Flex Space with Dock
For Sale
$990,000
512 NE 2nd Avenue, Amarillo, TX 79107
Commercial Sale, Amarillo, TX
Property Size2,520 SF
Price / SF$392.86
Days on Market181
Property Features for 512 NE 2nd Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
0300 - NE Amarillo in City Limits
Directions
Head North on Buchanan turn right on NE 2nd property is on the right.
Subdivision
0300 - Santa Fe Station
Standard status
Active
APN
216787
Size
2,520 SF
Taxes and HOA fees
Tax Description
HOLLAND'S ADDN, BLK 0213, ALL OF 1 & N/2 OF 2 BLK 212 PLUS N 90FT OF THIS BLK PLUS VACATED ALLEY & STREET
Legal Description
HOLLAND'S ADDN, BLK 0213, ALL OF 1 & N/2 OF 2 BLK 212 PLUS N 90FT OF THIS BLK PLUS VACATED ALLEY & STREET
Utilities
Cooling system
Central Air
Amenities
restrooms
kitchens
conference area
Building Details
Year built
1949
Listing Agency:
FIMC Commercial Realty
Listed By:
Kirk Chudej · License #0604402
(806) 358-7151
Added: Mar 12
Changed: Sep 3
Last Checked: Sep 8 at 6:06PM
MLS# 26-2163
Copyright © 2026 Amarillo Association of REALTORS. 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 2,520-square-foot flex property, built in 1949, combines functional warehouse capabilities with updated office areas. The improvements include 5 dock-high doors, a fully fenced yard, multiple restrooms, 2 kitchens, and a large conference room. Central air serves the building.
The layout supports commercial operations and includes the stated potential for living quarters or additional office use. The property is located within an Opportunity Zone and is part of a Business Improvement Grant and City TIRZ.
The layout supports commercial operations and includes the stated potential for living quarters or additional office use. The property is located within an Opportunity Zone and is part of a Business Improvement Grant and City TIRZ.
Key Highlights
- 2,520 square feet of flex space built in 1949
- 5 dock‑high doors for loading access
- Fully fenced yard
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
$28,917
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
2.92%
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%
$578,340
$578.3K
Cap Rate 7%
$413,100
$413.1K
Cap Rate 9%
$321,300
$321.3K
Market Conditions
NOI Build-Up for 2,520 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
$45.4K $18.00/SF
− Vacancy
−$6.8K −$2.70/SF
EGI
$38.6K $15.30/SF
− OpEx
−$9.6K −$3.82/SF
NOI
$28.9K $11.48/SF
Area
Amarillo, TX
Vacancy
15.00%
Lease Rate
$18.00 /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%
$578,340
Cap Rate 7%
$413,100
Cap Rate 9%
$321,300
Alternative Uses
Best Use
Office B
$413.1K
$361.5K – $482.0K
NOI $28,917 @ 7.0% cap · market cap 2.92%
Second Best
Warehouse
$282.0K
$246.8K – $329.0K
NOI $19,741 @ 7.0% cap · market cap 1.99%
Theoretical Best
Office A
$562.6K
$492.3K – $656.4K
NOI $39,385 @ 7.0% cap · market cap 3.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Dock-high doors
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
1,410
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79107, TX
37,480
Population
12,346
Households
3
Avg Household Size
34
Median Age
6%
College-Educated
61%
High-School Grad
19.6 sq mi
ZIP Area
1,912
Density / Sq Mi
$39,474
Median Household Income
$28,084
Median Earnings
$1,016
Median Rent
$88,400
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?
Flex space - Versatile commercial facility with offices, work areas, kitchens, and a secured outdoor yard.
Where is this flex space located?
The property is located at 512 NE 2nd Avenue Amarillo, TX.
What is the asking price?
The asking price for this property is $990,000.
What are key features of this property?
This property features: 2,520 square feet of flex space built in 1949; 5 dock‑high doors for loading access; Fully fenced yard
