Denton, TX Retail
For Sale
Contact for pricing
Pending
3651 N Interstate 35, Denton, TX 76207
14,557 SF retail property in Denton, TX for sale.
Property Size14,557 SF
Lot Size2.10 Acres
Days on Market737
Property Features for 3651 N Interstate 35
General Information
Standard status
Pending
Size
14,557 SF
Lot size
2.10 Acres
Property subtype
Retail
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$400,317
Building Details
Year Built
2018
Tenancy
Single
Listing Agency:
SURMOUNT
(332) 345-4222
Listed By:
Glen Kunofsky · License #NY 49KU1129178
Source:
Crexi
Added: Aug 14, 2024
Changed: Aug 14
Last Checked: Aug 20 at 2:03PM
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 SURMOUNT
Investment Insights
Based on property information with market context.
This commercial real estate opportunity features a Duluth Trading Company situated at 3651 N Interstate 35, Denton, TX 76207. The property includes approximately 14,557 rentable square feet of building space on an estimated 2.1-acre parcel of land. The Duluth Trading Company is subject to a 15-year Double Net (NN) lease, which commenced on June 1, 2018. The current annual rent is $400,317, with scheduled increases of 10.00% every 5 years.
Key Highlights
- NN lease with approximately 10 years remaining.
- Tenant is Duluth Trading Company.
- Scheduled rent increases of 10% every 5 years.
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
$213,253
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
4.26%
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%
$4,265,060
$4.3M
Cap Rate 7%
$3,046,471
$3.0M
Cap Rate 9%
$2,369,478
$2.4M
Market Conditions
NOI Build-Up for 14,557 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
$319.7K $21.96/SF
− Vacancy
−$15.0K −$1.03/SF
EGI
$304.6K $20.93/SF
− OpEx
−$91.4K −$6.28/SF
NOI
$213.3K $14.65/SF
Area
Denton, TX
Vacancy
4.70%
Lease Rate
$21.96 /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%
$4,265,060
Cap Rate 7%
$3,046,471
Cap Rate 9%
$2,369,478
Alternative Uses
Best Use
Retail
$3.05M
$2.67M – $3.55M
NOI $213,253 @ 7.0% cap · market cap 4.26%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.55M
$3.98M – $5.31M
NOI $318,365 @ 7.0% cap · market cap 6.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
753
Businesses Nearby
100k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 57%
Dining 41%
Hotels & Casinos 2%
QuikTrip
Shops & Services
56,838 visits/mo
0.1 miles
Chuy's
Dining
25,107 visits/mo
0.5 miles
SONIC Drive In
Dining
12,066 visits/mo
0.3 miles
Dickey's Barbecue Pit
Dining
2,837 visits/mo
0.1 miles
Residence Inn Denton
Hotels & Casinos
1,813 visits/mo
0.1 miles
Demographics for 76207, TX
16,097
Population
7,657
Households
2.1
Avg Household Size
41
Median Age
45%
College-Educated
93%
High-School Grad
40.3 sq mi
ZIP Area
399
Density / Sq Mi
$91,026
Median Household Income
$41,830
Median Earnings
$1,654
Median Rent
$361,400
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - 14,557 SF retail property in Denton, TX for sale.
Where is this storefront property located?
The property is located at 3651 N Interstate 35 Denton, TX.
What is the asking price?
The asking price for this property is $5,003,963.
What are key features of this property?
This property features: NN lease with approximately 10 years remaining.; Tenant is Duluth Trading Company.; Scheduled rent increases of 10% every 5 years.
