First-Floor Office
For Sale
$435,000
5003 Southpark, Durham, NC 27713
Leased professional suite with occupancy secured through July 2029 and an extension option.
Property Size1,386 SF
Price / SF$313.85
Days on Market123
Property Features for 5003 Southpark
General Information
Standard status
Active
Size
1,386 SF
Property subtype
Commercial
Additional Details
Floor
First Floor
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$2,657
Building Details
Year Built
2005
Tenancy
Single
Listing Agency:
BERKSHIRE HATHAWAY HOMESERVICE
(919) 383-4663
Listed By:
AMY C SEARS
Source:
Corcoran
Added: May 1
Changed: Aug 31
Last Checked: Aug 31 at 2:00AM
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 BERKSHIRE HATHAWAY HOMESERVICE
Investment Insights
Based on property information with market context.
Suite 120 is a 1,386-square-foot office condominium on the first floor of Building 5003 within Southpark Professional Center. The space is occupied by the US Government for Naval Officer Recruitment under a lease scheduled to end in July 2029. The tenant also holds an option to continue occupancy and has remained in place since the lease began in 2005.
The property is positioned near I-40, RDU Airport, and the broader Triangle area, providing access to major regional destinations. The condominium is located at 5003 Southpark in Durham, North Carolina, within an established professional office center.
The property is positioned near I-40, RDU Airport, and the broader Triangle area, providing access to major regional destinations. The condominium is located at 5003 Southpark in Durham, North Carolina, within an established professional office center.
Key Highlights
- 1,386‑square‑foot first‑floor office condominium
- Suite 120 in Building 5003 at Southpark Professional Center
- Leased to the US Government for Naval Officer Recruitment
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
$21,405
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
4.92%
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%
$428,100
$428.1K
Cap Rate 7%
$305,786
$305.8K
Cap Rate 9%
$237,833
$237.8K
Market Conditions
NOI Build-Up for 1,386 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
$34.6K $24.96/SF
− Vacancy
−$6.1K −$4.37/SF
EGI
$28.5K $20.59/SF
− OpEx
−$7.1K −$5.15/SF
NOI
$21.4K $15.44/SF
Area
Durham, NC
Vacancy
17.50%
Lease Rate
$24.96 /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%
$428,100
Cap Rate 7%
$305,786
Cap Rate 9%
$237,833
Alternative Uses
Best Use
Office B
$305.8K
$267.6K – $356.8K
NOI $21,405 @ 7.0% cap · market cap 4.92%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$447.6K
$391.6K – $522.2K
NOI $31,329 @ 7.0% cap · market cap 7.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,524
Businesses Nearby
Explore this area
Business Placement
Demographics for 27713, NC
54,988
Population
26,266
Households
2.1
Avg Household Size
36
Median Age
65%
College-Educated
96%
High-School Grad
35.4 sq mi
ZIP Area
1,553
Density / Sq Mi
$96,900
Median Household Income
$56,918
Median Earnings
$1,460
Median Rent
$380,500
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 - Leased professional suite with occupancy secured through July 2029 and an extension option.
Where is this office units located?
The property is located at 5003 Southpark Durham, NC.
What is the asking price?
The asking price for this property is $435,000.
What are key features of this property?
This property features: 1,386‑square‑foot first‑floor office condominium; Suite 120 in Building 5003 at Southpark Professional Center; Leased to the US Government for Naval Officer Recruitment
