Medical Office Building with
For Sale
Contact for pricing
401 West Centerville Road, Garland, TX 75041
Medical and professional suites totaling 7,200 SF with about 40 parking spaces and recent roof and HVAC improvements.
Property Size7,200 SF
Price / SF$183.61
Days on Market128
Property Features for 401 West Centerville Road
General Information
Standard status
Active
Size
7,200 SF
Class
B
Total Parking Spaces
40
Property subtype
Retail, Office, Special Purpose
Zoning
Commercial
Occupancy
50%
Lease Type
NNN
Investment Type
Value Add
Net Operating Income
$42,300
Building Details
Year Built
1972
Year Renovated
2024
Buildings
1
Units
6
Tenancy
Multi
Listing Agency:
Colliers - Dallas, Texas
Listed By:
Zachary Ficke · License #TX 688207
(972) 759-7854
Source:
Crexi
Added: May 5
Changed: Sep 8
Last Checked: Sep 8 at 3:29AM
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 Colliers - Dallas, Texas
Investment Insights
Based on property information with market context.
The Centerville Professional Building is a 7,200-square-foot medical and professional office asset configured into multiple suites. The property is currently 50% occupied and includes approximately 3,600 square feet available. Recent capital improvements include a new roof and HVAC system, supporting reduced near-term capital needs.
The building is located at 401 W Centerville Rd in Garland, Texas, situated on approximately 0.76 acres with roughly 40 parking spaces. The property is described as having strong visibility along a major thoroughfare with traffic counts exceeding 42,300 vehicles per day.
With a mix of medical and service-oriented tenancy, the existing rent structure is tied to NNN leases while maintaining below-market rental rates, according to the seller’s remarks. This creates multiple pathways for value creation through lease-up and/or mark-to-market adjustments, depending on ownership goals.
The building is located at 401 W Centerville Rd in Garland, Texas, situated on approximately 0.76 acres with roughly 40 parking spaces. The property is described as having strong visibility along a major thoroughfare with traffic counts exceeding 42,300 vehicles per day.
With a mix of medical and service-oriented tenancy, the existing rent structure is tied to NNN leases while maintaining below-market rental rates, according to the seller’s remarks. This creates multiple pathways for value creation through lease-up and/or mark-to-market adjustments, depending on ownership goals.
Key Highlights
- 7,200 SF medical/professional office building built in 1972 at 401 W Centerville Rd in Garland, TX
- Approximately 0.76 acres with ~40 parking spaces
- Traffic counts exceed 42,300 vehicles per day along a major thoroughfare
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
$97,044
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
7.34%
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%
$1,940,880
$1.9M
Cap Rate 7%
$1,386,343
$1.4M
Cap Rate 9%
$1,078,267
$1.1M
Market Conditions
NOI Build-Up for 7,200 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
$179.7K $24.96/SF
− Vacancy
−$18.0K −$2.50/SF
EGI
$161.7K $22.46/SF
− OpEx
−$64.7K −$8.99/SF
NOI
$97.0K $13.48/SF
Area
Garland, TX
Vacancy
10.00%
Lease Rate
$24.96 /SF/Yr
Expense Ratio
40.00%
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%
$1,940,880
Cap Rate 7%
$1,386,343
Cap Rate 9%
$1,078,267
Alternative Uses
Best Use
Office B
$5.91M
$5.17M – $6.89M
NOI $413,453 @ 7.0% cap · market cap 31.27%
Second Best
Healthcare Medical
$1.39M
$1.21M – $1.62M
NOI $97,044 @ 7.0% cap · market cap 7.34%
Theoretical Best
Office A
$8.64M
$7.56M – $10.08M
NOI $604,759 @ 7.0% cap · market cap 45.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
632
Businesses Nearby
Explore this area
Business Placement
Demographics for 75041, TX
32,219
Population
10,378
Households
3.1
Avg Household Size
33
Median Age
15%
College-Educated
70%
High-School Grad
7.9 sq mi
ZIP Area
4,078
Density / Sq Mi
$68,692
Median Household Income
$35,027
Median Earnings
$1,368
Median Rent
$214,600
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 units - Medical and professional suites totaling 7,200 SF with about 40 parking spaces and recent roof and HVAC improvements.
Where is this office units located?
The property is located at 401 West Centerville Road Garland, TX.
What is the asking price?
The asking price for this property is $1,322,000.
What are key features of this property?
This property features: 7,200 SF medical/professional office building built in 1972 at 401 W Centerville Rd in Garland, TX; Approximately 0.76 acres with ~40 parking spaces; Traffic counts exceed 42,300 vehicles per day along a major thoroughfare
