Central Austin Office Space
For Sale
Contact for pricing
5225 N Lamar, Austin, TX 78751
Office space in central Austin with excellent location and access.
Property Size15,656 SF
Price / SF$357.69
Days on Market103
Property Features for 5225 N Lamar
General Information
Standard status
Active
Size
15,656 SF
Property subtype
Office
Zoning
CS-CO-A-ETOD-RIETOD-NP
Building Details
Stories
2
Units
2
Listing Agency:
Southwest Strategies Group Inc
(512) 458-8153
Listed By:
Sophie Roth · License #TX
Source:
Crexi
Added: May 20
Changed: Aug 14
Last Checked: Aug 28 at 3:53PM
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 Southwest Strategies Group Inc
Investment Insights
Based on property information with market context.
Office space is available in central Austin, situated in the North Lamar corridor. The location is suitable for a company headquarters or for dividing the occupancy between two companies, each occupying 7500 square feet. A secure lot provides space for excess parking. The adjacent property to the south is also available for offers, potentially adding to the overall footprint. The upcoming Orange rail line will pass directly in front of the building, with a stop located half a block away, which is expected to enhance access and foot traffic. The property offers an opportunity for prime signage on N Lamar. The North Lamar corridor is a dynamic area with new high-end developments across the street and established shopping and dining options at Central Market and The Triangle shopping center, located approximately 3 minutes away. Numerous restaurant options are within walking distance. The property provides convenient access to I35 and MoPac via Koenig Ln. The building has a size of 15656 square feet.
Key Highlights
- Prime location in the North Lamar corridor of central Austin.
- Potential for company headquarters or dual occupancy (2 x 7500 SF).
- Future direct access to the Orange rail line (stop 1/2 block away).
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
$318,926
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
5.70%
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%
$6,378,520
$6.4M
Cap Rate 7%
$4,556,086
$4.6M
Cap Rate 9%
$3,543,622
$3.5M
Market Conditions
NOI Build-Up for 15,656 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
$561.7K $35.88/SF
− Vacancy
−$136.5K −$8.72/SF
EGI
$425.2K $27.16/SF
− OpEx
−$106.3K −$6.79/SF
NOI
$318.9K $20.37/SF
Area
Austin, TX
Vacancy
24.30%
Lease Rate
$35.88 /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%
$6,378,520
Cap Rate 7%
$4,556,086
Cap Rate 9%
$3,543,622
Alternative Uses
Best Use
Office B
$4.56M
$3.99M – $5.32M
NOI $318,926 @ 7.0% cap · market cap 5.70%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.14M
$5.37M – $7.16M
NOI $429,454 @ 7.0% cap · market cap 7.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,675
Businesses Nearby
Explore this area
Business Placement
Demographics for 78751, TX
17,071
Population
9,966
Households
1.7
Avg Household Size
30
Median Age
77%
College-Educated
98%
High-School Grad
2.4 sq mi
ZIP Area
7,113
Density / Sq Mi
$81,657
Median Household Income
$53,330
Median Earnings
$1,627
Median Rent
$700,500
Median Home Value
Market
Vacancy Rate% for Office in Austin, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office space in central Austin with excellent location and access.
Where is this office building located?
The property is located at 5225 N Lamar Austin, TX.
What is the asking price?
The asking price for this property is $5,600,000.
What are key features of this property?
This property features: Prime location in the North Lamar corridor of central Austin.; Potential for company headquarters or dual occupancy (2 x 7500 SF).; Future direct access to the Orange rail line (stop 1/2 block away).
