Two-Story Office
For Sale
Contact for pricing
5977 Preston Road, Frisco, TX 75024
Professional two-story office setting with maintained landscaping in Plano near major medical and retail destinations.
Property Size2,792 SF
Price / SF$511.41
Days on Market87
Property Features for 5977 Preston Road
General Information
Standard status
Active
Size
2,792 SF
Class
B
Property subtype
Retail
Zoning
Commercial
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Building Details
Year Built
2013
Stories
2
Tenancy
Single
Listing Agency:
Rockhill Commercial Real Estate
Listed By:
Tonya LaBarbera · License #678307
Source:
Crexi
Added: May 30
Changed: Aug 21
Last Checked: Aug 21 at 8:03PM
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 Rockhill Commercial Real Estate
Investment Insights
Based on property information with market context.
This professional two-story office building provides a dedicated office environment with fully maintained landscaping. The property is offered for sale, and it includes a suite designation as referenced in the listing (Suite 203). The building’s layout supports a straightforward office tenancy for teams that want an established workplace setting.
The property is located in the SE quadrant of 289/Preston Road and Hedgcoxe Road in Plano. It is positioned near well-known healthcare users, including Children’s Medical Center of Plano, UTSW Ambulatory Clinic, and Pediatric Heart Specialists of Plano. The surrounding area also includes restaurants and retail amenities, such as Stonebriar Centre, The Shops at Legacy, Legacy West, and The Star, along with multiple elementary schools, middle schools, and high schools nearby.
For office users and investors seeking an office location with a cluster of medical activity and everyday retail options, this building’s office-focused configuration and maintained exterior make it a practical fit. Its proximity to healthcare and established commercial destinations can support a tenant’s day-to-day client and staff travel needs.
The property is located in the SE quadrant of 289/Preston Road and Hedgcoxe Road in Plano. It is positioned near well-known healthcare users, including Children’s Medical Center of Plano, UTSW Ambulatory Clinic, and Pediatric Heart Specialists of Plano. The surrounding area also includes restaurants and retail amenities, such as Stonebriar Centre, The Shops at Legacy, Legacy West, and The Star, along with multiple elementary schools, middle schools, and high schools nearby.
For office users and investors seeking an office location with a cluster of medical activity and everyday retail options, this building’s office-focused configuration and maintained exterior make it a practical fit. Its proximity to healthcare and established commercial destinations can support a tenant’s day-to-day client and staff travel needs.
Key Highlights
- Professional two‑story office building, built in 2013
- Set in Plano near the intersection of 289/Preston Rd and Hedgcoxe Rd
- Surrounding area includes Children’s Medical Center of Plano, UTSW Ambulatory Clinic, and Pediatric Heart Specialists of Plano
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
$57,277
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
4.01%
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%
$1,145,540
$1.1M
Cap Rate 7%
$818,243
$818.2K
Cap Rate 9%
$636,411
$636.4K
Market Conditions
NOI Build-Up for 2,792 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
$87.8K $31.44/SF
− Vacancy
−$11.4K −$4.09/SF
EGI
$76.4K $27.35/SF
− OpEx
−$19.1K −$6.84/SF
NOI
$57.3K $20.51/SF
Area
Frisco, TX
Vacancy
13.00%
Lease Rate
$31.44 /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%
$1,145,540
Cap Rate 7%
$818,243
Cap Rate 9%
$636,411
Alternative Uses
Best Use
Office B
$818.2K
$716.0K – $954.6K
NOI $57,277 @ 7.0% cap · market cap 4.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.09M
$953.2K – $1.27M
NOI $76,252 @ 7.0% cap · market cap 5.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
798
Businesses Nearby
Explore this area
Business Placement
Demographics for 75024, TX
45,469
Population
20,362
Households
2.2
Avg Household Size
36
Median Age
71%
College-Educated
98%
High-School Grad
13.0 sq mi
ZIP Area
3,498
Density / Sq Mi
$117,445
Median Household Income
$77,783
Median Earnings
$1,820
Median Rent
$566,200
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Professional two-story office setting with maintained landscaping in Plano near major medical and retail destinations.
Where is this office building located?
The property is located at 5977 Preston Road Frisco, TX.
What is the asking price?
The asking price for this property is $1,427,850.
What are key features of this property?
This property features: Professional two‑story office building, built in 2013; Set in Plano near the intersection of 289/Preston Rd and Hedgcoxe Rd; Surrounding area includes Children’s Medical Center of Plano, UTSW Ambulatory Clinic, and Pediatric Heart Specialists of Plano
