Restaurant with Upstairs
For Sale
Contact for pricing
9892 E Main St, Houma, LA 70363
Restaurant with bar, buffet, office, and storage areas.
Property Size3,990 SF
Price / SF$100
Days on Market2373
Property Features for 9892 E Main St
General Information
Standard status
Active
Size
3,990 SF
Property subtype
Retail, Office, Self Storage
Building Details
Year Built
1990
Stories
9
Listing Agency:
Keller Williams Realty Bayou Partners
(985) 226-3337
Listed By:
Michelle Parsons · License #LA18238
Source:
Crexi
Added: Mar 2, 2020
Changed: Aug 17
Last Checked: Aug 31 at 7:58AM
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 Keller Williams Realty Bayou Partners
Investment Insights
Based on property information with market context.
This commercial property features a restaurant area of 3990 square feet, complemented by an upstairs office and storage area spanning 733 square feet. The layout includes two bar areas, a buffet area, and seating areas. Additional exterior space is provided by a 118-square-foot storage area and a 240-square-foot screened area. Interior flooring consists of carpet and marble. The sale includes a walk-in freezer, walk-in cooler, hood vent, and two 2-compartment sinks. It is important to note that the building sustained major roof damage and interior water damage from Hurricane Ida, and the listed price reflects an 'AS IS' condition. The sale is subject to approval by the Houma-Terrebonne Airport Commission, as the building is situated on leased land. This property presents an investment opportunity.
Key Highlights
- Two bar areas and buffet area for flexible service options
- Restaurant area offering 3990 sq ft of space
- Upstairs office and storage area: 733 sq ft
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
$34,103
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
8.55%
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%
$682,060
$682.1K
Cap Rate 7%
$487,186
$487.2K
Cap Rate 9%
$378,922
$378.9K
Market Conditions
NOI Build-Up for 3,990 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
$52.7K $13.20/SF
− Vacancy
−$4.0K −$0.99/SF
EGI
$48.7K $12.21/SF
− OpEx
−$14.6K −$3.66/SF
NOI
$34.1K $8.55/SF
Area
Terrebonne County, LA
Vacancy
7.50%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
30.00%
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%
$682,060
Cap Rate 7%
$487,186
Cap Rate 9%
$378,922
Alternative Uses
Best Use
Office B
$893.4K
$781.7K – $1.04M
NOI $62,537 @ 7.0% cap · market cap 15.67%
Second Best
Specialty Retail
$881.8K
$771.6K – $1.03M
NOI $61,729 @ 7.0% cap · market cap 15.47%
Theoretical Best
Office A
$1.10M
$962.4K – $1.28M
NOI $76,991 @ 7.0% cap · market cap 19.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
115
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 70363, LA
25,319
Population
10,449
Households
2.4
Avg Household Size
36
Median Age
8%
College-Educated
75%
High-School Grad
78.4 sq mi
ZIP Area
323
Density / Sq Mi
$44,828
Median Household Income
$33,176
Median Earnings
$1,054
Median Rent
$143,800
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?
Conventional restaurant - Restaurant with bar, buffet, office, and storage areas.
Where is this conventional restaurant located?
The property is located at 9892 E Main St Houma, LA.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: Two bar areas and buffet area for flexible service options; Restaurant area offering 3990 sq ft of space; Upstairs office and storage area: 733 sq ft
