Two-Unit Office Property with
For Sale
$2,999,999
757 S 1040 W, Payson, UT 84651
COMMERCIAL - Payson, UT
Property Size12,212 SF
Lot Size0.14 Acres
Price / SF$245.66
Days on Market270
Property Features for 757 S 1040 W
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
Commercial
Subdivision
PAYSON PROFESSIONAL PLAZA CONDOS
Standard status
Active
APN
49-867-0201
Lot size
0.14 Acres
Taxes and HOA fees
Tax Annual Amount
14312
Building Details
Year built
2017
Listing Agency:
KW WESTFIELD · Keller Williams Realty
(801) 850-5600
Listed By:
Paul W Gardner
Added: Nov 18, 2025
Changed: Aug 4
Last Checked: Aug 15 at 12:06PM
MLS# 2123409
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Investment Insights
Based on property information with market context.
Built in 2017, this commercial office property includes two professional office units, each measuring approximately 3,053 square feet. A matching 3,053-square-foot unfinished basement serves each unit, offering additional storage or future build-out space. The layout accommodates professional, medical, dental, and personal-service uses, subject to applicable requirements.
One office unit is occupied by a dental practice under a lease with approximately 7 years remaining. The adjoining unit is vacant, providing an office configuration that combines an existing tenant with available space. The property is located near I-15 and 800 South at 757 and 759 S 1040 W in Payson, Utah, with access from a commercial corridor. The parcel measures 0.14 acres and carries Commercial zoning.
One office unit is occupied by a dental practice under a lease with approximately 7 years remaining. The adjoining unit is vacant, providing an office configuration that combines an existing tenant with available space. The property is located near I-15 and 800 South at 757 and 759 S 1040 W in Payson, Utah, with access from a commercial corridor. The parcel measures 0.14 acres and carries Commercial zoning.
Key Highlights
- Two office units, each approximately 3,053 sq ft
- Each unit includes a matching 3,053 sq ft unfinished basement
- One unit leased to a dental office with approximately 7 years remaining
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
$171,456
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
5.72%
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%
$3,429,120
$3.4M
Cap Rate 7%
$2,449,371
$2.4M
Cap Rate 9%
$1,905,067
$1.9M
Market Conditions
NOI Build-Up for 12,212 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
$293.1K $24.00/SF
− Vacancy
−$64.5K −$5.28/SF
EGI
$228.6K $18.72/SF
− OpEx
−$57.2K −$4.68/SF
NOI
$171.5K $14.04/SF
Area
Utah County, UT
Vacancy
22.00%
Lease Rate
$24.00 /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%
$3,429,120
Cap Rate 7%
$2,449,371
Cap Rate 9%
$1,905,067
Alternative Uses
Best Use
Office B
$2.45M
$2.14M – $2.86M
NOI $171,456 @ 7.0% cap · market cap 5.72%
Second Best
Healthcare Medical
$2.10M
$1.84M – $2.45M
NOI $147,197 @ 7.0% cap · market cap 4.91%
Theoretical Best
Office A
$3.37M
$2.95M – $3.93M
NOI $235,643 @ 7.0% cap · market cap 7.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
324
Businesses Nearby
Explore this area
Business Placement
Demographics for 84651, UT
28,416
Population
8,956
Households
3.2
Avg Household Size
29
Median Age
29%
College-Educated
94%
High-School Grad
126.7 sq mi
ZIP Area
224
Density / Sq Mi
$94,152
Median Household Income
$37,170
Median Earnings
$1,398
Median Rent
$423,200
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Commercially zoned office property with professional, medical, dental, and personal-service use potential.
Where is this office units located?
The property is located at 757 S 1040 W Payson, UT.
What is the asking price?
The asking price for this property is $2,999,999.
What are key features of this property?
This property features: Two office units, each approximately 3,053 sq ft; Each unit includes a matching 3,053 sq ft unfinished basement; One unit leased to a dental office with approximately 7 years remaining
