Renovated Multi-Tenant Office
New
For Sale
$2,199,900
3701 West Waco Drive, Waco, TX 76710
Four entrances support separate office configurations and shared-workspace use.
Property Size12,364 SF
Days on Market5
Property Features for 3701 West Waco Drive
General Information
Standard status
Active
Size
12,364 SF
Class
B
Property subtype
OFC, OFC-BLDG, OFC-RET
Zoning
O-2 Office Residence
Building Details
Building Size
12,364 SF
Year Built
1974
Buildings
1
Stories
1
Units
1
Listing Agency:
Onward Real Estate Team - Keller Williams
(254) 870-0050
Listed By:
Brad Harrell, CCIM · License #363789
(254) 870-0050
Source:
Realnex
Added: Aug 28
Changed: Aug 31
Last Checked: Aug 31 at 12:34PM
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 Onward Real Estate Team - Keller Williams
Investment Insights
Based on property information with market context.
This 12,364-square-foot office building at 3701 West Waco Drive has been renovated with vinyl flooring, updated reception areas, glass-enclosed private offices, open coworking areas, and a substantial training and conference room. Four dedicated entrances support separate occupancy arrangements within the building, which currently houses Keller Williams Realty, Alliance Property Management, and affiliated operations.
The property occupies a 1.0406-acre corner lot at the intersection of West Waco Drive and Valley Mills Drive in Waco. Traffic volumes are approximately 25,318 vehicles per day on Waco Drive and 25,221 vehicles per day on Valley Mills Drive. The site is zoned O-2 Office Residence and was built in 1974.
The property occupies a 1.0406-acre corner lot at the intersection of West Waco Drive and Valley Mills Drive in Waco. Traffic volumes are approximately 25,318 vehicles per day on Waco Drive and 25,221 vehicles per day on Valley Mills Drive. The site is zoned O-2 Office Residence and was built in 1974.
Key Highlights
- 12,364‑square‑foot renovated office building
- 1.0406‑acre corner lot at 3701 West Waco Drive, Waco, TX 76710
- Four dedicated entrances support multi‑tenant occupancy
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
$171,894
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
7.81%
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%
$3,437,880
$3.4M
Cap Rate 7%
$2,455,629
$2.5M
Cap Rate 9%
$1,909,933
$1.9M
Market Conditions
NOI Build-Up for 12,364 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
$274.5K $22.20/SF
− Vacancy
−$45.3K −$3.66/SF
EGI
$229.2K $18.54/SF
− OpEx
−$57.3K −$4.63/SF
NOI
$171.9K $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%
$3,437,880
Cap Rate 7%
$2,455,629
Cap Rate 9%
$1,909,933
Alternative Uses
Best Use
Office B
$2.46M
$2.15M – $2.86M
NOI $171,894 @ 7.0% cap · market cap 7.81%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.26M
$2.85M – $3.81M
NOI $228,338 @ 7.0% cap · market cap 10.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
898
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Four entrances support separate office configurations and shared-workspace use.
Where is this office building located?
The property is located at 3701 West Waco Drive Waco, TX.
What is the asking price?
The asking price for this property is $2,199,900.
What are key features of this property?
This property features: 12,364‑square‑foot renovated office building; 1.0406‑acre corner lot at 3701 West Waco Drive, Waco, TX 76710; Four dedicated entrances support multi‑tenant occupancy
