Updated Mixed-Use Commercial
For Sale
$274,000
901 Spring Street, Hot Springs, AR 71901
Recently updated space near downtown with fenced parking and additional parking across the street.
Property Size1,219 SF
Price / SF$224.77
Days on Market211
Property Features for 901 Spring Street
General Information
Standard status
Active
Size
1,219 SF
Property subtype
Building and Land
Taxes and HOA fees
Annual Taxes
$1,135
Building Details
Building Size
1,219 SF
Year Built
1945
Listing Agency:
Southern Homes Realty - Hot Springs
(501) 520-1006
Listed By:
Kristi Williams
(501) 520-1006
Source:
Whitestonearkansas
Added: Jan 8
Changed: Aug 2
Last Checked: Aug 7 at 1:19AM
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 Southern Homes Realty - Hot Springs
Investment Insights
Based on property information with market context.
This mixed-use commercial property at 901 Spring Street provides 1,219 square feet of recently updated space on three city lots. Improvements have been made both inside and outside, while the enclosed site adds practical parking and flexibility for future customization. The layout can support retail, office, or service-oriented operations, subject to applicable requirements.
The property is near downtown Hot Springs, placing it close to local shopping, dining, entertainment, and area attractions. Parking is available within the fenced grounds, with additional parking located across the street. Built in 1945, the property combines an established commercial setting with updated improvements and room to adapt the space for a range of business concepts.
The property is near downtown Hot Springs, placing it close to local shopping, dining, entertainment, and area attractions. Parking is available within the fenced grounds, with additional parking located across the street. Built in 1945, the property combines an established commercial setting with updated improvements and room to adapt the space for a range of business concepts.
Key Highlights
- 1,219 SF of commercial space
- Three city lots provide additional site flexibility
- Interior and exterior updates completed
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
$11,704
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
4.27%
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%
$234,080
$234.1K
Cap Rate 7%
$167,200
$167.2K
Cap Rate 9%
$130,044
$130.0K
Market Conditions
NOI Build-Up for 1,219 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
$17.6K $14.40/SF
− Vacancy
−$1.9K −$1.60/SF
EGI
$15.6K $12.80/SF
− OpEx
−$3.9K −$3.20/SF
NOI
$11.7K $9.60/SF
Area
Garland County, AR
Vacancy
11.10%
Lease Rate
$14.40 /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%
$234,080
Cap Rate 7%
$167,200
Cap Rate 9%
$130,044
Alternative Uses
Best Use
Office B
$167.2K
$146.3K – $195.1K
NOI $11,704 @ 7.0% cap · market cap 4.27%
Second Best
Retail
$137.5K
$120.3K – $160.4K
NOI $9,625 @ 7.0% cap · market cap 3.51%
Theoretical Best
Office A
$222.9K
$195.1K – $260.1K
NOI $15,605 @ 7.0% cap · market cap 5.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
134
Businesses Nearby
Explore this area
Business Placement
Demographics for 71901, AR
29,363
Population
14,952
Households
2
Avg Household Size
43
Median Age
26%
College-Educated
88%
High-School Grad
101.9 sq mi
ZIP Area
288
Density / Sq Mi
$52,410
Median Household Income
$35,604
Median Earnings
$797
Median Rent
$173,400
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?
Mixed-use property - Recently updated space near downtown with fenced parking and additional parking across the street.
Where is this mixed-use property located?
The property is located at 901 Spring Street Hot Springs, AR.
What is the asking price?
The asking price for this property is $274,000.
What are key features of this property?
This property features: 1,219 SF of commercial space; Three city lots provide additional site flexibility; Interior and exterior updates completed
