Multi-Tenant Office
For Sale
Contact for pricing
7426 Pennsylvania Drive, Amarillo, TX 79119
Multi-tenant office property with on-site parking and visibility in Southwest Amarillo’s Colonies subdivision.
Property Size6,414 SF
Price / SF$307.76
Days on Market61
Property Features for 7426 Pennsylvania Drive
General Information
Standard status
Active
Size
6,414 SF
Property subtype
Office
Financials
Cap Rate
7.5%
Business Included
Yes
Building Details
Year Built
2023
Tenancy
Multi
Listing Agency:
Coldwell Banker Commercial First Equity
Listed By:
Justin Kite, CCIM, SIOR · License #TX 478313
Source:
Crexi
Added: Jun 9
Changed: Jul 10
Last Checked: Aug 7 at 6:39AM
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 Coldwell Banker Commercial First Equity
Investment Insights
Based on property information with market context.
7426 & 7428 Pennsylvania Drive is a multi-tenant office building totaling 6,414 square feet. The property is presented as professionally maintained and currently configured to support multiple office users within the same building footprint.
Located in the Colonies subdivision of Southwest Amarillo, the asset is positioned along an established office corridor. The offering highlights convenient access and ample on-site parking, with visibility intended to support everyday customer and client traffic.
This property is being offered for sale and is presented with in-place income, with the transaction noted at a 7.5% CAP rate. For buyers or operators seeking a turn-key office investment, the existing multi-tenant configuration can provide a straightforward platform for managing leased office space in a Southwest Amarillo location surrounded by established office, retail, and upscale residential development. The combination of visibility, access, and parking supports practical day-to-day usability for office tenants and their visitors.
Located in the Colonies subdivision of Southwest Amarillo, the asset is positioned along an established office corridor. The offering highlights convenient access and ample on-site parking, with visibility intended to support everyday customer and client traffic.
This property is being offered for sale and is presented with in-place income, with the transaction noted at a 7.5% CAP rate. For buyers or operators seeking a turn-key office investment, the existing multi-tenant configuration can provide a straightforward platform for managing leased office space in a Southwest Amarillo location surrounded by established office, retail, and upscale residential development. The combination of visibility, access, and parking supports practical day-to-day usability for office tenants and their visitors.
Key Highlights
- Year built 2023 multi‑tenant office building at 7426 & 7428 Pennsylvania in Southwest Amarillo’s Colonies subdivision
- Multi‑tenant office setup with in‑place income from existing tenants
- Offered at a 7.5% CAP rate, per listing remarks
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
$73,601
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%
$1,472,020
$1.5M
Cap Rate 7%
$1,051,443
$1.1M
Cap Rate 9%
$817,789
$817.8K
Market Conditions
NOI Build-Up for 6,414 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
$115.5K $18.00/SF
− Vacancy
−$17.3K −$2.70/SF
EGI
$98.1K $15.30/SF
− OpEx
−$24.5K −$3.82/SF
NOI
$73.6K $11.48/SF
Area
Amarillo, TX
Vacancy
15.00%
Lease Rate
$18.00 /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%
$1,472,020
Cap Rate 7%
$1,051,443
Cap Rate 9%
$817,789
Alternative Uses
Best Use
Office B
$1.05M
$920.0K – $1.23M
NOI $73,601 @ 7.0% cap · market cap 3.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.43M
$1.25M – $1.67M
NOI $100,243 @ 7.0% cap · market cap 5.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
364
Businesses Nearby
Explore this area
Business Placement
Demographics for 79119, TX
21,147
Population
9,839
Households
2.1
Avg Household Size
37
Median Age
44%
College-Educated
97%
High-School Grad
99.5 sq mi
ZIP Area
213
Density / Sq Mi
$100,546
Median Household Income
$63,728
Median Earnings
$1,217
Median Rent
$335,700
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 - Multi-tenant office property with on-site parking and visibility in Southwest Amarillo’s Colonies subdivision.
Where is this office building located?
The property is located at 7426 Pennsylvania Drive Amarillo, TX.
What is the asking price?
The asking price for this property is $1,974,000.
What are key features of this property?
This property features: Year built 2023 multi‑tenant office building at 7426 & 7428 Pennsylvania in Southwest Amarillo’s Colonies subdivision; Multi‑tenant office setup with in‑place income from existing tenants; Offered at a 7.5% CAP rate, per listing remarks
