Updated Office Building For
For Sale
Contact for pricing
16850 Diana Ln, Houston, TX 77058
Updated office building with flexible tenancy and parking.
Property Size17,250 SF
Lot Size1.20 Acres
Price / SF$173.91
Days on Market803
Property Features for 16850 Diana Ln
General Information
Standard status
Active
Size
17,250 SF
Class
B
Lot size
1.20 Acres
Property subtype
Office
Occupancy
100%
Lease Type
Gross
Building Details
Tenancy
Multi
Listing Agency:
KW Commercial Houston Clear Lake
(409) 789-7871
Listed By:
Jeff George · License #TX 0463308
Source:
Crexi
Added: May 30, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:15AM
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 KW Commercial Houston Clear Lake
Investment Insights
Based on property information with market context.
This updated, single-story office building, constructed in 1983, offers 17,250 square feet of space on a 1.20-acre lot. The property features 63 surface parking spaces and 15 covered spaces, resulting in a parking ratio of 4.52 spaces per 1,000 square feet. Currently, the building is occupied by three tenants. The owner is willing to lease back half of the building for a 10-year term, divided into two 5-year terms. This arrangement allows a new owner to lease out or occupy the remaining space, potentially qualifying for an SBA loan or retaining existing tenants. Fully leased at fair market rental rates, the property is projected to generate approximately a 9.5% capitalization rate. There are no zoning restrictions on the property.
Key Highlights
- Projected 9.5% capitalization rate at fair market rental rates.
- Owner willing to lease back half of the building for 10 years (two 5‑year terms).
- No zoning restrictions.
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
$201,204
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
6.71%
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%
$4,024,080
$4.0M
Cap Rate 7%
$2,874,343
$2.9M
Cap Rate 9%
$2,235,600
$2.2M
Market Conditions
NOI Build-Up for 17,250 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
$372.6K $21.60/SF
− Vacancy
−$104.3K −$6.05/SF
EGI
$268.3K $15.55/SF
− OpEx
−$67.1K −$3.89/SF
NOI
$201.2K $11.66/SF
Area
Houston, TX
Vacancy
28.00%
Lease Rate
$21.60 /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%
$4,024,080
Cap Rate 7%
$2,874,343
Cap Rate 9%
$2,235,600
Alternative Uses
Best Use
Office B
$2.87M
$2.52M – $3.35M
NOI $201,204 @ 7.0% cap · market cap 6.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.44M
$3.88M – $5.18M
NOI $310,500 @ 7.0% cap · market cap 10.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,105
Businesses Nearby
Explore this area
Business Placement
Demographics for 77058, TX
19,442
Population
11,203
Households
1.7
Avg Household Size
37
Median Age
44%
College-Educated
95%
High-School Grad
8.4 sq mi
ZIP Area
2,315
Density / Sq Mi
$66,471
Median Household Income
$51,423
Median Earnings
$1,362
Median Rent
$244,800
Median Home Value
Market
Vacancy Rate% for Office in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Updated office building with flexible tenancy and parking.
Where is this office building located?
The property is located at 16850 Diana Ln Houston, TX.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Projected **9.5% capitalization rate** at fair market rental rates.; Owner willing to lease back half of the building for 10 years (two 5‑year terms).; No zoning restrictions.
