Freestanding Office
For Sale
$635,000
5131 Payne Dr, Baton Rouge, LA 70809
C2-zoned office property with reception, conference, private offices, bullpen space, and additional upper-level flexibility.
Property Size3,662 SF
Price / SF$173.40
Days on Market53
Property Features for 5131 Payne Dr
General Information
Standard status
Active
Size
3,662 SF
Building Details
Year Built
1970
Listing Agency:
Berkshire Hathaway HomeServices Preferred, REALTOR
(504) 810-7355
Listed By:
Emily Elwell · License #995701011
Source:
Fiorellaavenue
Added: Jul 10
Changed: Aug 29
Last Checked: Aug 30 at 7:23PM
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 HomeServices Preferred, REALTOR
Investment Insights
Based on property information with market context.
This freestanding office property is configured for professional use, with a reception area, conference room, several private offices, and an open bullpen on the first floor. A separate second-floor area adds adaptable workspace for administrative, collaborative, or specialized functions. The property is zoned C2 and includes on-site parking.
Located on Payne Drive in Baton Rouge, the property sits within the Essen/Bluebonnet corridor, with access to both I-10 and I-12. Its position between Baton Rouge General and Our Lady of the Lake Regional Medical Center places the office near two major medical facilities. The layout and commercial zoning support a range of office-based operations, including medical, legal, and other professional uses.
Located on Payne Drive in Baton Rouge, the property sits within the Essen/Bluebonnet corridor, with access to both I-10 and I-12. Its position between Baton Rouge General and Our Lady of the Lake Regional Medical Center places the office near two major medical facilities. The layout and commercial zoning support a range of office-based operations, including medical, legal, and other professional uses.
Key Highlights
- Freestanding office property with reception area, conference room, private offices, and open bullpen
- Second‑floor area provides additional flexible workspace
- C2 zoning supports office and professional use
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
$35,026
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
5.52%
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%
$700,520
$700.5K
Cap Rate 7%
$500,371
$500.4K
Cap Rate 9%
$389,178
$389.2K
Market Conditions
NOI Build-Up for 3,662 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
$47.9K $13.08/SF
− Vacancy
−$1.2K −$0.33/SF
EGI
$46.7K $12.75/SF
− OpEx
−$11.7K −$3.19/SF
NOI
$35.0K $9.56/SF
Area
Baton Rouge, LA
Vacancy
2.50%
Lease Rate
$13.08 /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%
$700,520
Cap Rate 7%
$500,371
Cap Rate 9%
$389,178
Alternative Uses
Best Use
Office B
$500.4K
$437.8K – $583.8K
NOI $35,026 @ 7.0% cap · market cap 5.52%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$877.0K
$767.4K – $1.02M
NOI $61,391 @ 7.0% cap · market cap 9.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,034
Businesses Nearby
Explore this area
Business Placement
Demographics for 70809, LA
25,302
Population
13,872
Households
1.8
Avg Household Size
40
Median Age
55%
College-Educated
97%
High-School Grad
14.4 sq mi
ZIP Area
1,757
Density / Sq Mi
$81,310
Median Household Income
$55,827
Median Earnings
$1,336
Median Rent
$305,900
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - C2-zoned office property with reception, conference, private offices, bullpen space, and additional upper-level flexibility.
Where is this office building located?
The property is located at 5131 Payne Dr Baton Rouge, LA.
What is the asking price?
The asking price for this property is $635,000.
What are key features of this property?
This property features: Freestanding office property with reception area, conference room, private offices, and open bullpen; Second‑floor area provides additional flexible workspace; C2 zoning supports office and professional use
