Office Building Built in
For Sale
$599,000
3505 Johnson ST, Fort Smith, AR 72904
COMMERCIAL - Fort Smith, AR
Property Size5,088 SF
Lot Size1.00 Acres
Price / SF$117.73
Days on Market520
Property Features for 3505 Johnson ST
General Information
Property type
Commercial Sale
Property subtype
Office
Directions
From Midland Blvd turn on Johnson St and go three blocks, the property is on the left. From Kelley Hwy turn on to N Albert Pike then left on Johnson Street, the property will be on the right.
Standard status
Active
APN
15224-0016-00021-00
Size
5,088 SF
Lot size
1.00 Acres
Taxes and HOA fees
Tax Description
LOT 16 BLK 21
Legal Description
LOT 16 BLK 21
Building Details
Year built
2007
Flooring type
Carpet, Vinyl
Listing Agency:
The Heritage Group Real Estate - Barling
(479) 806-5955
Listed By:
Alyssia Beneux · License #SA00089966
(479) 883-8301
Added: Mar 19, 2025
Changed: Aug 4
Last Checked: Aug 20 at 11:06PM
MLS# 1079573
Copyright © 2026 Western River Valley 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.
Offered for sale is a 5,088-square-foot office building constructed in 2007 by Gateway Construction. The property is situated on a 1.0036-acre lot, providing a substantial site alongside the building.
Located at 3505 Johnson ST in Fort Smith, Arkansas 72904 (Sebastian County), the building offers a straightforward, office-focused configuration suitable for buyers evaluating commercial real estate with on-site acreage.
Located at 3505 Johnson ST in Fort Smith, Arkansas 72904 (Sebastian County), the building offers a straightforward, office-focused configuration suitable for buyers evaluating commercial real estate with on-site acreage.
Key Highlights
- Large commercial building with 5,088 sq ft
- Built in 2007 by Gateway Construction
- Sits on 1 acre
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
$50,829
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
8.49%
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%
$1,016,580
$1.0M
Cap Rate 7%
$726,129
$726.1K
Cap Rate 9%
$564,767
$564.8K
Market Conditions
NOI Build-Up for 5,088 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
$73.3K $14.40/SF
− Vacancy
−$5.5K −$1.08/SF
EGI
$67.8K $13.32/SF
− OpEx
−$16.9K −$3.33/SF
NOI
$50.8K $9.99/SF
Area
Sebastian County, AR
Vacancy
7.50%
Lease Rate
$14.40 /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%
$1,016,580
Cap Rate 7%
$726,129
Cap Rate 9%
$564,767
Alternative Uses
Best Use
Office B
$726.1K
$635.4K – $847.2K
NOI $50,829 @ 7.0% cap · market cap 8.49%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$1.08M
$947.2K – $1.26M
NOI $75,777 @ 7.0% cap · market cap 12.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
337
Businesses Nearby
Explore this area
Business Placement
Demographics for 72904, AR
22,402
Population
8,406
Households
2.7
Avg Household Size
33
Median Age
7%
College-Educated
67%
High-School Grad
13.7 sq mi
ZIP Area
1,635
Density / Sq Mi
$40,357
Median Household Income
$28,519
Median Earnings
$817
Median Rent
$108,200
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 - For sale office building on one acre, built in 2007, totaling 5,088 square feet.
Where is this office building located?
The property is located at 3505 Johnson ST Fort Smith, AR.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: Large commercial building with 5,088 sq ft; Built in 2007 by Gateway Construction; Sits on 1 acre
