Cordova Square Office
For Sale
$2,375,000
721 Government St, Baton Rouge, LA 70802
Office building for sale with investment or owner-occupant potential.
Property Size19,757 SF
Price / SF$120.21
Days on Market990
Property Features for 721 Government St
General Information
Standard status
Active
Size
19,757 SF
Total Parking Spaces
80
Property subtype
Office
Zoning
C2
Amenities
80 Parking Spaces
Building Details
Year Built
2007
Listing Agency:
Derbes Falgoust Commercial Real Estate, LLC
Listed By:
Scot Guidry · License #37589
(225) 778-5858
Source:
Lacdb.resimplifi
Added: Dec 27, 2023
Changed: Sep 8
Last Checked: Sep 12 at 3:25AM
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 Derbes Falgoust Commercial Real Estate, LLC
Investment Insights
Based on property information with market context.
Cordova Square, situated at 721 Government Street in Baton Rouge, Louisiana, is available for purchase, presenting an opportunity for either an owner-occupant or an investor. The property includes 63 on-site private and gated off-street parking spaces. It features frontage on both Government and Spain Streets, with curbside delivery access available on Government Street. The first floor offers space suitable for a retail or service tenant or user. The location is approximately 4 blocks from the I-110 on/off ramp, 5 blocks from the 19th JDC Clerk of Court/Court House, Baton Rouge City Court, and City Hall, and within 6 blocks of the Federal Courthouse. Perry Dampf (attorneys) occupies the entire second floor. The first and third floors are available in full or in part. Prater Bailey - McCormick - Cazayoux lease part of the 1st floor. Vacant units are available for lease at $22.50 per square foot, full service. The building has a total size of 19757 square feet.
Key Highlights
- Substantial Price Reduction: $375,000 reduction from original price.
- Prime Location on Government Street in downtown Baton Rouge, near I‑110, courthouses, and City Hall.
- Ample Parking: 63 private and gated off‑street parking spaces.
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
$188,971
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%
$3,779,420
$3.8M
Cap Rate 7%
$2,699,586
$2.7M
Cap Rate 9%
$2,099,678
$2.1M
Market Conditions
NOI Build-Up for 19,757 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
$258.4K $13.08/SF
− Vacancy
−$6.5K −$0.33/SF
EGI
$252.0K $12.75/SF
− OpEx
−$63.0K −$3.19/SF
NOI
$189.0K $9.56/SF
Area
Baton Rouge, LA
Vacancy
2.50%
Lease Rate
$13.08 /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%
$3,779,420
Cap Rate 7%
$2,699,586
Cap Rate 9%
$2,099,678
Alternative Uses
Best Use
Office B
$2.70M
$2.36M – $3.15M
NOI $188,971 @ 7.0% cap · market cap 7.96%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.73M
$4.14M – $5.52M
NOI $331,214 @ 7.0% cap · market cap 13.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,510
Businesses Nearby
Explore this area
Business Placement
Demographics for 70802, LA
26,519
Population
13,887
Households
1.9
Avg Household Size
29
Median Age
24%
College-Educated
82%
High-School Grad
7.1 sq mi
ZIP Area
3,735
Density / Sq Mi
$34,082
Median Household Income
$23,215
Median Earnings
$935
Median Rent
$105,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Office building for sale with investment or owner-occupant potential.
Where is this office building located?
The property is located at 721 Government St Baton Rouge, LA.
What is the asking price?
The asking price for this property is $2,375,000.
What are key features of this property?
This property features: Substantial Price Reduction: $375,000 reduction from original price.; Prime Location on Government Street in downtown Baton Rouge, near I‑110, courthouses, and City Hall.; Ample Parking: 63 private and gated off‑street parking spaces.
