Corner Office
For Sale
$1,690,000
4225 E Hwy 290, Dripping Springs, TX 78620
Flexible commercial layout supports professional, medical, creative office, and showroom uses.
Property Size3,326 SF
Lot Size1.00 Acre
Price / SF$508.12
Days on Market64
Property Features for 4225 E Hwy 290
General Information
Standard status
Active
Size
3,326 SF
Lot size
1.00 Acre
Property subtype
Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1986
Listing Agency:
Stanberry REALTORS
(512) 894-3488
Listed By:
Scott Daves (512) 894-3488 · License #0470497
Source:
Allcentraltxhomesforsale
Added: Jun 27
Changed: Aug 28
Last Checked: Aug 28 at 4:25PM
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 Stanberry REALTORS
Investment Insights
Based on property information with market context.
This 3,326 SF office property occupies an acre lot and was built in 1986. Its adaptable configuration can accommodate professional services, medical operations, creative office functions, showroom use, or other commercial applications identified for the property.
The building sits at the corner of HWY 290 and Trautwein Rd, with frontage, exposure, and high daily traffic counts contributing to its prominent position. The site offers access between Dripping Springs and Austin, placing both communities within the property’s stated service area. The combination of office improvements, a sizable lot, and a highly visible corridor supports consideration for owner occupancy or investment use.
The building sits at the corner of HWY 290 and Trautwein Rd, with frontage, exposure, and high daily traffic counts contributing to its prominent position. The site offers access between Dripping Springs and Austin, placing both communities within the property’s stated service area. The combination of office improvements, a sizable lot, and a highly visible corridor supports consideration for owner occupancy or investment use.
Key Highlights
- 3,326 SF office property on an acre lot
- Corner position at HWY 290 and Trautwein Rd
- Frontage, exposure, and high daily traffic counts
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
$79,310
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
4.69%
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%
$1,586,200
$1.6M
Cap Rate 7%
$1,133,000
$1.1M
Cap Rate 9%
$881,222
$881.2K
Market Conditions
NOI Build-Up for 3,326 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
$139.7K $42.00/SF
− Vacancy
−$33.9K −$10.21/SF
EGI
$105.7K $31.79/SF
− OpEx
−$26.4K −$7.95/SF
NOI
$79.3K $23.85/SF
Area
Hays County, TX
Vacancy
24.30%
Lease Rate
$42.00 /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%
$1,586,200
Cap Rate 7%
$1,133,000
Cap Rate 9%
$881,222
Alternative Uses
Best Use
Office B
$1.13M
$991.4K – $1.32M
NOI $79,310 @ 7.0% cap · market cap 4.69%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.39M
$1.22M – $1.62M
NOI $97,325 @ 7.0% cap · market cap 5.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
287
Businesses Nearby
Explore this area
Business Placement
Demographics for 78620, TX
20,493
Population
7,929
Households
2.6
Avg Household Size
43
Median Age
62%
College-Educated
97%
High-School Grad
175.6 sq mi
ZIP Area
117
Density / Sq Mi
$146,551
Median Household Income
$58,583
Median Earnings
$1,674
Median Rent
$624,800
Median Home Value
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?
Office units - Flexible commercial layout supports professional, medical, creative office, and showroom uses.
Where is this office units located?
The property is located at 4225 E Hwy 290 Dripping Springs, TX.
What is the asking price?
The asking price for this property is $1,690,000.
What are key features of this property?
This property features: 3,326 SF office property on an acre lot; Corner position at HWY 290 and Trautwein Rd; Frontage, exposure, and high daily traffic counts
