Dental Office Investment
For Sale
Contact for pricing
821 School Dr, Poteet, TX 78065
Dental office for sale with attractive cap rate and increases.
Property Size3,400 SF
Price / SF$291.18
Days on Market157
Property Features for 821 School Dr
General Information
Standard status
Active
Size
3,400 SF
Property subtype
Office
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$79,200
Building Details
Year Built
1965
Year Renovated
2016
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Matthews
Listed By:
Antonio Diona · License #CA 02037030
Source:
Crexi
Added: Mar 9
Changed: Aug 8
Last Checked: Aug 8 at 2:43PM
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 Matthews
Investment Insights
Based on property information with market context.
A commercial property currently operating as a dental office is available for purchase. The property offers a 7.5% capitalization rate and includes provisions for 3% annual increases. There is potential for affiliation with a Dental Support Organization (DSO), and future credit enhancement opportunities may be available. The building has a size of 3400 square feet.
Key Highlights
- 7.5% Cap Rate
- Potential DSO Affiliation
- 3% Annual Increases
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
$58,334
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
5.89%
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%
$1,166,680
$1.2M
Cap Rate 7%
$833,343
$833.3K
Cap Rate 9%
$648,156
$648.2K
Market Conditions
NOI Build-Up for 3,400 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
$86.9K $25.56/SF
− Vacancy
−$9.1K −$2.68/SF
EGI
$77.8K $22.88/SF
− OpEx
−$19.4K −$5.72/SF
NOI
$58.3K $17.16/SF
Area
Atascosa County, TX
Vacancy
10.50%
Lease Rate
$25.56 /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%
$1,166,680
Cap Rate 7%
$833,343
Cap Rate 9%
$648,156
Alternative Uses
Best Use
Office B
$833.3K
$729.2K – $972.2K
NOI $58,334 @ 7.0% cap · market cap 5.89%
Second Best
Healthcare Medical
$671.3K
$587.4K – $783.2K
NOI $46,992 @ 7.0% cap · market cap 4.75%
Theoretical Best
Hotel Hospitality
$2.56M
$2.24M – $2.99M
NOI $179,265 @ 7.0% cap · market cap 18.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
185
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78065, TX
12,048
Population
4,105
Households
2.9
Avg Household Size
37
Median Age
12%
College-Educated
81%
High-School Grad
173.9 sq mi
ZIP Area
69
Density / Sq Mi
$63,653
Median Household Income
$33,043
Median Earnings
$959
Median Rent
$136,400
Median Home Value
Market
Vacancy Rate% for Office 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?
Medical Office Space - Dental office for sale with attractive cap rate and increases.
Where is this medical office space located?
The property is located at 821 School Dr Poteet, TX.
What is the asking price?
The asking price for this property is $990,000.
What are key features of this property?
This property features: 7.5% Cap Rate; Potential DSO Affiliation; 3% Annual Increases
