Shell-Condition Office
For Sale
$783,000
5647 KPE Way Option 1, Tyler, TX 75703
Commercial Sale, Tyler, TX
Property Size3,480 SF
Lot Size1.89 Acres
Price / SF$225
Days on Market223
Property Features for 5647 KPE Way Option 1
General Information
Property type
Commercial Sale
Property subtype
Other
Property condition
Under Construction
Lot features
Inside City Limits
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
Size
3,480 SF
Lot size
1.89 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
WEST VILLAGE NORTH U-1 BLOCK 1662 LOT 1C.1
Legal Description
WEST VILLAGE NORTH U-1 BLOCK 1662 LOT 1C.1
Utilities
Sewer type
Public Sewer
Water source
Public
Building Details
Year built
2026
Building materials
Stucco
Listing Agency:
Drake Real Estate & Investments
(903) 581-3737
Listed By:
Matthew Marshall · License #75703
(903) 443-5894
Added: Jan 14
Changed: Aug 20
Last Checked: Aug 25 at 7:06AM
MLS# 26000663
Copyright © 2026 Greater Tyler Association of Realtors. 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 office unit is under construction and scheduled for delivery in Summer 2026. The property will be completed in shell condition, allowing the interior to be finished for the eventual occupant. Construction materials include stucco, and the building is served by public water and public sewer. The available configuration is identified as Option 1, representing the full building, with a separate half-building option also referenced in the offering. The property includes 3,480 square feet on a 1.887-acre parcel. C-1 zoning, shared parking, and reported traffic of 34,726 VPD provide additional context for evaluating the office-oriented commercial asset.
Key Highlights
- 3,480‑square‑foot office unit on a 1.887‑acre parcel
- Under construction with 2026 completion
- Summer 2026 delivery in shell condition
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 units - Scheduled for Summer 2026 delivery with shared parking and C-1 zoning for commercial buildout.
Where is this office units located?
The property is located at 5647 KPE Way Option 1 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 office unit on a 1.887‑acre parcel; Under construction with 2026 completion; Summer 2026 delivery in shell condition
