Allen Corporate Center Office
For Sale
Contact for pricing
Pending
740 North Watters Road, Allen, TX 75013
Four-building office campus in Allen's primary office corridor.
Property Size82,834 SF
Days on Market170
Property Features for 740 North Watters Road
General Information
Standard status
Pending
Size
82,834 SF
Class
B
Property subtype
Office
Zoning
PD-OC
Occupancy
97%
Building Details
Year Built
2017
Buildings
4
Stories
1
Units
4
Listing Agency:
Hudson Peters Commercial
(214) 389-3663
Listed By:
Michelle Hudson · License #TX 629153
Source:
Crexi
Added: Mar 9
Changed: Aug 8
Last Checked: Aug 5 at 3:12PM
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 Hudson Peters Commercial
Investment Insights
Based on property information with market context.
Allen Corporate Center is a four-building office campus situated in the central office area of Allen, Texas, just west of US-75. The location provides good visibility, accessibility, and proximity to retail, dining, and residential areas. The property offers a mix of stable income and potential for future growth. The buildings have efficient floor plans, private entrances, ample parking, and drive-up access, which are attractive to small and midsize office tenants seeking convenience and control. The tenant base includes financial services, healthcare, professional services, construction, and government users. The weighted average lease term is just over 3 years, with near- and mid-term rollover that allows for potential rent increases in a submarket with limited new office supply. The property is suitable for investors seeking consistent income with growth potential, without the complexities of larger office assets. The total property size is 82,834 square feet.
Key Highlights
- Located in the heart of Allen's primary office corridor with strong visibility and excellent access.
- Offers a combination of predictable in‑place cash flow and future upside potential.
- Below replacement cost basis provides downside protection.
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
$1,009,326
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
4.65%
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%
$20,186,520
$20.2M
Cap Rate 7%
$14,418,943
$14.4M
Cap Rate 9%
$11,214,733
$11.2M
Market Conditions
NOI Build-Up for 82,834 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
$1.80M $21.72/SF
− Vacancy
−$453.4K −$5.47/SF
EGI
$1.35M $16.25/SF
− OpEx
−$336.4K −$4.06/SF
NOI
$1.01M $12.18/SF
Area
Allen, TX
Vacancy
25.20%
Lease Rate
$21.72 /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%
$20,186,520
Cap Rate 7%
$14,418,943
Cap Rate 9%
$11,214,733
Alternative Uses
Best Use
Office B
$14.42M
$12.62M – $16.82M
NOI $1,009,326 @ 7.0% cap · market cap 4.65%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$21.96M
$19.21M – $25.62M
NOI $1,536,928 @ 7.0% cap · market cap 7.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,958
Businesses Nearby
Explore this area
Business Placement
Demographics for 75013, TX
48,360
Population
18,341
Households
2.6
Avg Household Size
37
Median Age
65%
College-Educated
97%
High-School Grad
15.0 sq mi
ZIP Area
3,224
Density / Sq Mi
$151,618
Median Household Income
$77,367
Median Earnings
$1,810
Median Rent
$561,000
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 - Four-building office campus in Allen's primary office corridor.
Where is this office building located?
The property is located at 740 North Watters Road Allen, TX.
What is the asking price?
The asking price for this property is $21,700,000.
What are key features of this property?
This property features: Located in the heart of Allen's primary office corridor with strong visibility and excellent access.; Offers a combination of predictable in‑place cash flow and future upside potential.; Below replacement cost basis provides downside protection.
