Freestanding Shell Office
For Sale
$783,000
5647 KPE Way, Tyler, TX 75703
CommercialSale, Tyler, TX
Property Size3,480 SF
Lot Size1.89 Acres
Price / SF$225
Days on Market100
Property Features for 5647 KPE Way
General Information
Property type
Commercial Sale
Property subtype
Office
Property condition
Under Construction
Zoning description
C-1
Parking features
Parking Lot
Subdivision
WEST VILLAGE NORTH U-1
Directions
From the intersection of WSW Loop 323 and Old Jacksonville Hwy, head south on Old Jacksonville Hwy. In approx. 1.14 miles, right right onto Kpe Way. Property will be just ahead in about 400 feet.
Standard status
Active
APN
R218391
Size
3,480 SF
Lot size
1.89 Acres
Utilities
Sewer type
Public Sewer
Heating system
Electric (Heating), Central
Cooling system
Central Air, Electric
Water source
Public
Building Details
Year built
2026
Floors in Building
1
Number of units
1
Roof type
Flat
Listing Agency:
Drake Real Estate
(903) 581-3737
Listed By:
Matthew Marshall · License #75703
(903) 581-3737
Added: May 22
Changed: Aug 21
Last Checked: Aug 29 at 8:06PM
MLS# 21154294
Copyright © 2026 North Texas Real Estate Information Systems, Inc. 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.
This freestanding office property at 5647 KPE Way in Tyler, Texas, is under construction and scheduled for delivery in Summer 2026. The building contains 3,480 square feet and will be delivered in shell condition, allowing the incoming owner to complete the interior for its intended use. The improvements include central electric heating and cooling, a flat roof, public water, and public sewer.
The property occupies 1.887 acres and includes access to 99 shared parking spaces in a parking lot. C-1 zoning applies to the site. The offering is structured around a full-building purchase, with a half-building option listed separately. TxDOT reported traffic counts of 34,726 VPD in 2024.
The property occupies 1.887 acres and includes access to 99 shared parking spaces in a parking lot. C-1 zoning applies to the site. The offering is structured around a full-building purchase, with a half-building option listed separately. TxDOT reported traffic counts of 34,726 VPD in 2024.
Key Highlights
- 3,480‑square‑foot freestanding office building
- 1.887‑acre site at 5647 KPE Way, Tyler, TX
- Shell‑condition delivery planned for Summer 2026
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
$42,028
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
5.37%
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%
$840,560
$840.6K
Cap Rate 7%
$600,400
$600.4K
Cap Rate 9%
$466,978
$467.0K
Market Conditions
NOI Build-Up for 3,480 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
$59.3K $17.04/SF
− Vacancy
−$3.3K −$0.94/SF
EGI
$56.0K $16.10/SF
− OpEx
−$14.0K −$4.03/SF
NOI
$42.0K $12.08/SF
Area
Tyler, TX
Vacancy
5.50%
Lease Rate
$17.04 /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%
$840,560
Cap Rate 7%
$600,400
Cap Rate 9%
$466,978
Alternative Uses
Best Use
Office B
$600.4K
$525.4K – $700.5K
NOI $42,028 @ 7.0% cap · market cap 5.37%
Second Best
Retail
$579.2K
$506.8K – $675.8K
NOI $40,545 @ 7.0% cap · market cap 5.18%
Theoretical Best
Office A
$776.7K
$679.6K – $906.2K
NOI $54,371 @ 7.0% cap · market cap 6.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
34,726 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
283
Businesses Nearby
Explore this area
Business Placement
Demographics for 75703, TX
44,428
Population
20,045
Households
2.2
Avg Household Size
39
Median Age
43%
College-Educated
96%
High-School Grad
55.1 sq mi
ZIP Area
806
Density / Sq Mi
$76,347
Median Household Income
$45,301
Median Earnings
$1,262
Median Rent
$310,500
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 - C-1-zoned office property under construction with shared parking and planned summer 2026 delivery.
Where is this office building located?
The property is located at 5647 KPE Way Tyler, TX.
What is the asking price?
The asking price for this property is $783,000.
What are key features of this property?
This property features: 3,480‑square‑foot freestanding office building; 1.887‑acre site at 5647 KPE Way, Tyler, TX; Shell‑condition delivery planned for Summer 2026
