Mid-City Retail/Office
For Sale
Contact for pricing
4041 Government Street, Baton Rouge, LA
4,400 SF retail/office property on 0.88 acres in Mid-City.
Property Size4,400 SF
Lot Size0.88 Acres
Price / SF$247.50
Days on Market281
Property Features for 4041 Government Street
General Information
Standard status
Active
Size
4,400 SF
Lot size
0.88 Acres
Property subtype
RETAIL
Listing Agency:
NAI Rampart Commercial Real Estate Baton Rouge
(225) 295-0800
Listed By:
Lauren Buckholtz
(225) 326-3893
Source:
Moodyscre
Added: Nov 25, 2025
Changed: Aug 10
Last Checked: Sep 1 at 11:26PM
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 NAI Rampart Commercial Real Estate Baton Rouge
Investment Insights
Based on property information with market context.
This 4,400 square foot retail/office/commercial property, designed by A. Hays Town, is situated next to La Carreta in a prime Mid-City location. The 0.88-acre site provides parking space for approximately 50 cars. The building can be divided into two suites, with a minimum divisible area of 2,000 square feet. The property features 160 feet of frontage on Government Street, offering high visibility. Previously a bank, the building includes enclosed drive-thru lanes that could be modified for renewed use.
Key Highlights
- Prime Mid‑City location next to La Carreta.
- Oversized 0.88 acre site with approximately 50 car parks.
- 4,400 SF A. Hays Town retail/office/commercial property.
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
$73,763
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
6.77%
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%
$1,475,260
$1.5M
Cap Rate 7%
$1,053,757
$1.1M
Cap Rate 9%
$819,589
$819.6K
Market Conditions
NOI Build-Up for 4,400 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
$98.7K $22.44/SF
− Vacancy
−$385 −$0.09/SF
EGI
$98.4K $22.35/SF
− OpEx
−$24.6K −$5.59/SF
NOI
$73.8K $16.76/SF
Area
Baton Rouge, LA
Vacancy
0.39%
Lease Rate
$22.44 /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%
$1,475,260
Cap Rate 7%
$1,053,757
Cap Rate 9%
$819,589
Alternative Uses
Best Use
Specialty Retail
$1.05M
$922.0K – $1.23M
NOI $73,763 @ 7.0% cap · market cap 6.77%
Second Best
Retail
$983.5K
$860.6K – $1.15M
NOI $68,846 @ 7.0% cap · market cap 6.32%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,806
Businesses Nearby
Explore this area
Business Placement
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?
Bank - 4,400 SF retail/office property on 0.88 acres in Mid-City.
Where is this bank located?
The property is located at 4041 Government Street Baton Rouge, LA.
What is the asking price?
The asking price for this property is $1,089,000.
What are key features of this property?
This property features: Prime Mid‑City location next to La Carreta.; Oversized 0.88 acre site with approximately 50 car parks.; 4,400 SF A. Hays Town retail/office/commercial property.
