Flexible Multi-Suite Commercial
For Sale
$425,000
429 N State Highway 342, Red Oak, TX 75154
Two-suite commercial property with ADA access, hard-surface floors, and customer parking on a heavily traveled highway.
Property Size988 SF
Price / SF$430.16
Days on Market49
Property Features for 429 N State Highway 342
General Information
Standard status
Active
Size
988 SF
Total Parking Spaces
9
Property subtype
Office
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1990
Listing Agency:
RE/MAX Best
(972) 617-9888
Listed By:
Rene Jensen · License #0621210
(214) 532-6823
Source:
Lonestarluxuryrealty
Added: Jul 7
Changed: Aug 23
Last Checked: Aug 23 at 8:09AM
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 RE/MAX Best
Investment Insights
Based on property information with market context.
This property is a versatile commercial building configured as two separate suites, with the ability to operate as one larger space for a single user. The interior includes hard-surface flooring throughout and two restrooms. Each suite supports flexible work or service layouts, and Suite A features barn doors that can create private workspaces while still allowing for a more open, collaborative arrangement. Climate control is provided by two HVAC systems, including one recently installed split-system unit. An ADA-accessible ramp supports convenient client and visitor entry, and established landscaping contributes to the exterior presentation.
The building is located on a heavily traveled highway, providing high visibility for ongoing customer-facing and professional activity. On-site parking is available for approximately 8–9 vehicles, supporting both staff and customers.
Designed for adaptability, the property can suit a range of uses including office, retail, medical, and professional services, depending on tenant requirements. The two-suite setup can support multi-tenant occupancy or allow an owner-occupant to take one side while leveraging the other. With ADA access, two restrooms, and straightforward finishes, it offers practical functionality for a variety of commercial operators seeking an accessible, flexible floor plan.
The building is located on a heavily traveled highway, providing high visibility for ongoing customer-facing and professional activity. On-site parking is available for approximately 8–9 vehicles, supporting both staff and customers.
Designed for adaptability, the property can suit a range of uses including office, retail, medical, and professional services, depending on tenant requirements. The two-suite setup can support multi-tenant occupancy or allow an owner-occupant to take one side while leveraging the other. With ADA access, two restrooms, and straightforward finishes, it offers practical functionality for a variety of commercial operators seeking an accessible, flexible floor plan.
Key Highlights
- Commercial building built in 1990 with two suites that can be used as one larger space
- Two restrooms and hard‑surface flooring throughout
- ADA‑accessible ramp for client and visitor entry
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
$16,526
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
3.89%
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%
$330,520
$330.5K
Cap Rate 7%
$236,086
$236.1K
Cap Rate 9%
$183,622
$183.6K
Market Conditions
NOI Build-Up for 988 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
$30.4K $30.72/SF
− Vacancy
−$8.3K −$8.42/SF
EGI
$22.0K $22.30/SF
− OpEx
−$5.5K −$5.58/SF
NOI
$16.5K $16.73/SF
Area
Ellis 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%
$330,520
Cap Rate 7%
$236,086
Cap Rate 9%
$183,622
Alternative Uses
Best Use
Office B
$236.1K
$206.6K – $275.4K
NOI $16,526 @ 7.0% cap · market cap 3.89%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$10.78M
$9.43M – $12.58M
NOI $754,650 @ 7.0% cap · market cap 177.56%
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
321
Businesses Nearby
Explore this area
Business Placement
Demographics for 75154, TX
45,894
Population
17,170
Households
2.7
Avg Household Size
36
Median Age
31%
College-Educated
88%
High-School Grad
47.8 sq mi
ZIP Area
960
Density / Sq Mi
$96,150
Median Household Income
$48,112
Median Earnings
$1,446
Median Rent
$296,000
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 - Two-suite commercial property with ADA access, hard-surface floors, and customer parking on a heavily traveled highway.
Where is this office units located?
The property is located at 429 N State Highway 342 Red Oak, TX.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: Commercial building built in 1990 with two suites that can be used as one larger space; Two restrooms and hard‑surface flooring throughout; ADA‑accessible ramp for client and visitor entry
