Two-Suite Office
For Sale
$650,000
500 Merchant Drive Unit 100 & #, Norman, OK 73069
Separate front and rear entrances serve both suites, with parking for tenants and clients.
Property Size2,632 SF
Price / SF$246.96
Days on Market138
Property Features for 500 Merchant Drive Unit 100 & #
General Information
Standard status
Active
Size
2,632 SF
Property subtype
Office
Occupancy
100%
Taxes and HOA fees
Annual Taxes
$8,601
Amenities
3
Building Details
Year Built
2014
Buildings
1
Tenancy
Multi
Owner Occupied
Yes
Listing Agency:
(405) 208-1903
Listed By:
Dillard Cies Real Estate
(405) 208-1903
Source:
Xome
Added: Apr 16
Changed: Aug 29
Last Checked: Aug 30 at 3:04PM
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 Dillard Cies Real Estate
Investment Insights
Based on property information with market context.
Built in 2014, this 2,632-square-foot office building contains two distinct suites with separate front and rear access. Suite 100 is leased through October 2029, while Suite 110 is occupied by the owner and configured with three individual offices that can be leased together or separately.
The property includes parking for tenants and clients and is located on Merchant Drive in Norman, Oklahoma. The layout supports an owner-user arrangement with another suite in place, or a multi-tenant office configuration across both sides of the building.
The property includes parking for tenants and clients and is located on Merchant Drive in Norman, Oklahoma. The layout supports an owner-user arrangement with another suite in place, or a multi-tenant office configuration across both sides of the building.
Key Highlights
- 2,632‑square‑foot office building completed in 2014
- Two separate suites with dedicated front and rear entrances
- Suite 100 leased through October 2029
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
$22,322
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
3.43%
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%
$446,440
$446.4K
Cap Rate 7%
$318,886
$318.9K
Cap Rate 9%
$248,022
$248.0K
Market Conditions
NOI Build-Up for 2,632 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
$40.1K $15.24/SF
− Vacancy
−$10.3K −$3.93/SF
EGI
$29.8K $11.31/SF
− OpEx
−$7.4K −$2.83/SF
NOI
$22.3K $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%
$446,440
Cap Rate 7%
$318,886
Cap Rate 9%
$248,022
Alternative Uses
Best Use
Office B
$318.9K
$279.0K – $372.0K
NOI $22,322 @ 7.0% cap · market cap 3.43%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$454.8K
$398.0K – $530.6K
NOI $31,837 @ 7.0% cap · market cap 4.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,425
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 - Separate front and rear entrances serve both suites, with parking for tenants and clients.
Where is this office building located?
The property is located at 500 Merchant Drive Unit 100 & # Norman, OK.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: 2,632‑square‑foot office building completed in 2014; Two separate suites with dedicated front and rear entrances; Suite 100 leased through October 2029
