Office Building with Digital
New
For Sale
$785,000
503 S Water Street, Burnet, TX 78611
Commercial Sale, Burnet, TX
Property Size2,388 SF
Lot Size0.40 Acres
Price / SF$328.73
Days on Market3
Property Features for 503 S Water Street
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
Located on Hwy 281 just south of the Hwy 29 / 281 intersection. At the corner of Hwy 281 and Marble
Standard status
Active
APN
044662
Size
2,388 SF
Lot size
0.40 Acres
Taxes and HOA fees
Tax Description
S8450 Vanderveer / Alexander Lot PT of 1 & 4 BLK 2
Legal Description
S8450 Vanderveer / Alexander Lot PT of 1 & 4 BLK 2
Utilities
Sewer type
Public Sewer
Heating system
Central, Electric (Heating)
Cooling system
Central Air
Water source
Public
Amenities
enclosed storage
carport
asphalt parking
metal roof
3 bathrooms
lighted sign
digital sign
Building Details
Year built
2005
Floors in Building
1
Number of units
1
Flooring type
Hardwood
Building materials
Wood Siding, Stone, Stucco
Roof type
Metal
Listing Agency:
Jim Berry Hill Ctry Rnch Sales
(512) 756-9230
Listed By:
Chadwick Calhoun · License #0456716
(512) 755-0395
Added: Aug 20
Last Checked: Aug 22 at 5:06AM
MLS# 179158
Copyright © 2026 Highland Lakes Association of Realtors MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Built in 2005, this 2,388-square-foot office building offers an air-conditioned commercial layout with 3 bathrooms, enclosed 11' x 11' storage, and an 18' x 20' carport. The property includes asphalt parking, a metal roof, hardwood flooring, and wood siding, stone, and stucco construction. Central heating and cooling support year-round operations, while public water and public sewer serve the building.
The 0.40-acre parcel includes a lighted pole sign measuring 10' x 5' and a 4' x 8' Watchfire digital sign. The Burnet, Texas location is described as a corner site near the city's main intersection, with reported traffic of 25K-30K vehicles per day. The property is also noted as approximately one hour from Austin and 15 minutes from Marble Falls.
The 0.40-acre parcel includes a lighted pole sign measuring 10' x 5' and a 4' x 8' Watchfire digital sign. The Burnet, Texas location is described as a corner site near the city's main intersection, with reported traffic of 25K-30K vehicles per day. The property is also noted as approximately one hour from Austin and 15 minutes from Marble Falls.
Key Highlights
- 2,388‑square‑foot office building constructed in 2005
- 0.40‑acre commercial parcel with asphalt parking
- 10' x 5' lighted pole sign and 4' x 8' Watchfire digital sign
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
$50,188
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
6.39%
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%
$1,003,760
$1.0M
Cap Rate 7%
$716,971
$717.0K
Cap Rate 9%
$557,644
$557.6K
Market Conditions
NOI Build-Up for 2,388 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
$80.2K $33.60/SF
− Vacancy
−$13.3K −$5.58/SF
EGI
$66.9K $28.02/SF
− OpEx
−$16.7K −$7.01/SF
NOI
$50.2K $21.02/SF
Area
Burnet County, TX
Vacancy
16.60%
Lease Rate
$33.60 /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%
$1,003,760
Cap Rate 7%
$716,971
Cap Rate 9%
$557,644
Alternative Uses
Best Use
Office B
$717.0K
$627.4K – $836.5K
NOI $50,188 @ 7.0% cap · market cap 6.39%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$1.80M
$1.57M – $2.10M
NOI $125,907 @ 7.0% cap · market cap 16.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
670
Businesses Nearby
Explore this area
Business Placement
Demographics for 78611, TX
14,839
Population
7,417
Households
2
Avg Household Size
47
Median Age
28%
College-Educated
91%
High-School Grad
274.1 sq mi
ZIP Area
54
Density / Sq Mi
$78,243
Median Household Income
$40,062
Median Earnings
$1,111
Median Rent
$291,400
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 - Air-conditioned commercial office property with parking, enclosed storage, and multiple restrooms on a sizable commercial lot.
Where is this office building located?
The property is located at 503 S Water Street Burnet, TX.
What is the asking price?
The asking price for this property is $785,000.
What are key features of this property?
This property features: 2,388‑square‑foot office building constructed in 2005; 0.40‑acre commercial parcel with asphalt parking; 10' x 5' lighted pole sign and 4' x 8' Watchfire digital sign
