Fully Leased Office
For Sale
$2,352,000
Pending
5-8-856 E 12300 S, Draper, UT 84020
Fully remodeled office building with private offices, conference rooms, reception, and two restrooms under a long-term NNN lease.
Property Size5,040 SF
Lot Size0.48 Acres
Days on Market54
Property Features for 5-8-856 E 12300 S
General Information
Standard status
Pending
Size
5,040 SF
Total Parking Spaces
29
Lot size
0.48 Acres
Occupancy
100%
Site & Location
Traffic Count
25,000 vehicles/day
Highway Access
Yes
Additional Details
Cap Rate
6%
Taxes and HOA fees
Annual Taxes
$14,475
Amenities
air conditioning
central heating
natural light
monument signage
wheelchair accessibility
public transit access
Building Details
Tenancy
Single
Listing Agency:
Pendleton Real Estate LLC
(801) 450-2900
Listed By:
Mike Minnick
(801) 918-7888
Source:
Exprealty
Added: Jul 22
Changed: Sep 4
Last Checked: Sep 12 at 10:08AM
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 Pendleton Real Estate LLC
Investment Insights
Based on property information with market context.
This fully remodeled office building totals 5,040 square feet and is configured for a modern, professional workplace. The layout includes 15 private offices, two conference rooms, two upgraded kitchens/break rooms, two restrooms, a welcoming reception area, and two large open areas suited for cubicles or collaborative workstations. The building is equipped with air conditioning, central heating, abundant natural light, and features wheelchair accessibility plus monument signage.
The property is located in Downtown Draper within a highly visible, high-traffic corridor, with exposure to more than 25,000 vehicles per day. It sits on a 0.48-acre parcel with 29 on-site parking spaces and offers convenient access to nearby public transit. Interstate 15 provides connectivity throughout the Salt Lake Valley, and the building is near Draper Town Center Station and Kimball Lane Station. The property is 100% leased under a long-term triple-net (NNN) lease to Headwaters Construction.
The property is located in Downtown Draper within a highly visible, high-traffic corridor, with exposure to more than 25,000 vehicles per day. It sits on a 0.48-acre parcel with 29 on-site parking spaces and offers convenient access to nearby public transit. Interstate 15 provides connectivity throughout the Salt Lake Valley, and the building is near Draper Town Center Station and Kimball Lane Station. The property is 100% leased under a long-term triple-net (NNN) lease to Headwaters Construction.
Key Highlights
- 5,040 SF fully remodeled office building in Downtown Draper on a 0.48‑acre parcel
- 100% leased to Headwaters Construction under a long‑term triple‑net (NNN) lease
- 15 private offices plus 2 conference rooms, reception area, and two large open work areas
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
$73,075
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
3.11%
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%
$1,461,500
$1.5M
Cap Rate 7%
$1,043,929
$1.0M
Cap Rate 9%
$811,944
$811.9K
Market Conditions
NOI Build-Up for 5,040 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
$108.3K $21.48/SF
− Vacancy
−$10.8K −$2.15/SF
EGI
$97.4K $19.33/SF
− OpEx
−$24.4K −$4.83/SF
NOI
$73.1K $14.50/SF
Area
Salt Lake County, UT
Vacancy
10.00%
Lease Rate
$21.48 /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%
$1,461,500
Cap Rate 7%
$1,043,929
Cap Rate 9%
$811,944
Alternative Uses
Best Use
Office B
$1.04M
$913.4K – $1.22M
NOI $73,075 @ 7.0% cap · market cap 3.11%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$67.11M
$58.72M – $78.29M
NOI $4,697,662 @ 7.0% cap · market cap 199.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
25,000 VPD
Traffic count
100%
Occupancy
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,212
Businesses Nearby
Explore this area
Business Placement
Demographics for 84020, UT
51,017
Population
16,865
Households
3
Avg Household Size
34
Median Age
51%
College-Educated
97%
High-School Grad
27.2 sq mi
ZIP Area
1,876
Density / Sq Mi
$130,680
Median Household Income
$55,377
Median Earnings
$1,812
Median Rent
$726,000
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Fully remodeled office building with private offices, conference rooms, reception, and two restrooms under a long-term NNN lease.
Where is this office building located?
The property is located at 5-8-856 E 12300 S Draper, UT.
What is the asking price?
The asking price for this property is $2,352,000.
What are key features of this property?
This property features: 5,040 SF fully remodeled office building in Downtown Draper on a 0.48‑acre parcel; 100% leased to Headwaters Construction under a long‑term triple‑net (NNN) lease; 15 private offices plus 2 conference rooms, reception area, and two large open work areas
