median Age
14%
College-Educated
82%
High-School Grad
14.4 sq mi
ZIP Area
666
Density / Sq Mi
$54,139
Median Household Income
$33,058
Median Earnings
$1,119
Median Rent
$161,300
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?
Commercial land - Existing improvements provide a potential office base for commercial users and future site expansion.
Where is this commercial land located?
The property is located at 2655 W Park Avenue Gray, LA.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: 12.43‑acre commercial land tract along LA Highway 24 (West Park Ave.); 2,144 SF brick structure currently configured as a residence and adaptable for office use; Approximately two miles north of U.S. Highway 90 (Future I‑49)
