Single-Tenant Medical
New
For Sale
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5718 Balcones Drive, Austin, TX 78731
An orthodontic practice occupies the building under a net lease that excludes insurance.
Property Size4,351 SF
Price / SF$545.85
Days on Market5
Property Features for 5718 Balcones Drive
General Information
Standard status
Active
Size
4,351 SF
Property subtype
Office
Occupancy
100%
Additional Details
Cap Rate
6.41%
Building Details
Buildings
1
Tenancy
Single
Listing Agency:
Partners
Listed By:
Connor Watson · License #TX
(512) 580-6025
Source:
Crexi
Added: Sep 22
Changed: Sep 26
Last Checked: Sep 26 at 2:15PM
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 Partners
Investment Insights
Based on property information with market context.
This 4,351-square-foot medical office in Austin is occupied by Austin Orthodontic Arts. The practice has served the neighborhood since 1988. The NN lease has 5.25 years remaining, plus one additional five-year option, with insurance carved out. The property has a 6.41% going-in cap rate based on 2027 income.
Roof, gutters, exterior paint, hot water heater, and HVAC were replaced within the past three years. The building is 4.5 miles from downtown Austin.
Roof, gutters, exterior paint, hot water heater, and HVAC were replaced within the past three years. The building is 4.5 miles from downtown Austin.
Key Highlights
- 4,351‑square‑foot medical office leased to Austin Orthodontic Arts
- NN lease with 5.25 years remaining and one additional 5‑year option; insurance is carved out
- 6.41% going‑in cap rate on 2027 income
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
$88,634
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
3.73%
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%
$1,772,680
$1.8M
Cap Rate 7%
$1,266,200
$1.3M
Cap Rate 9%
$984,822
$984.8K
Market Conditions
NOI Build-Up for 4,351 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
$156.1K $35.88/SF
− Vacancy
−$37.9K −$8.72/SF
EGI
$118.2K $27.16/SF
− OpEx
−$29.5K −$6.79/SF
NOI
$88.6K $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%
$1,772,680
Cap Rate 7%
$1,266,200
Cap Rate 9%
$984,822
Alternative Uses
Best Use
Office B
$1.27M
$1.11M – $1.48M
NOI $88,634 @ 7.0% cap · market cap 3.73%
Second Best
Healthcare Medical
$819.0K
$716.6K – $955.5K
NOI $57,329 @ 7.0% cap · market cap 2.41%
Theoretical Best
Office A
$1.71M
$1.49M – $1.99M
NOI $119,351 @ 7.0% cap · market cap 5.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,973
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 78731, TX
27,240
Population
14,939
Households
1.8
Avg Household Size
40
Median Age
78%
College-Educated
99%
High-School Grad
8.7 sq mi
ZIP Area
3,131
Density / Sq Mi
$102,886
Median Household Income
$69,232
Median Earnings
$1,673
Median Rent
$839,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Austin, TX
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Frequently Asked Questions
What type of property is this?
Medical Office Space - An orthodontic practice occupies the building under a net lease that excludes insurance.
Where is this medical office space located?
The property is located at 5718 Balcones Drive Austin, TX.
What is the asking price?
The asking price for this property is $2,375,000.
What are key features of this property?
This property features: 4,351‑square‑foot medical office leased to Austin Orthodontic Arts; NN lease with 5.25 years remaining and one additional 5‑year option; insurance is carved out; 6.41% going‑in cap rate on 2027 income
