Flexible Office Units With Surface
For Sale
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3990 State Road 38 E, Lafayette, IN 47905
General Business zoning accommodates medical, office, retail/service, showroom, and fitness uses.
Property Size25,020 SF
Price / SF$149.88
Days on Market262
Property Features for 3990 State Road 38 E
General Information
Standard status
Active
Size
25,020 SF
Property subtype
OFFICE
Zoning
GB
Site & Location
Highway Access
Yes
Road Access
Yes
Listing Agency:
Shook Commercial Real Estate
(765) 427-2047
Listed By:
Dustin Zufall
(765) 427-2047
Source:
Moodyscre
Added: Dec 12, 2025
Changed: Aug 31
Last Checked: Aug 31 at 1:44AM
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 Shook Commercial Real Estate
Investment Insights
Based on property information with market context.
This 25,020-square-foot office property offers an open, adaptable layout that can accommodate private offices or showroom buildouts. On-site surface parking supports daily operations, while General Business (GB) zoning provides broad use permissions identified for medical, office, retail/service, showroom, and fitness applications.
The property fronts State Road 38 E, creating opportunities for prominent signage and convenient access. Connections to I-65 and Veterans Memorial Pkwy are nearby, with schools, employers, dense rooftops, and daily-needs retail contributing to the surrounding commercial context.
The property fronts State Road 38 E, creating opportunities for prominent signage and convenient access. Connections to I-65 and Veterans Memorial Pkwy are nearby, with schools, employers, dense rooftops, and daily-needs retail contributing to the surrounding commercial context.
Key Highlights
- 25,020 square feet of office space
- General Business (GB) zoning
- Open, adaptable floor plan
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
$299,489
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
7.99%
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%
$5,989,780
$6.0M
Cap Rate 7%
$4,278,414
$4.3M
Cap Rate 9%
$3,327,656
$3.3M
Market Conditions
NOI Build-Up for 25,020 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
$525.4K $21.00/SF
− Vacancy
−$126.1K −$5.04/SF
EGI
$399.3K $15.96/SF
− OpEx
−$99.8K −$3.99/SF
NOI
$299.5K $11.97/SF
Area
Tippecanoe County, IN
Vacancy
24.00%
Lease Rate
$21.00 /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%
$5,989,780
Cap Rate 7%
$4,278,414
Cap Rate 9%
$3,327,656
Alternative Uses
Best Use
Office B
$4.28M
$3.74M – $4.99M
NOI $299,489 @ 7.0% cap · market cap 7.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.78M
$5.05M – $6.74M
NOI $404,351 @ 7.0% cap · market cap 10.78%
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
451
Businesses Nearby
Explore this area
Business Placement
Demographics for 47905, IN
41,787
Population
18,309
Households
2.3
Avg Household Size
37
Median Age
32%
College-Educated
91%
High-School Grad
120.4 sq mi
ZIP Area
347
Density / Sq Mi
$63,115
Median Household Income
$41,595
Median Earnings
$1,101
Median Rent
$215,500
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - General Business zoning accommodates medical, office, retail/service, showroom, and fitness uses.
Where is this office units located?
The property is located at 3990 State Road 38 E Lafayette, IN.
What is the asking price?
The asking price for this property is $3,750,000.
What are key features of this property?
This property features: 25,020 square feet of office space; General Business (GB) zoning; Open, adaptable floor plan
