Office Units with Adaptable
New
For Sale
$160,000
509 E 3rd Street, Lancaster, TX 75146
Three enclosed rooms, an open work area, and a backyard provide flexible commercial space near downtown Lancaster.
Property Size1,020 SF
Days on Market3
Property Features for 509 E 3rd Street
General Information
Standard status
Active
Size
1,020 SF
Property subtype
Commercial
Zoning
Mixed Use, Light Industrial
Amenities
oversized backyard
Building Details
Building Size
1,020 SF
Year Built
1920
Stories
1
Units
1
Listing Agency:
Jireh Realty Team LLC
(214) 356-9654
Listed By:
Joy Triplett · License #0534970
(214) 356-9654
Source:
Fullhouserealtytx
Added: Aug 21
Changed: Aug 22
Last Checked: Aug 22 at 7:19AM
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 Jireh Realty Team LLC
Investment Insights
Based on property information with market context.
Built in 1920, this office property offers a mix of enclosed and open areas for a range of professional configurations. The interior includes three rooms with closets, a large central living or work area, one full bathroom, and a separate utility room with washer and dryer hookups. The property is offered as-is and carries Mixed Use, Light Industrial zoning.
A backyard adds exterior space that can support the property's overall layout, subject to applicable approvals. The site is within walking distance of downtown Lancaster, placing the property near the city's central business area. Its existing room arrangement and combination of work, utility, and outdoor areas provide a practical foundation for customization.
A backyard adds exterior space that can support the property's overall layout, subject to applicable approvals. The site is within walking distance of downtown Lancaster, placing the property near the city's central business area. Its existing room arrangement and combination of work, utility, and outdoor areas provide a practical foundation for customization.
Key Highlights
- Office property built in 1920
- Three rooms with closets plus a large open living or workspace
- Full bathroom and utility room with washer and dryer hookups
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
$14,459
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
9.04%
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%
$289,180
$289.2K
Cap Rate 7%
$206,557
$206.6K
Cap Rate 9%
$160,656
$160.7K
Market Conditions
NOI Build-Up for 1,020 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
$25.7K $25.20/SF
− Vacancy
−$6.4K −$6.30/SF
EGI
$19.3K $18.90/SF
− OpEx
−$4.8K −$4.73/SF
NOI
$14.5K $14.17/SF
Area
Dallas County, TX
Vacancy
25.00%
Lease Rate
$25.20 /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%
$289,180
Cap Rate 7%
$206,557
Cap Rate 9%
$160,656
Alternative Uses
Best Use
Office B
$206.6K
$180.7K – $241.0K
NOI $14,459 @ 7.0% cap · market cap 9.04%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$12.23M
$10.70M – $14.26M
NOI $855,847 @ 7.0% cap · market cap 534.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
393
Businesses Nearby
Explore this area
Business Placement
Demographics for 75146, TX
23,837
Population
9,575
Households
2.5
Avg Household Size
35
Median Age
27%
College-Educated
87%
High-School Grad
34.7 sq mi
ZIP Area
687
Density / Sq Mi
$70,143
Median Household Income
$42,889
Median Earnings
$1,560
Median Rent
$249,000
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 enclosed rooms, an open work area, and a backyard provide flexible commercial space near downtown Lancaster.
Where is this office units located?
The property is located at 509 E 3rd Street Lancaster, TX.
What is the asking price?
The asking price for this property is $160,000.
What are key features of this property?
This property features: Office property built in 1920; Three rooms with closets plus a large open living or workspace; Full bathroom and utility room with washer and dryer hookups
