Second-Floor Office Suite with Courtyard
For Sale
$1,050,000
D201-3624 N Hills Dr, Austin, TX 78731
Second-floor office suite with courtyard views and flexible layout options for multiple office configurations.
Property Size3,088 SF
Price / SF$340.03
Days on Market369
Property Features for D201-3624 N Hills Dr
General Information
Standard status
Active
Size
3,088 SF
Total Parking Spaces
1
Additional Details
Floor
2
Office Units
14
Amenities
outdoor courtyard
Spanish fountain
Building Details
Tenancy
Multi
Listing Agency:
Austin Summit Group
(512) 250-0253
Listed By:
Chrissy Caputo · License #0472689
(512) 748-4650
Source:
Exprealty
Added: Sep 16, 2025
Changed: Sep 11
Last Checked: Sep 18 at 8:05AM
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 Austin Summit Group
Investment Insights
Based on property information with market context.
This second-floor office suite is approximately 3,088 SF and overlooks an outdoor courtyard with a zero-scaped Spanish fountain and mature oak trees. The space is designed to be flexible, with movable walls that can support a range of office configurations.
The offering is part of a complex that includes 14 office spaces plus a common greeting area and kitchen area. As currently set up, 11 of the 14 offices are rented, with leases described as renewable or able to be dissolved, while the remaining offices are open for a new owner to configure as desired. Parking for this unit includes 1 covered assigned spot, with additional parking available as common uncovered spaces.
The building environment is described as being located in the Northwest Hills area, about 5 minutes to Downtown Austin, and the courtyard and landscaping are positioned to be visible from many windows.
The offering is part of a complex that includes 14 office spaces plus a common greeting area and kitchen area. As currently set up, 11 of the 14 offices are rented, with leases described as renewable or able to be dissolved, while the remaining offices are open for a new owner to configure as desired. Parking for this unit includes 1 covered assigned spot, with additional parking available as common uncovered spaces.
The building environment is described as being located in the Northwest Hills area, about 5 minutes to Downtown Austin, and the courtyard and landscaping are positioned to be visible from many windows.
Key Highlights
- About 3,088 SF second‑floor office suite overlooking the outdoor courtyard
- Courtyard features a zero‑scaped Spanish fountain and mature oak trees
- Movable walls support different office configurations
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
$62,905
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
5.99%
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%
$1,258,100
$1.3M
Cap Rate 7%
$898,643
$898.6K
Cap Rate 9%
$698,944
$698.9K
Market Conditions
NOI Build-Up for 3,088 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
$110.8K $35.88/SF
− Vacancy
−$26.9K −$8.72/SF
EGI
$83.9K $27.16/SF
− OpEx
−$21.0K −$6.79/SF
NOI
$62.9K $20.37/SF
Area
Austin, TX
Vacancy
24.30%
Lease Rate
$35.88 /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%
$1,258,100
Cap Rate 7%
$898,643
Cap Rate 9%
$698,944
Alternative Uses
Best Use
Office B
$898.6K
$786.3K – $1.05M
NOI $62,905 @ 7.0% cap · market cap 5.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.21M
$1.06M – $1.41M
NOI $84,706 @ 7.0% cap · market cap 8.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
14
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,836
Businesses Nearby
Explore this area
Business Placement
Demographics for 78731, TX
27,240
Population
14,939
Households
1.8
Avg Household Size
40
Median Age
78%
College-Educated
99%
High-School Grad
8.7 sq mi
ZIP Area
3,131
Density / Sq Mi
$102,886
Median Household Income
$69,232
Median Earnings
$1,673
Median Rent
$839,500
Median Home Value
Market
Vacancy Rate% for Office in Austin, TX
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 units - Second-floor office suite with courtyard views and flexible layout options for multiple office configurations.
Where is this office units located?
The property is located at D201-3624 N Hills Dr Austin, TX.
What is the asking price?
The asking price for this property is $1,050,000.
What are key features of this property?
This property features: About 3,088 SF second‑floor office suite overlooking the outdoor courtyard; Courtyard features a zero‑scaped Spanish fountain and mature oak trees; Movable walls support different office configurations
