Remodeled Two-Story Office
For Sale
Contact for pricing
425 W Gray St, Norman, OK 73069
Fully remodeled two-story office building with ADA restrooms, multiple offices, and an adjacent parking lot with 20+ spaces.
Property Size4,800 SF
Price / SF$250
Days on Market145
Property Features for 425 W Gray St
General Information
Standard status
Active
Size
4,800 SF
Class
B
Property subtype
Office
Zoning
CCFB
Investment Type
Owner/User
Amenities
reception area
conference room
kitchen
open work area
Building Details
Year Built
1976
Year Renovated
2025
Buildings
1
Stories
2
Listing Agency:
Equity Commercial Realty Advisors, LLC
Listed By:
Gayla Artman · License #OK 079819
(405) 826-7975
Source:
Crexi
Added: Apr 17
Changed: Aug 23
Last Checked: Sep 7 at 2:26AM
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 Equity Commercial Realty Advisors, LLC
Investment Insights
Based on property information with market context.
This fully remodeled (2025) two-story commercial office building offers a versatile, light-filled layout designed for professional use. The first floor includes a reception area, a large conference room, two ADA-compliant restrooms, a kitchen, a file room, and an open work area for collaboration. Additional support spaces include a utility room and a janitorial closet. The second floor features four private offices, a conference room, two ADA-compliant restrooms, a kitchen, and a dedicated mechanical room.
The property is positioned just west of Downtown Norman at 425 W Gray St. An adjacent parking lot to the west provides 20+ parking spaces for both properties, supporting employee and client parking.
Overall, the building is configured with multiple conference and work areas across both levels, along with ADA-compliant restroom facilities on each floor and dedicated utility and mechanical space.
The property is positioned just west of Downtown Norman at 425 W Gray St. An adjacent parking lot to the west provides 20+ parking spaces for both properties, supporting employee and client parking.
Overall, the building is configured with multiple conference and work areas across both levels, along with ADA-compliant restroom facilities on each floor and dedicated utility and mechanical space.
Key Highlights
- Fully remodeled two‑story commercial office building (2025) built in 1976
- Adjacent parking lot to the west with 20+ parking spaces for employees and clients
- First floor includes reception, large conference room, open work area, kitchen, file room, utility room, and janitorial closet
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
$40,709
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
3.39%
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%
$814,180
$814.2K
Cap Rate 7%
$581,557
$581.6K
Cap Rate 9%
$452,322
$452.3K
Market Conditions
NOI Build-Up for 4,800 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
$73.2K $15.24/SF
− Vacancy
−$18.9K −$3.93/SF
EGI
$54.3K $11.31/SF
− OpEx
−$13.6K −$2.83/SF
NOI
$40.7K $8.48/SF
Area
Norman, OK
Vacancy
25.80%
Lease Rate
$15.24 /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%
$814,180
Cap Rate 7%
$581,557
Cap Rate 9%
$452,322
Alternative Uses
Best Use
Office B
$581.6K
$508.9K – $678.5K
NOI $40,709 @ 7.0% cap · market cap 3.39%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$829.4K
$725.8K – $967.7K
NOI $58,061 @ 7.0% cap · market cap 4.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,883
Businesses Nearby
Explore this area
Business Placement
Demographics for 73069, OK
26,464
Population
12,719
Households
2.1
Avg Household Size
32
Median Age
45%
College-Educated
93%
High-School Grad
15.7 sq mi
ZIP Area
1,686
Density / Sq Mi
$55,699
Median Household Income
$34,151
Median Earnings
$1,031
Median Rent
$212,400
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 - Fully remodeled two-story office building with ADA restrooms, multiple offices, and an adjacent parking lot with 20+ spaces.
Where is this office building located?
The property is located at 425 W Gray St Norman, OK.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Fully remodeled two‑story commercial office building (2025) built in 1976; Adjacent parking lot to the west with 20+ parking spaces for employees and clients; First floor includes reception, large conference room, open work area, kitchen, file room, utility room, and janitorial closet
