Updated Office Building with
For Sale
Contact for pricing
5305 Interstate 40 W, Amarillo, TX 79106
Updated in 2020, this office building includes large offices, a conference room, and break room with restrooms.
Property Size4,057 SF
Price / SF$228
Days on Market52
Property Features for 5305 Interstate 40 W
General Information
Standard status
Active
Size
4,057 SF
Class
A
Property subtype
Office
Building Details
Year Built
1985
Year Renovated
2026
Stories
1
Units
1
Listing Agency:
Gaut Whittenburg Emerson CRE
Listed By:
Aaron Emerson, CCIM, SIOR · License #TX477647
(806) 373-3111
Source:
Crexi
Added: Jul 24
Changed: Sep 12
Last Checked: Sep 13 at 5:50AM
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 Gaut Whittenburg Emerson CRE
Investment Insights
Based on property information with market context.
This office building offers six large offices along with a conference room, break room, and a workroom with a data closet. Interior amenities include men’s and women’s restrooms, plus an approximately 868-square-foot basement.
The property includes ample parking and established landscaping. It was updated in 2020.
Overall, the existing configuration supports a traditional office layout with multiple workspaces and shared meeting and support areas.
The property includes ample parking and established landscaping. It was updated in 2020.
Overall, the existing configuration supports a traditional office layout with multiple workspaces and shared meeting and support areas.
Key Highlights
- Updated in 2020 office building with 6 large offices
- Conference room plus break room
- Workroom with data closet
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
$46,554
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
5.03%
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%
$931,080
$931.1K
Cap Rate 7%
$665,057
$665.1K
Cap Rate 9%
$517,267
$517.3K
Market Conditions
NOI Build-Up for 4,057 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
$73.0K $18.00/SF
− Vacancy
−$11.0K −$2.70/SF
EGI
$62.1K $15.30/SF
− OpEx
−$15.5K −$3.82/SF
NOI
$46.6K $11.48/SF
Area
Amarillo, TX
Vacancy
15.00%
Lease Rate
$18.00 /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%
$931,080
Cap Rate 7%
$665,057
Cap Rate 9%
$517,267
Alternative Uses
Best Use
Office B
$665.1K
$581.9K – $775.9K
NOI $46,554 @ 7.0% cap · market cap 5.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$905.8K
$792.6K – $1.06M
NOI $63,406 @ 7.0% cap · market cap 6.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
378
Businesses Nearby
Explore this area
Business Placement
Demographics for 79106, TX
27,692
Population
13,385
Households
2.1
Avg Household Size
37
Median Age
24%
College-Educated
87%
High-School Grad
8.6 sq mi
ZIP Area
3,220
Density / Sq Mi
$54,407
Median Household Income
$36,061
Median Earnings
$995
Median Rent
$163,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office building - Updated in 2020, this office building includes large offices, a conference room, and break room with restrooms.
Where is this office building located?
The property is located at 5305 Interstate 40 W Amarillo, TX.
What is the asking price?
The asking price for this property is $925,000.
What are key features of this property?
This property features: Updated in 2020 office building with 6 large offices; Conference room plus break room; Workroom with data closet
