Professional Office with Upstairs Bonus
New
For Sale
$900,000
3640 W Waco Drive, Waco, TX 76710
Configured for immediate office use with private rooms, meeting space, shared work area, and kitchen facilities.
Property Size4,208 SF
Price / SF$213.88
Days on Market7
Property Features for 3640 W Waco Drive
General Information
Standard status
Active
Size
4,208 SF
Property subtype
Office
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
2001
Listing Agency:
Kelly, Realtors
(254) 741-1500
Listed By:
Rene Jensen · License #668380
(214) 532-6823
Source:
Lonestarluxuryrealty
Added: Aug 15
Changed: Aug 20
Last Checked: Aug 20 at 5:34AM
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 Kelly, Realtors
Investment Insights
Based on property information with market context.
This 4,208-square-foot office building, constructed in 2001, offers a practical layout for professional operations. The interior includes a reception area, 7 offices, 1 conference room, a bullpen, 2 bathrooms, and a kitchen, along with additional upstairs bonus space.
The property is located at 3640 W Waco Drive in Waco, with access to Waco Drive, Valley Mills Dr, and Highway 6. Its established office configuration provides a defined front-of-house area, private workrooms, collaborative space, and meeting facilities within one building.
The property is located at 3640 W Waco Drive in Waco, with access to Waco Drive, Valley Mills Dr, and Highway 6. Its established office configuration provides a defined front-of-house area, private workrooms, collaborative space, and meeting facilities within one building.
Key Highlights
- 4,208 SF office building constructed in 2001
- Reception area, 7 offices, and 1 conference room
- Bullpen, 2 bathrooms, and kitchen included
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
$58,503
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
6.50%
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%
$1,170,060
$1.2M
Cap Rate 7%
$835,757
$835.8K
Cap Rate 9%
$650,033
$650.0K
Market Conditions
NOI Build-Up for 4,208 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
$93.4K $22.20/SF
− Vacancy
−$15.4K −$3.66/SF
EGI
$78.0K $18.54/SF
− OpEx
−$19.5K −$4.63/SF
NOI
$58.5K $13.90/SF
Area
Waco, TX
Vacancy
16.50%
Lease Rate
$22.20 /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%
$1,170,060
Cap Rate 7%
$835,757
Cap Rate 9%
$650,033
Alternative Uses
Best Use
Office B
$835.8K
$731.3K – $975.1K
NOI $58,503 @ 7.0% cap · market cap 6.50%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.11M
$971.4K – $1.30M
NOI $77,713 @ 7.0% cap · market cap 8.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
964
Businesses Nearby
Explore this area
Business Placement
Demographics for 76710, TX
24,874
Population
12,391
Households
2
Avg Household Size
38
Median Age
32%
College-Educated
92%
High-School Grad
9.3 sq mi
ZIP Area
2,675
Density / Sq Mi
$53,304
Median Household Income
$36,425
Median Earnings
$1,098
Median Rent
$229,000
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 - Configured for immediate office use with private rooms, meeting space, shared work area, and kitchen facilities.
Where is this office building located?
The property is located at 3640 W Waco Drive Waco, TX.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: 4,208 SF office building constructed in 2001; Reception area, 7 offices, and 1 conference room; Bullpen, 2 bathrooms, and kitchen included
