Flex Space with Drive-Thru
For Sale
$274,900
7423 Highway 271 lot 2, Fort Smith, AR 72908
Land, Fort Smith, AR
Property Size4,500 SF
Lot Size0.46 Acres
Price / SF$61.09
Days on Market184
Property Features for 7423 Highway 271 lot 2
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Southland Indust Park
Lot features
In Subdivision
Elementary school
Cavanaugh
Middle school
Ramsey
High school
Southside
Directions
From Green Papaya on Hwy 271 - Head south on Hwy 271, the property will be on left.
Standard status
Active
APN
17255-0002-00000-02
Lot size
0.46 Acres
Taxes and HOA fees
Tax Description
PT LT 2
Tax Annual Amount
1267
Legal Description
PT LT 2
Utilities
Sewer type
Public Sewer
Amenities
fenced-in side yard
Listing Agency:
Keller Williams Platinum Realty · Keller Williams Realty
(479) 434-3000
Listed By:
The Grinnell Group
(479) 434-3000
Added: Feb 17
Changed: Aug 19
Last Checked: Aug 20 at 11:06AM
MLS# 1087114
Copyright © 2026 Western River Valley Board 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 flex space offers a combination of front-of-building customer space and back-of-building warehouse functionality. The property includes a 4,500 SF commercial building with approximately 1,500 SF of retail/office/restaurant space in the front, featuring a drive-thru window. The rear portion includes a warehouse with office space, and there is also a fenced-in side yard.
The building sits on a 0.4551-acre lot in Fort Smith, AR. Sewer service is provided via public sewer.
The layout supports tenants or users who need both customer-facing space and warehouse/storage space under one roof, with outdoor enclosure from the fenced side yard.
The building sits on a 0.4551-acre lot in Fort Smith, AR. Sewer service is provided via public sewer.
The layout supports tenants or users who need both customer-facing space and warehouse/storage space under one roof, with outdoor enclosure from the fenced side yard.
Key Highlights
- 4,500 SF commercial flex space building
- Approximately 1,500 SF front retail/office/restaurant space with drive‑thru window
- Rear warehouse with office space
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
$24,324
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
8.85%
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%
$486,480
$486.5K
Cap Rate 7%
$347,486
$347.5K
Cap Rate 9%
$270,267
$270.3K
Market Conditions
NOI Build-Up for 4,500 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
$40.5K $9.00/SF
− Vacancy
−$3.1K −$0.68/SF
EGI
$37.4K $8.32/SF
− OpEx
−$13.1K −$2.91/SF
NOI
$24.3K $5.41/SF
Area
Sebastian County, AR
Vacancy
7.60%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
35.00%
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%
$486,480
Cap Rate 7%
$347,486
Cap Rate 9%
$270,267
Alternative Uses
Best Use
Flex RnD
$347.5K
$304.1K – $405.4K
NOI $24,324 @ 7.0% cap · market cap 8.85%
Second Best
Warehouse
$293.8K
$257.0K – $342.7K
NOI $20,563 @ 7.0% cap · market cap 7.48%
Theoretical Best
Healthcare Medical
$957.4K
$837.7K – $1.12M
NOI $67,019 @ 7.0% cap · market cap 24.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
216
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 72908, AR
14,310
Population
6,374
Households
2.2
Avg Household Size
38
Median Age
30%
College-Educated
92%
High-School Grad
7.7 sq mi
ZIP Area
1,858
Density / Sq Mi
$68,697
Median Household Income
$43,234
Median Earnings
$886
Median Rent
$181,600
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Flex space - Front retail/office/restaurant space with a drive-thru window, plus a back warehouse with office and a fenced side yard.
Where is this flex space located?
The property is located at 7423 Highway 271 lot 2 Fort Smith, AR.
What is the asking price?
The asking price for this property is $274,900.
What are key features of this property?
This property features: 4,500 SF commercial flex space building; Approximately 1,500 SF front retail/office/restaurant space with drive‑thru window; Rear warehouse with office space
