Industrial Flex Building with
For Sale
$2,203,750
5620 FM 1788 lot 4, Midland, TX 79706
Commercial Sale, Midland, TX
Property Size11,375 SF
Lot Size6.18 Acres
Price / SF$193.74
Days on Market275
Property Features for 5620 FM 1788 lot 4
General Information
Property type
Commercial Sale
Property subtype
Other
Property condition
Under Construction
Subdivision
MM6
Standard status
Active
Size
11,375 SF
Lot size
6.18 Acres
Taxes and HOA fees
Tax Annual Amount
1
Amenities
conference room
kitchen/breakroom
bathrooms
storage office
shower
covered wash-bay
fiber internet
Building Details
Year built
2025
Listing Agency:
NRG Realty Group, LLC
(432) 432-7976
Listed By:
Amy Brasher Barnett · License #514276
(432) 352-6714
Added: Nov 24, 2025
Changed: Aug 19
Last Checked: Aug 26 at 7:06AM
MLS# 50087065
Copyright © 2026 Permian Basin 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.
Scheduled for completion in 2025, this 11,375-square-foot flex facility sits on 6.182 acres and combines finished office, warehouse, and service areas. The 2,000-square-foot office includes seven private offices, a conference room, two bathrooms, a kitchen and breakroom, plus a storage office. An unfinished second-floor mezzanine provides up to 2,000 square feet and is plumbed for two bathrooms, showers, and a kitchen.
The fully insulated warehouse includes a 10-ton crane, three drive-through bays with six 14-by-16-foot overhead doors, an additional office, and a bathroom with shower. A 1,875-square-foot covered wash-bay supports the service component. The property also has 3-phase power, 20 GPM water capacity, and fiber internet. Located on FM 1788 in Midland, Texas.
The fully insulated warehouse includes a 10-ton crane, three drive-through bays with six 14-by-16-foot overhead doors, an additional office, and a bathroom with shower. A 1,875-square-foot covered wash-bay supports the service component. The property also has 3-phase power, 20 GPM water capacity, and fiber internet. Located on FM 1788 in Midland, Texas.
Key Highlights
- 11,375 SF building on 6.182 acres
- 2,000 SF office with 7 private offices, conference room, kitchen/breakroom, and 2 bathrooms
- Up to 2,000 SF unfinished mezzanine plumbed for 2 bathrooms, showers, and a kitchen
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
$137,592
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
6.24%
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%
$2,751,840
$2.8M
Cap Rate 7%
$1,965,600
$2.0M
Cap Rate 9%
$1,528,800
$1.5M
Market Conditions
NOI Build-Up for 11,375 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
$218.4K $19.20/SF
− Vacancy
−$34.9K −$3.07/SF
EGI
$183.5K $16.13/SF
− OpEx
−$45.9K −$4.03/SF
NOI
$137.6K $12.10/SF
Area
Midland, TX
Vacancy
16.00%
Lease Rate
$19.20 /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%
$2,751,840
Cap Rate 7%
$1,965,600
Cap Rate 9%
$1,528,800
Alternative Uses
Best Use
Office B
$1.97M
$1.72M – $2.29M
NOI $137,592 @ 7.0% cap · market cap 6.24%
Second Best
Warehouse
$1.77M
$1.55M – $2.06M
NOI $123,897 @ 7.0% cap · market cap 5.62%
Theoretical Best
Office A
$2.68M
$2.35M – $3.13M
NOI $187,824 @ 7.0% cap · market cap 8.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Drive-in doors
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
34
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79706, TX
31,805
Population
12,368
Households
2.6
Avg Household Size
32
Median Age
23%
College-Educated
87%
High-School Grad
689.5 sq mi
ZIP Area
46
Density / Sq Mi
$110,988
Median Household Income
$58,023
Median Earnings
$897
Median Rent
$280,500
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 - Under-construction facility combines office, warehouse, wash-bay, and unfinished mezzanine space.
Where is this flex space located?
The property is located at 5620 FM 1788 lot 4 Midland, TX.
What is the asking price?
The asking price for this property is $2,203,750.
What are key features of this property?
This property features: 11,375 SF building on 6.182 acres; 2,000 SF office with 7 private offices, conference room, kitchen/breakroom, and 2 bathrooms; Up to 2,000 SF unfinished mezzanine plumbed for 2 bathrooms, showers, and a kitchen
