Retail Center with Dual End-Cap
For Sale
$967,000
405 Southwest Drive, Jonesboro, AR 72401
CommercialSale, Jonesboro, AR
Property Size5,270 SF
Price / SF$183.49
Days on Market47
Property Features for 405 Southwest Drive
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
Commercial
Lot features
Central Business District, Corner Lot
Directions
From I-555 take exit 45 onto Southwest Dr. Head east for ~.5 miles and property will on your right.
Standard status
Active
APN
01-144302-30600
Size
5,270 SF
Taxes and HOA fees
Tax Description
SOUTHWESTSQUARE PTSKYVUEADD PTNW LESSARK STATE HWYDEPT
Legal Description
SOUTHWESTSQUARE PTSKYVUEADD PTNW LESSARK STATE HWYDEPT
Building Details
Year built
2005
Listing Agency:
Lindsey & Associates Inc
(479) 521-6611
Listed By:
Jeff Pederson · License #SA00067378
(479) 856-2233
Added: Jul 13
Changed: Aug 19
Last Checked: Aug 28 at 12:06AM
MLS# 1354979
Copyright © 2026 ArkansasONE MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Located at 405 Southwest Drive in Jonesboro, Arkansas, this fully occupied three-tenant retail center includes drive-through windows on both end caps. The center is supported by a multi-tenant tall pole sign and has a long history of occupancy on-site, with an anchor mix of national and regional tenants.
The property fronts Southwest Dr with traffic counts of approximately 22,000 vehicles per day, providing visibility for passing motorists. A regional restaurant tenant recently executed a long-term absolute triple net lease renewal, reinforcing the center’s stability under its existing lease structure. In-place rents are described as affordable, and the center is presented as an NNN-oriented investment backed by proven tenant retention.
The offering combines a straightforward neighborhood retail configuration with durable, long-term tenancy and prominent highway frontage.
The property fronts Southwest Dr with traffic counts of approximately 22,000 vehicles per day, providing visibility for passing motorists. A regional restaurant tenant recently executed a long-term absolute triple net lease renewal, reinforcing the center’s stability under its existing lease structure. In-place rents are described as affordable, and the center is presented as an NNN-oriented investment backed by proven tenant retention.
The offering combines a straightforward neighborhood retail configuration with durable, long-term tenancy and prominent highway frontage.
Key Highlights
- Fully occupied three‑tenant retail center at 405 Southwest Dr
- Year built 2005
- Regional restaurant tenant recently renewed a long‑term absolute triple net lease
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
$44,893
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
4.64%
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%
$897,860
$897.9K
Cap Rate 7%
$641,329
$641.3K
Cap Rate 9%
$498,811
$498.8K
Market Conditions
NOI Build-Up for 5,270 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
$68.3K $12.96/SF
− Vacancy
−$4.2K −$0.79/SF
EGI
$64.1K $12.17/SF
− OpEx
−$19.2K −$3.65/SF
NOI
$44.9K $8.52/SF
Area
Craighead County, AR
Vacancy
6.10%
Lease Rate
$12.96 /SF/Yr
Expense Ratio
30.00%
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%
$897,860
Cap Rate 7%
$641,329
Cap Rate 9%
$498,811
Alternative Uses
Best Use
Retail
$641.3K
$561.2K – $748.2K
NOI $44,893 @ 7.0% cap · market cap 4.64%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$922.6K
$807.3K – $1.08M
NOI $64,585 @ 7.0% cap · market cap 6.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
22,000 VPD
Traffic count
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
560
Businesses Nearby
116k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 67%
Shops & Services 27%
Home Improvements & Furnishings 6%
Electronics 1%
McDonald's
Dining
33,997 visits/mo
0.3 miles
Kum & Go
Shops & Services
22,012 visits/mo
0.4 miles
Starbucks
Dining
12,891 visits/mo
0.2 miles
Andy's Frozen Custard
Dining
12,583 visits/mo
0.4 miles
Ditta Ace Hardware
Home Improvements & Furnishings
6,449 visits/mo
0.5 miles
Demographics for 72401, AR
43,127
Population
19,328
Households
2.2
Avg Household Size
33
Median Age
23%
College-Educated
89%
High-School Grad
88.5 sq mi
ZIP Area
487
Density / Sq Mi
$43,412
Median Household Income
$32,970
Median Earnings
$897
Median Rent
$185,400
Median Home Value
Market
Vacancy Rate% for Retail 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?
Shopping center - Fully occupied three-tenant retail center with drive-through windows on both end caps and a tall pole sign.
Where is this shopping center located?
The property is located at 405 Southwest Drive Jonesboro, AR.
What is the asking price?
The asking price for this property is $967,000.
What are key features of this property?
This property features: Fully occupied three‑tenant retail center at 405 Southwest Dr; Year built 2005; Regional restaurant tenant recently renewed a long‑term absolute triple net lease
