Ground-Floor Office
New
For Sale
$538,650
3624 Shannon Road, Durham, NC 27707
Ground-floor office space in an OI-zoned professional office park.
Property Size12,600 SF
Price / SF$244.29
Days on Market6
Property Features for 3624 Shannon Road
General Information
Standard status
Active
Size
12,600 SF
Class
B
Property subtype
OFC
Zoning
OI
Additional Details
Floor
Ground Floor
Asking Price
$538,650
Highway Access
Yes
Building Details
Building Size
12,600 SF
Year Built
2004
Stories
1
Tenancy
Single
Owner Occupied
No
Listing Agency:
Keller Williams Elite Realty
Listed By:
Vandan Gandhi · License ##247850
(919) 475-5769
Source:
Realnex
Added: Sep 10
Changed: Sep 14
Last Checked: Sep 14 at 2:31PM
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 Keller Williams Elite Realty
Investment Insights
Based on property information with market context.
Suite 101 is a ground-level office condominium within Building B at Westover Place Office Park. The unit contains approximately 2,205 SF and sits on a 1.73-acre office park parcel. OI zoning, defined as Office & Institutional, supports professional, engineering, and institutional uses. The suite is occupied by an engineering firm, providing an existing-use profile for an owner-user or investor. A replacement roof was completed in February 2025.
The property is located at 3624 Shannon Road in Durham, near Martin Luther King Jr. Parkway. Regional access includes US 15-501, NC-147, and I-40, while Duke University and retail and commercial services are within a short drive.
The property is located at 3624 Shannon Road in Durham, near Martin Luther King Jr. Parkway. Regional access includes US 15-501, NC-147, and I-40, while Duke University and retail and commercial services are within a short drive.
Key Highlights
- Approximately 2,205 SF ground‑floor office condominium
- 1.73‑acre Westover Place Office Park parcel
- OI zoning for Office & Institutional uses
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
$34,054
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
6.32%
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%
$681,080
$681.1K
Cap Rate 7%
$486,486
$486.5K
Cap Rate 9%
$378,378
$378.4K
Market Conditions
NOI Build-Up for 2,205 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
$55.0K $24.96/SF
− Vacancy
−$9.6K −$4.37/SF
EGI
$45.4K $20.59/SF
− OpEx
−$11.4K −$5.15/SF
NOI
$34.1K $15.44/SF
Area
Durham, NC
Vacancy
17.50%
Lease Rate
$24.96 /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%
$681,080
Cap Rate 7%
$486,486
Cap Rate 9%
$378,378
Alternative Uses
Best Use
Office B
$486.5K
$425.7K – $567.6K
NOI $34,054 @ 7.0% cap · market cap 6.32%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$712.0K
$623.0K – $830.7K
NOI $49,841 @ 7.0% cap · market cap 9.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
924
Businesses Nearby
Explore this area
Business Placement
Demographics for 27707, NC
49,787
Population
23,528
Households
2.1
Avg Household Size
34
Median Age
57%
College-Educated
92%
High-School Grad
20.7 sq mi
ZIP Area
2,405
Density / Sq Mi
$72,432
Median Household Income
$45,803
Median Earnings
$1,364
Median Rent
$371,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office units - Ground-floor office space in an OI-zoned professional office park.
Where is this office units located?
The property is located at 3624 Shannon Road Durham, NC.
What is the asking price?
The asking price for this property is $538,650.
What are key features of this property?
This property features: Approximately 2,205 SF ground‑floor office condominium; 1.73‑acre Westover Place Office Park parcel; OI zoning for Office & Institutional uses
