Former Bank Branch Office
For Sale
$1,800,000
865 Highway 20/81, McDonough, GA 30253
Commercial Sale, Mcdonough, GA
Property Size3,591 SF
Lot Size2.67 Acres
Price / SF$501.25
Days on Market244
Property Features for 865 Highway 20/81
General Information
Property type
Commercial Sale
Property subtype
Office
Parking
30
Parking features
Parking Lot
Accessibility
Accessible Approach with Ramp
Lot features
Corner Lot, Level
Directions
GPS
Standard status
Active
APN
093A01182000
Size
3,591 SF
Lot size
2.67 Acres
Taxes and HOA fees
Tax Year
24
Tax Annual Amount
19080
Utilities
Utilities
Cable Available
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
2002
Flooring type
Tile, Carpet
Building materials
Brick, Stone
Roof type
Composition
Listing Agency:
Chapman Group Realty, Inc.
(678) 782-5995
Listed By:
Joseph F Chapman · License #346657
(678) 878-0215
Added: Dec 19, 2025
Changed: Aug 19
Last Checked: Aug 20 at 10:06AM
MLS# 10796644
Copyright © 2026 Georgia Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This former bank branch office building is positioned on a 2.67-acre site and includes a total building area of 3,591 square feet. The property is set up for flexible reuse as a single-tenant office or related service use, and the site configuration also allows for a potential second build or expansion based on the existing lot size.
Located on the highly traveled Highway 20/81 corridor in McDonough, the property is described as having strong visibility and convenient access to I-75. The remarks also note that Highway 20/81 is currently being widened, which is intended to enhance traffic flow.
The building’s placement within a commercial district surrounded by medical, fitness, entertainment, restaurant, retail, and professional office users supports a steady day-to-day customer base for service-oriented operations.
Located on the highly traveled Highway 20/81 corridor in McDonough, the property is described as having strong visibility and convenient access to I-75. The remarks also note that Highway 20/81 is currently being widened, which is intended to enhance traffic flow.
The building’s placement within a commercial district surrounded by medical, fitness, entertainment, restaurant, retail, and professional office users supports a steady day-to-day customer base for service-oriented operations.
Key Highlights
- Former bank branch with 3,500+ SF building on a 2.67‑acre site
- Located on the highly traveled Hwy 20/81 corridor with strategic visibility and access
- Year built 2002; brick and stone construction with composition roof
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
$57,709
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
3.21%
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%
$1,154,180
$1.2M
Cap Rate 7%
$824,414
$824.4K
Cap Rate 9%
$641,211
$641.2K
Market Conditions
NOI Build-Up for 3,591 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
$82.7K $23.04/SF
− Vacancy
−$5.8K −$1.61/SF
EGI
$76.9K $21.43/SF
− OpEx
−$19.2K −$5.36/SF
NOI
$57.7K $16.07/SF
Area
Henry County, GA
Vacancy
7.00%
Lease Rate
$23.04 /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%
$1,154,180
Cap Rate 7%
$824,414
Cap Rate 9%
$641,211
Alternative Uses
Best Use
Specialty Retail
$824.4K
$721.4K – $961.8K
NOI $57,709 @ 7.0% cap · market cap 3.21%
Second Best
Retail
$721.6K
$631.4K – $841.8K
NOI $50,509 @ 7.0% cap · market cap 2.81%
Theoretical Best
Office A
$1.00M
$878.4K – $1.17M
NOI $70,268 @ 7.0% cap · market cap 3.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
740
Businesses Nearby
Explore this area
Business Placement
Demographics for 30253, GA
62,025
Population
22,889
Households
2.7
Avg Household Size
36
Median Age
30%
College-Educated
93%
High-School Grad
46.9 sq mi
ZIP Area
1,322
Density / Sq Mi
$81,601
Median Household Income
$43,433
Median Earnings
$1,627
Median Rent
$281,000
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 - Former bank branch office building on a 2.67-acre site with ample parking off Highway 20/81.
Where is this office building located?
The property is located at 865 Highway 20/81 McDonough, GA.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: Former bank branch with 3,500+ SF building on a 2.67‑acre site; Located on the highly traveled Hwy 20/81 corridor with strategic visibility and access; Year built 2002; brick and stone construction with composition roof
