Six-Unit Office
For Sale
$649,500
406 W Fm 120, Pottsboro, TX 75076
CommercialSale, Pottsboro, TX
Property Size3,500 SF
Lot Size0.53 Acres
Price / SF$185.57
Days on Market47
Property Features for 406 W Fm 120
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
COMMERCIAL
Parking features
Open
Lot features
Corner Lot
Directions
Travel West on FM 120 in Pottsboro towards the Round A Bout. Property is located on the right corner of FM 120 and Spur 316
Standard status
Active
APN
153378
Size
3,500 SF
Lot size
0.53 Acres
Taxes and HOA fees
Tax Description
G-0506 HILL T J A-G0506, ACRES .53, 23086 SQ
Tax Annual Amount
6021
Legal Description
G-0506 HILL T J A-G0506, ACRES .53, 23086 SQ
Utilities
Sewer type
Public Sewer
Heating system
Central, Electric (Heating)
Cooling system
Central Air, Ceiling Fan(s)
Water source
Public
Building Details
Year built
1978
Floors in Building
1
Number of units
6
Flooring type
Carpet, Tile, Laminate
Building materials
Brick, FiberCement
Roof type
Metal
Listing Agency:
DFW Elite
(214) 642-6969
Listed By:
Sheri Kent · License #0496604
(903) 819-2928
Added: Jul 20
Changed: Sep 3
Last Checked: Sep 4 at 5:06PM
MLS# 21336375
Copyright © 2026 North Texas Real Estate Information Systems, Inc. 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.
The property includes a 3,500-square-foot commercial building completed in 1978 with six separately configured units. Each unit has its own restroom and office area, with interior finishes including carpet, tile, and laminate. Central air, electric heating, ceiling fans, a metal roof, brick and fiber-cement construction, public water, and public sewer are also in place.
Located at 406 W FM 120 in Pottsboro, the 0.53-acre property sits near a roundabout and across from First United Bank, with additional neighboring businesses including Tammie's Lakeside Hair and Tanning and Mom's Cafe. Three tenants currently occupy the building, including one tenant using two units. Portions of the parking area are leased for privately owned ice and reverse-osmosis water businesses; those businesses are not included in the offering. The sale covers the land and improvements only.
Located at 406 W FM 120 in Pottsboro, the 0.53-acre property sits near a roundabout and across from First United Bank, with additional neighboring businesses including Tammie's Lakeside Hair and Tanning and Mom's Cafe. Three tenants currently occupy the building, including one tenant using two units. Portions of the parking area are leased for privately owned ice and reverse-osmosis water businesses; those businesses are not included in the offering. The sale covers the land and improvements only.
Key Highlights
- 3,500‑square‑foot commercial building on 0.53 acres
- Six units, each with a separate restroom and office space
- Three current tenants, with one tenant occupying two units
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
$58,545
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
9.01%
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%
$1,170,900
$1.2M
Cap Rate 7%
$836,357
$836.4K
Cap Rate 9%
$650,500
$650.5K
Market Conditions
NOI Build-Up for 3,500 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
$107.5K $30.72/SF
− Vacancy
−$29.5K −$8.42/SF
EGI
$78.1K $22.30/SF
− OpEx
−$19.5K −$5.58/SF
NOI
$58.5K $16.73/SF
Area
Grayson 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%
$1,170,900
Cap Rate 7%
$836,357
Cap Rate 9%
$650,500
Alternative Uses
Best Use
Office B
$836.4K
$731.8K – $975.8K
NOI $58,545 @ 7.0% cap · market cap 9.01%
Second Best
Retail
$829.9K
$726.2K – $968.2K
NOI $58,094 @ 7.0% cap · market cap 8.94%
Theoretical Best
Hotel Hospitality
$1.80M
$1.57M – $2.09M
NOI $125,685 @ 7.0% cap · market cap 19.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
222
Businesses Nearby
Explore this area
Business Placement
Demographics for 75076, TX
8,057
Population
4,361
Households
1.8
Avg Household Size
50
Median Age
21%
College-Educated
93%
High-School Grad
50.3 sq mi
ZIP Area
160
Density / Sq Mi
$76,644
Median Household Income
$41,274
Median Earnings
$1,337
Median Rent
$241,700
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 building - Multi-suite commercial property with individual restrooms, office areas, and open parking in a high-traffic Pottsboro setting.
Where is this office building located?
The property is located at 406 W Fm 120 Pottsboro, TX.
What is the asking price?
The asking price for this property is $649,500.
What are key features of this property?
This property features: 3,500‑square‑foot commercial building on 0.53 acres; Six units, each with a separate restroom and office space; Three current tenants, with one tenant occupying two units
