Highway 71 Retail and
For Sale
Contact for pricing
8305 W Highway 71, Austin, TX
10,000 SF retail and office investment property for sale.
Property Size10,000 SF
Lot Size0.48 Acres
Price / SF$256
Days on Market526
Property Features for 8305 W Highway 71
General Information
Standard status
Active
Size
10,000 SF
Lot size
0.48 Acres
Property subtype
RETAIL
Listing Agency:
Dovetail Commercial Real Estate
(512) 468-5353
Listed By:
Michael Bullard
(512) 458-8153
Source:
Moodyscre
Added: Apr 11, 2025
Changed: Sep 4
Last Checked: Sep 18 at 9:59AM
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 Dovetail Commercial Real Estate
Investment Insights
Based on property information with market context.
The property features 10,000 square feet of improvements situated on 1.41 acres of land. The ground floor retail space comprises approximately 6,000 square feet, divided among 4 tenants under NNN leases. The upstairs executive offices offer around 4,000 square feet, split among 7 tenants on Gross leases. The landlord provides executive office tenants with secure access, a common conference room, bathrooms, and a break room. This investment offers stable income and ample opportunity for upside with longstanding tenants at below-market rental rates.
Key Highlights
- Stable income from existing tenants
- Opportunity for increased income through rental rate adjustments
- Substantial 10,000 square feet of improvements on 1.41 acres
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
$203,709
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
7.96%
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%
$4,074,180
$4.1M
Cap Rate 7%
$2,910,129
$2.9M
Cap Rate 9%
$2,263,433
$2.3M
Market Conditions
NOI Build-Up for 10,000 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
$358.8K $35.88/SF
− Vacancy
−$87.2K −$8.72/SF
EGI
$271.6K $27.16/SF
− OpEx
−$67.9K −$6.79/SF
NOI
$203.7K $20.37/SF
Area
Austin, TX
Vacancy
24.30%
Lease Rate
$35.88 /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%
$4,074,180
Cap Rate 7%
$2,910,129
Cap Rate 9%
$2,263,433
Alternative Uses
Best Use
Office B
$2.91M
$2.55M – $3.40M
NOI $203,709 @ 7.0% cap · market cap 7.96%
Second Best
Retail
$2.52M
$2.20M – $2.93M
NOI $176,082 @ 7.0% cap · market cap 6.88%
Theoretical Best
Office A
$3.92M
$3.43M – $4.57M
NOI $274,307 @ 7.0% cap · market cap 10.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
437
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Market
Vacancy Rate% for Office in Austin, TX
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Frequently Asked Questions
What type of property is this?
Retail space - 10,000 SF retail and office investment property for sale.
Where is this retail space located?
The property is located at 8305 W Highway 71 Austin, TX.
What is the asking price?
The asking price for this property is $2,560,000.
What are key features of this property?
This property features: Stable income from existing tenants; Opportunity for increased income through rental rate adjustments; Substantial 10,000 square feet of improvements on 1.41 acres
