Remodeled Office
New
For Sale
$405,000
509 S Elm Street, Royse City, TX 75189
Office property with updated roofing and air conditioning near I-30.
Property Size1,048 SF
Price / SF$386.45
Days on Market3
Property Features for 509 S Elm Street
General Information
Standard status
Active
Size
1,048 SF
Property subtype
Commercial
Additional Details
Highway Access
Yes
Building Details
Year Built
1980
Year Renovated
2019
Tenancy
Single
Listing Agency:
Berkshire Hathaway HS Stovall
(817) 783-9497
Listed By:
Christine Beckendorf
(817) 783-9497
Source:
Txluxere
Added: Aug 28
Changed: Aug 30
Last Checked: Aug 30 at 12:00AM
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 HS Stovall
Investment Insights
Based on property information with market context.
This office property at 509 S Elm Street in Royse City was built in 1980 and remodeled in 2019. The roof was replaced in 2021, and the air-conditioning system was replaced last year, providing several documented updates to the building. The property is located very close to I-30 and has a long-term renter in place. The listing also identifies an ownership interest held by the agent.
Key Highlights
- Office building at 509 S Elm Street, Royse City, TX 75189
- Remodeled in 2019
- Roof replaced in 2021
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
$17,530
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
4.33%
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%
$350,600
$350.6K
Cap Rate 7%
$250,429
$250.4K
Cap Rate 9%
$194,778
$194.8K
Market Conditions
NOI Build-Up for 1,048 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
$32.2K $30.72/SF
− Vacancy
−$8.8K −$8.42/SF
EGI
$23.4K $22.30/SF
− OpEx
−$5.8K −$5.58/SF
NOI
$17.5K $16.73/SF
Area
Rockwall County, TX
Vacancy
27.40%
Lease Rate
$30.72 /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%
$350,600
Cap Rate 7%
$250,429
Cap Rate 9%
$194,778
Alternative Uses
Best Use
Office B
$250.4K
$219.1K – $292.2K
NOI $17,530 @ 7.0% cap · market cap 4.33%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$789.4K
$690.7K – $920.9K
NOI $55,256 @ 7.0% cap · market cap 13.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
523
Businesses Nearby
Explore this area
Business Placement
Demographics for 75189, TX
37,777
Population
15,331
Households
2.5
Avg Household Size
34
Median Age
30%
College-Educated
93%
High-School Grad
109.9 sq mi
ZIP Area
344
Density / Sq Mi
$118,105
Median Household Income
$56,979
Median Earnings
$2,133
Median Rent
$336,000
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 building - Office property with updated roofing and air conditioning near I-30.
Where is this office building located?
The property is located at 509 S Elm Street Royse City, TX.
What is the asking price?
The asking price for this property is $405,000.
What are key features of this property?
This property features: Office building at 509 S Elm Street, Royse City, TX 75189; Remodeled in 2019; Roof replaced in 2021
