Flex Space with Highway
New
For Sale
$750,000
2403 State Highway 78 S, Farmersville, TX 75442
CommercialSale, Farmersville, TX
Property Size1,920 SF
Lot Size1.18 Acres
Price / SF$390.63
Days on Market5
Property Features for 2403 State Highway 78 S
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
The Property is located in the ETJ
Parking features
Carport
Lot features
Acreage, Back Yard, Cleared, Lawn, Few Trees
Directions
I30E, exit 73 Farm to Mkt Rd 551 toward Fate, merge onto I30 Frontage Rd, Left on FM 551 N, Continue onto S William E Crawford Ave following Hwy 66E, Left on Farm Rd 1138N, Left on FM 6W, Right on Tx78N.
Standard status
Active
APN
R673900216301
Size
1,920 SF
Lot size
1.18 Acres
Taxes and HOA fees
Tax Description
ABS A0739 E B REED SURVEY, SHEET 2, TRACT 163
Tax Annual Amount
4977
Legal Description
ABS A0739 E B REED SURVEY, SHEET 2, TRACT 163
Utilities
Utilities
Propane
Sewer type
Septic Tank
Heating system
Propane (Heating), Central, Electric (Heating)
Cooling system
Ceiling Fan(s), Electric, Central Air
Building Details
Year built
1963
Floors in Building
1
Number of units
2
Flooring type
Tile, Engineered
Building materials
Brick
Roof type
Composition
Listing Agency:
Keller Williams Frisco Stars · Keller Williams Realty
(972) 712-9898
Listed By:
Jeff Jacobs
(972) 712-9898
Added: Aug 17
Changed: Aug 20
Last Checked: Aug 21 at 8:06AM
MLS# 21331123
Copyright © 2026 North Texas Real Estate Information Systems, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1.18-acre property in Farmersville’s ETJ includes a 1,920-square-foot, three-bedroom, two-bath home that can serve as office space, along with a detached 720-square-foot barn with water and electric service. Interior features include an updated kitchen with granite countertops and a gas cooktop, hardwood flooring in the family room, updated baths, a mud room, and a full utility room. The property also has a two-car carport, a detached two-car carport with storage, and a chain-link dog run.
The site fronts State Highway 78 for 275 feet and is located near Lake Haven and Windsor Farms. Additional improvements include a 2025 water heater for the main home, an updated septic system, replacement windows and doors, a roof update, and updated cabinets. Potential commercial or mixed-use applications are subject to county approval.
The site fronts State Highway 78 for 275 feet and is located near Lake Haven and Windsor Farms. Additional improvements include a 2025 water heater for the main home, an updated septic system, replacement windows and doors, a roof update, and updated cabinets. Potential commercial or mixed-use applications are subject to county approval.
Key Highlights
- 1.18‑acre parcel in the ETJ with 275 feet of State Highway 78 frontage
- 1,920‑square‑foot main home with 3 bedrooms and 2 baths
- Detached 720SF barn with water and electric
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
$24,349
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
3.25%
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%
$486,980
$487.0K
Cap Rate 7%
$347,843
$347.8K
Cap Rate 9%
$270,544
$270.5K
Market Conditions
NOI Build-Up for 1,920 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
$42.2K $21.96/SF
− Vacancy
−$9.7K −$5.05/SF
EGI
$32.5K $16.91/SF
− OpEx
−$8.1K −$4.23/SF
NOI
$24.3K $12.68/SF
Area
Collin County, TX
Vacancy
23.00%
Lease Rate
$21.96 /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%
$486,980
Cap Rate 7%
$347,843
Cap Rate 9%
$270,544
Alternative Uses
Best Use
Industrial
$1.91M
$1.67M – $2.23M
NOI $133,548 @ 7.0% cap · market cap 17.81%
Second Best
Office B
$347.8K
$304.4K – $405.8K
NOI $24,349 @ 7.0% cap · market cap 3.25%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
13
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 75442, TX
11,241
Population
4,060
Households
2.8
Avg Household Size
39
Median Age
18%
College-Educated
85%
High-School Grad
107.6 sq mi
ZIP Area
104
Density / Sq Mi
$84,591
Median Household Income
$48,482
Median Earnings
$1,501
Median Rent
$330,000
Median Home Value
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?
Flex space - Existing residential improvements and a detached utility building support office, storage, or other county-approved commercial applications.
Where is this flex space located?
The property is located at 2403 State Highway 78 S Farmersville, TX.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: 1.18‑acre parcel in the ETJ with 275 feet of State Highway 78 frontage; 1,920‑square‑foot main home with 3 bedrooms and 2 baths; Detached 720SF barn with water and electric
