Storefront with Large
For Sale
$335,000
540 Ouachita Avenue, Hot Springs, AR 71901
Commercial / Industrial, Hot Springs, AR
Property Size3,171 SF
Price / SF$105.64
Days on Market105
Property Features for 540 Ouachita Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
10
Directions
Left on Ouachita to property on right (540)
Subdivision
HOT SPRINGS SCHOOL DISTRICT
Standard status
Active
Size
3,171 SF
Taxes and HOA fees
Tax Description
BLK98LTPTTHSRBLK98GCTY
Tax Annual Amount
769
Legal Description
BLK98LTPTTHSRBLK98GCTY
Amenities
high ceilings
large windows
natural light
Building Details
Year built
1920
Floors in Building
1
Flooring type
Concrete
Listing Agency:
Trademark Real Estate, Inc.
(501) 318-3200
Listed By:
Kim Walker
(501) 844-5949
Added: Jun 22
Changed: Sep 29
Last Checked: Oct 4 at 10:06PM
MLS# 26025080
Copyright © 2026 Cooperative Arkansas Realtors Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
The 3,171-square-foot storefront at 540 Ouachita Avenue dates to 1920 and has concrete flooring. Tall ceilings and large windows add volume and natural light to the interior.
The property is eligible for a short-term-rental permit.
The property is eligible for a short-term-rental permit.
Key Highlights
- 3,171 square feet of storefront space
- Built in 1920 with concrete flooring
- Tall ceilings and large windows
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
$25,038
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
7.47%
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%
$500,760
$500.8K
Cap Rate 7%
$357,686
$357.7K
Cap Rate 9%
$278,200
$278.2K
Market Conditions
NOI Build-Up for 3,171 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
$38.1K $12.00/SF
− Vacancy
−$2.3K −$0.72/SF
EGI
$35.8K $11.28/SF
− OpEx
−$10.7K −$3.38/SF
NOI
$25.0K $7.90/SF
Area
Garland County, AR
Vacancy
6.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
30.00%
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%
$500,760
Cap Rate 7%
$357,686
Cap Rate 9%
$278,200
Alternative Uses
Best Use
Retail
$357.7K
$313.0K – $417.3K
NOI $25,038 @ 7.0% cap · market cap 7.47%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$579.9K
$507.4K – $676.6K
NOI $40,594 @ 7.0% cap · market cap 12.12%
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
1,635
Businesses Nearby
27k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 56%
Dining 37%
Beauty & Spa 6%
Burger King
Dining
9,887 visits/mo
0.4 miles
Valero Energy
Shops & Services
5,905 visits/mo
0.3 miles
Exxon
Shops & Services
5,087 visits/mo
0.3 miles
U.S. Bank
Shops & Services
3,980 visits/mo
0.3 miles
Rock Paper Scissors
Beauty & Spa
1,725 visits/mo
0.2 miles
Demographics for 71901, AR
29,363
Population
14,952
Households
2
Avg Household Size
43
Median Age
26%
College-Educated
88%
High-School Grad
101.9 sq mi
ZIP Area
288
Density / Sq Mi
$52,410
Median Household Income
$35,604
Median Earnings
$797
Median Rent
$173,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
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Similar Off Market Nearby
- Norman Florist & Greenhouses, Inc. — 620 Greenwood Ave, Hot Springs, AR 71913
- Elegant Gunk — Hot Springs, AR 71913
- Joe Sturgill & Company — 817 Prospect Ave, Hot Springs, AR 71901
Frequently Asked Questions
What type of property is this?
Storefront property - Tall ceilings and large windows bring natural light into the interior.
Where is this storefront property located?
The property is located at 540 Ouachita Avenue Hot Springs, AR.
What is the asking price?
The asking price for this property is $335,000.
What are key features of this property?
This property features: 3,171 square feet of storefront space; Built in 1920 with concrete flooring; Tall ceilings and large windows
