Office Building with Storage
For Sale
$499,900
809 W 2nd Street, Little Rock, AR 72201
Individual offices and a floored attic provide a practical configuration for professional use and storage.
Property Size2,666 SF
Days on Market31
Property Features for 809 W 2nd Street
General Information
Standard status
Active
Size
2,666 SF
Total Parking Spaces
4
Property subtype
Commercial
Building Details
Building Size
2,666 SF
Year Built
1940
Stories
2
Listing Agency:
McKimmey Associates Realtors Nlr
(501) 960-8507
Listed By:
Marilyn McKimmey
(501) 960-8507
Source:
Proeliterealty
Added: Jul 21
Changed: Aug 18
Last Checked: Aug 19 at 3:19PM
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 McKimmey Associates Realtors Nlr
Investment Insights
Based on property information with market context.
Built in 1940, this office property offers multiple individual offices along with a floored attic that adds dedicated storage capacity. Interior character includes original hardwood flooring, a preserved staircase and bannister, original molding, and a window seat.
The property is located at 809 W 2nd Street in Little Rock’s downtown area, with the courthouse five blocks away. Its established setting and office-oriented layout support a range of professional workspace configurations.
The property is located at 809 W 2nd Street in Little Rock’s downtown area, with the courthouse five blocks away. Its established setting and office-oriented layout support a range of professional workspace configurations.
Key Highlights
- Individual office layout
- Floored attic provides additional storage
- Original hardwood flooring
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
$25,383
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
5.08%
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%
$507,660
$507.7K
Cap Rate 7%
$362,614
$362.6K
Cap Rate 9%
$282,033
$282.0K
Market Conditions
NOI Build-Up for 2,666 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
$38.1K $14.28/SF
− Vacancy
−$4.2K −$1.59/SF
EGI
$33.8K $12.69/SF
− OpEx
−$8.5K −$3.17/SF
NOI
$25.4K $9.52/SF
Area
Little Rock, AR
Vacancy
11.10%
Lease Rate
$14.28 /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%
$507,660
Cap Rate 7%
$362,614
Cap Rate 9%
$282,033
Alternative Uses
Best Use
Office B
$362.6K
$317.3K – $423.1K
NOI $25,383 @ 7.0% cap · market cap 5.08%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$484.3K
$423.8K – $565.0K
NOI $33,902 @ 7.0% cap · market cap 6.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,895
Businesses Nearby
Explore this area
Business Placement
Demographics for 72201, AR
961
Population
628
Households
1.5
Avg Household Size
44
Median Age
78%
College-Educated
100%
High-School Grad
1.2 sq mi
ZIP Area
801
Density / Sq Mi
$112,045
Median Household Income
$71,188
Median Earnings
$1,344
Median Rent
$262,300
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 - Individual offices and a floored attic provide a practical configuration for professional use and storage.
Where is this office building located?
The property is located at 809 W 2nd Street Little Rock, AR.
What is the asking price?
The asking price for this property is $499,900.
What are key features of this property?
This property features: Individual office layout; Floored attic provides additional storage; Original hardwood flooring
