Three-Suite Office
New
For Sale
$749,000
431 N State Highway 342, Red Oak, TX 75154
Three office suites with flexible layouts, on-site parking, and an ADA-accessible restroom.
Property Size1,950 SF
Price / SF$384.10
Days on Market3
Property Features for 431 N State Highway 342
General Information
Standard status
Active
Size
1,950 SF
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Office Units
3
Building Details
Year Built
2018
Listing Agency:
RE/MAX Best
Listed By:
Patty Jordan · License #0621210
(972) 617-9888
Source:
Christenberrygroup
Added: Sep 5
Last Checked: Sep 6 at 10:16AM
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 1,950-square-foot office property, built in 2018, contains three individual commercial suites. Suite C provides approximately 600 square feet with a 19' x 20' main office, an 8' x 5' flex area, and an approximately 8' x 8' ADA-accessible restroom. Laminate flooring, recessed lighting, a ceiling fan, and natural light are included in the suite. The flex area can accommodate private office, storage, break-room, or additional workspace functions.
Located at 431 N State Highway 342 in Red Oak, the property fronts a corridor with an estimated 10,000+ vehicles passing daily. The site includes convenient access to parking areas and ample on-site parking, with access to major highways. The three-suite configuration supports separate office occupancy within a single commercial property.
Located at 431 N State Highway 342 in Red Oak, the property fronts a corridor with an estimated 10,000+ vehicles passing daily. The site includes convenient access to parking areas and ample on-site parking, with access to major highways. The three-suite configuration supports separate office occupancy within a single commercial property.
Key Highlights
- 1,950‑square‑foot office property with three commercial suites
- Suite C offers approximately 600 square feet
- 19' x 20' main office plus an 8' x 5' flex area
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
$32,618
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
4.35%
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%
$652,360
$652.4K
Cap Rate 7%
$465,971
$466.0K
Cap Rate 9%
$362,422
$362.4K
Market Conditions
NOI Build-Up for 1,950 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
$59.9K $30.72/SF
− Vacancy
−$16.4K −$8.42/SF
EGI
$43.5K $22.30/SF
− OpEx
−$10.9K −$5.58/SF
NOI
$32.6K $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%
$652,360
Cap Rate 7%
$465,971
Cap Rate 9%
$362,422
Alternative Uses
Best Use
Office B
$466.0K
$407.7K – $543.6K
NOI $32,618 @ 7.0% cap · market cap 4.35%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$21.28M
$18.62M – $24.82M
NOI $1,489,440 @ 7.0% cap · market cap 198.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
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
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Frequently Asked Questions
What type of property is this?
Office units - Three office suites with flexible layouts, on-site parking, and an ADA-accessible restroom.
Where is this office units located?
The property is located at 431 N State Highway 342 Red Oak, TX.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: 1,950‑square‑foot office property with three commercial suites; Suite C offers approximately 600 square feet; 19' x 20' main office plus an 8' x 5' flex area
