Office Property with Private
New
For Sale
$695,000
404 Elm Street, Royse City, TX 75189
Two private offices, three bathrooms, ADA compliance, and fenced rear parking support flexible office use.
Property Size2,797 SF
Price / SF$248.48
Days on Market6
Property Features for 404 Elm Street
General Information
Standard status
Active
Size
2,797 SF
Property subtype
Office
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Office Units
2
Taxes and HOA fees
Annual Taxes
$10,504
Amenities
conference space
kitchen
storage
patio
yard
Electric
3
Building Details
Year Built
1970
Year Renovated
2025
Tenancy
Single
Owner Occupied
No
Abandoned
No
Listing Agency:
Coldwell Banker Apex, REALTORS
(972) 772-9300
Listed By:
Kari Hollifield · License #0472316
(214) 564-2899
Source:
Xome
Added: Aug 31
Changed: Sep 4
Last Checked: Sep 4 at 1:54AM
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 Coldwell Banker Apex, REALTORS
Investment Insights
Based on property information with market context.
This office property includes two private offices or suites, three bathrooms, ADA-compliant features, a kitchen, storage, and conference space. The layout can accommodate additional offices or remain more open, while a fenced patio and yard extend the usable area. A private gated parking area is located at the rear.
The property occupies a corner lot on S Elm Street in Royse City, just off I-30 and near Royse City Historic Main Street. The roof was replaced in 2025, and the foundation was repaired approximately 4 years ago. The property is tenant occupied and leased through December of 2027. Showings are available by appointment.
The property occupies a corner lot on S Elm Street in Royse City, just off I-30 and near Royse City Historic Main Street. The roof was replaced in 2025, and the foundation was repaired approximately 4 years ago. The property is tenant occupied and leased through December of 2027. Showings are available by appointment.
Key Highlights
- Two private offices or suites with room for additional office areas
- Three bathrooms with ADA‑compliant features
- Kitchen, storage, and conference space 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
$46,786
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
6.73%
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%
$935,720
$935.7K
Cap Rate 7%
$668,371
$668.4K
Cap Rate 9%
$519,844
$519.8K
Market Conditions
NOI Build-Up for 2,797 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
$85.9K $30.72/SF
− Vacancy
−$23.5K −$8.42/SF
EGI
$62.4K $22.30/SF
− OpEx
−$15.6K −$5.58/SF
NOI
$46.8K $16.73/SF
Area
Rockwall County, TX
Vacancy
27.40%
Lease Rate
$30.72 /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%
$935,720
Cap Rate 7%
$668,371
Cap Rate 9%
$519,844
Alternative Uses
Best Use
Office B
$668.4K
$584.8K – $779.8K
NOI $46,786 @ 7.0% cap · market cap 6.73%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$2.11M
$1.84M – $2.46M
NOI $147,472 @ 7.0% cap · market cap 21.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
458
Businesses Nearby
Explore this area
Business Placement
Demographics for 75189, TX
37,777
Population
15,331
Households
2.5
Avg Household Size
34
Median Age
30%
College-Educated
93%
High-School Grad
109.9 sq mi
ZIP Area
344
Density / Sq Mi
$118,105
Median Household Income
$56,979
Median Earnings
$2,133
Median Rent
$336,000
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 units - Two private offices, three bathrooms, ADA compliance, and fenced rear parking support flexible office use.
Where is this office units located?
The property is located at 404 Elm Street Royse City, TX.
What is the asking price?
The asking price for this property is $695,000.
What are key features of this property?
This property features: Two private offices or suites with room for additional office areas; Three bathrooms with ADA‑compliant features; Kitchen, storage, and conference space included
