Leased Office Condo
For Sale
$1,100,000
800 W Highway 290 # D, Dripping Springs, TX 78620
Office condo within a commercial complex with 4,000 SF and one available suite for occupancy or investment.
Property Size4,000 SF
Price / SF$275
Days on Market407
Property Features for 800 W Highway 290 # D
General Information
Standard status
Active
Size
4,000 SF
Property subtype
Office
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$12,762
Building Details
Building Size
4,000 SF
Year Built
2001
Listing Agency:
Friedman Real Estate, Inc.
Listed By:
Josh Friedman · License #0451763
(512) 892-9934
Source:
Localcolorrealestateaustin
Added: Jul 28, 2025
Changed: Sep 4
Last Checked: Sep 7 at 8:15AM
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 Friedman Real Estate, Inc.
Investment Insights
Based on property information with market context.
Located within a well-established commercial condo complex, this 4,000 SF office property offers a flexible layout suitable for a range of professional uses. The building is currently leased out with the exception of one suite, providing an owner-user option to occupy a portion while generating income, or an investor option for a predominantly leased asset.
The property is positioned just off Highway 290 in Dripping Springs, providing convenient access for clients and tenants. It is described as being in one of the area’s desirable business corridors with visibility from the highway-adjacent location, supporting straightforward client access and tenant visibility.
The property is positioned just off Highway 290 in Dripping Springs, providing convenient access for clients and tenants. It is described as being in one of the area’s desirable business corridors with visibility from the highway-adjacent location, supporting straightforward client access and tenant visibility.
Key Highlights
- 4,000 SF office condo in a well‑established commercial condo complex
- Leased with the exception of one suite, available for occupancy or investment
- Located just off Highway 290 for client and tenant access
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
$95,382
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
8.67%
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%
$1,907,640
$1.9M
Cap Rate 7%
$1,362,600
$1.4M
Cap Rate 9%
$1,059,800
$1.1M
Market Conditions
NOI Build-Up for 4,000 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
$168.0K $42.00/SF
− Vacancy
−$40.8K −$10.21/SF
EGI
$127.2K $31.79/SF
− OpEx
−$31.8K −$7.95/SF
NOI
$95.4K $23.85/SF
Area
Hays County, TX
Vacancy
24.30%
Lease Rate
$42.00 /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%
$1,907,640
Cap Rate 7%
$1,362,600
Cap Rate 9%
$1,059,800
Alternative Uses
Best Use
Office B
$1.36M
$1.19M – $1.59M
NOI $95,382 @ 7.0% cap · market cap 8.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.67M
$1.46M – $1.95M
NOI $117,047 @ 7.0% cap · market cap 10.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
802
Businesses Nearby
Explore this area
Business Placement
Demographics for 78620, TX
20,493
Population
7,929
Households
2.6
Avg Household Size
43
Median Age
62%
College-Educated
97%
High-School Grad
175.6 sq mi
ZIP Area
117
Density / Sq Mi
$146,551
Median Household Income
$58,583
Median Earnings
$1,674
Median Rent
$624,800
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 units - Office condo within a commercial complex with 4,000 SF and one available suite for occupancy or investment.
Where is this office units located?
The property is located at 800 W Highway 290 # D Dripping Springs, TX.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: 4,000 SF office condo in a well‑established commercial condo complex; Leased with the exception of one suite, available for occupancy or investment; Located just off Highway 290 for client and tenant access
