Updated Office
New
For Sale
$430,000
520 S Highway 377, Pilot Point, TX 76258
Flexible commercial office layout with recent building-system and interior improvements.
Property Size1,678 SF
Days on Market7
Property Features for 520 S Highway 377
General Information
Standard status
Active
Size
1,678 SF
Property subtype
Commercial
Zoning
Commercial
Building Details
Building Size
1,678 SF
Year Built
1984
Stories
1
Units
1
Listing Agency:
Beam Real Estate, LLC
(972) 974-2402
Listed By:
Sankar Shanmugasundaram · License #0752563
(972) 974-2402
Source:
1111brokerage
Added: Aug 16
Changed: Aug 17
Last Checked: Aug 21 at 3:00PM
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 Beam Real Estate, LLC
Investment Insights
Based on property information with market context.
This office building at 520 S Highway 377 in Pilot Point, Texas, was constructed in 1984 and has supported several professional and service-oriented uses, including medical, tax, salon, home health care, and child day care operations. The interior includes a private office, a large open area that can be divided into three to four additional offices, and a wheelchair-accessible restroom.
Recent property improvements include a new roof, HVAC system, hot water heater, flooring, and interior paint. Direct access to Highway 377 provides a straightforward connection for occupants and visitors. The building is zoned Commercial, supporting its established office-oriented configuration.
Recent property improvements include a new roof, HVAC system, hot water heater, flooring, and interior paint. Direct access to Highway 377 provides a straightforward connection for occupants and visitors. The building is zoned Commercial, supporting its established office-oriented configuration.
Key Highlights
- 1984 office building at 520 S Highway 377, Pilot Point, TX 76258
- Large open interior area can be divided into 3 to 4 additional offices
- One private office plus a wheelchair‑accessible restroom
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
$23,333
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
5.43%
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%
$466,660
$466.7K
Cap Rate 7%
$333,329
$333.3K
Cap Rate 9%
$259,256
$259.3K
Market Conditions
NOI Build-Up for 1,678 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
$41.5K $24.72/SF
− Vacancy
−$10.4K −$6.18/SF
EGI
$31.1K $18.54/SF
− OpEx
−$7.8K −$4.64/SF
NOI
$23.3K $13.91/SF
Area
Denton County, TX
Vacancy
25.00%
Lease Rate
$24.72 /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%
$466,660
Cap Rate 7%
$333,329
Cap Rate 9%
$259,256
Alternative Uses
Best Use
Office B
$333.3K
$291.7K – $388.9K
NOI $23,333 @ 7.0% cap · market cap 5.43%
Second Best
Healthcare Medical
$324.4K
$283.8K – $378.5K
NOI $22,707 @ 7.0% cap · market cap 5.28%
Theoretical Best
Multifamily LT 5
$23.47M
$20.53M – $27.38M
NOI $1,642,611 @ 7.0% cap · market cap 382.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
46
Businesses Nearby
Explore this area
Business Placement
Demographics for 76258, TX
7,409
Population
3,079
Households
2.4
Avg Household Size
41
Median Age
30%
College-Educated
82%
High-School Grad
90.3 sq mi
ZIP Area
82
Density / Sq Mi
$93,661
Median Household Income
$51,382
Median Earnings
$1,224
Median Rent
$320,200
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 - Flexible commercial office layout with recent building-system and interior improvements.
Where is this office building located?
The property is located at 520 S Highway 377 Pilot Point, TX.
What is the asking price?
The asking price for this property is $430,000.
What are key features of this property?
This property features: 1984 office building at 520 S Highway 377, Pilot Point, TX 76258; Large open interior area can be divided into 3 to 4 additional offices; One private office plus a wheelchair‑accessible restroom
