Mixed-Use
For Sale
$1,250,000
5508 Padre Blvd., South Padre Island, TX 78597
Commercial Sale, South Padre Island, TX
Property Size3,964 SF
Lot Size0.20 Acres
Price / SF$315.34
Days on Market796
Property Features for 5508 Padre Blvd.
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
PBC
Subdivision
Fiesta Isles
Elementary school district
Point Isabel ISD
Middle school district
Point Isabel ISD
High school district
Point Isabel ISD
Standard status
Active
Size
3,964 SF
Lot size
0.20 Acres
Taxes and HOA fees
Tax Year
2023
Tax Annual Amount
11250
Building Details
Year built
2009
Number of units
2
Listing Agency:
Troy Giles Realty
(956) 761-2040
Listed By:
Edmundo Laguera · License #0433206
(956) 299-0507
Added: Jul 20, 2024
Changed: Sep 4
Last Checked: Sep 22 at 11:06PM
MLS# 101446
Copyright © 2026 South Padre Island Board 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 mixed-use property comprises a 3,964-square-foot building completed in 2009. The property information identifies the building for multiple uses and reports PBC zoning.
The parcel contains 0.204 acres at 5508 Padre Blvd. in South Padre Island, Texas 78597. The asset is located in Cameron County.
The parcel contains 0.204 acres at 5508 Padre Blvd. in South Padre Island, Texas 78597. The asset is located in Cameron County.
Key Highlights
- 3,964‑square‑foot building completed in 2009
- 0.204‑acre parcel
- PBC zoning
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
$40,136
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
3.21%
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%
$802,720
$802.7K
Cap Rate 7%
$573,371
$573.4K
Cap Rate 9%
$445,956
$446.0K
Market Conditions
NOI Build-Up for 3,964 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
$71.4K $18.00/SF
− Vacancy
−$7.1K −$1.80/SF
EGI
$64.2K $16.20/SF
− OpEx
−$24.1K −$6.07/SF
NOI
$40.1K $10.13/SF
Area
Cameron County, TX
Vacancy
10.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$802,720
Cap Rate 7%
$573,371
Cap Rate 9%
$445,956
Alternative Uses
Best Use
Mixed Use
$573.4K
$501.7K – $668.9K
NOI $40,136 @ 7.0% cap · market cap 3.21%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$682.5K
$597.2K – $796.3K
NOI $47,777 @ 7.0% cap · market cap 3.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
337
Businesses Nearby
Explore this area
Business Placement
Demographics for 78597, TX
2,479
Population
5,895
Households
0.4
Avg Household Size
56
Median Age
53%
College-Educated
92%
High-School Grad
8.8 sq mi
ZIP Area
282
Density / Sq Mi
$61,357
Median Household Income
$36,843
Median Earnings
$1,421
Median Rent
$508,800
Median Home Value
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Frequently Asked Questions
What type of property is this?
Mixed-use property - The 2009 building is zoned PBC and identified for multiple uses.
Where is this mixed-use property located?
The property is located at 5508 Padre Blvd. South Padre Island, TX.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: 3,964‑square‑foot building completed in 2009; 0.204‑acre parcel; PBC zoning
