New Flex Space with
For Sale
Under Contract
$825,000
8501 CARGO Lane, Amarillo, TX 79118
Commercial Sale, Amarillo, TX
Property Size7,600 SF
Lot Size1.00 Acre
Price / SF$108.55
Days on Market68
Property Features for 8501 CARGO Lane
General Information
Property type
Commercial Sale
Property subtype
Other
Property condition
Under Construction
Zoning description
4000 - SE of Amarillo City Limits
Directions
From I-40 Head south onto Ross and In 5 miles turn Right onto Freight Ln and in 700ft turn right onto to Cargo Ln and in 450ft destination is on your right
Subdivision
4128 - South Fork
Standard status
Active Under Contract
APN
#1 PRECISION PLUMBING & MECHANICAL LLC
Size
7,600 SF
Lot size
1.00 Acre
Taxes and HOA fees
Tax Description
335 BUSINESS PARK # 1, LOT 010, BLK 0002, 1.0300 ACRES
Legal Description
335 BUSINESS PARK # 1, LOT 010, BLK 0002, 1.0300 ACRES
Utilities
Cooling system
Central Air
Amenities
conference room
break room
Building Details
Year built
2025
Building materials
Metal Fab
Roof type
Metal
Listing Agency:
Keller Williams Realty Amarillo
Listed By:
Bobby Tyler
(806) 359-4000
Added: Jul 2
Changed: Aug 19
Last Checked: Sep 7 at 4:06PM
MLS# 26-3198
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 flex-space property combines a warehouse/shop component with a dedicated office buildout on approximately one acre. The 7,600-square-foot facility includes a 60' x 100' foam-insulated shop, four 14' x 14' overhead doors, and two gas unit heaters. Office improvements include three private offices, a conference room, and a reception area at the primary entrance. A break room with a range, microwave, and refrigerator adds practical support space.
Located at 8501 CARGO Lane in Amarillo, Texas, the property has metal-fabric construction, a metal roof, and central air. The building is identified with a 2025 year built and offers a combination of office and shop space for commercial or industrial use.
Located at 8501 CARGO Lane in Amarillo, Texas, the property has metal-fabric construction, a metal roof, and central air. The building is identified with a 2025 year built and offers a combination of office and shop space for commercial or industrial use.
Key Highlights
- 7,600 square feet on approximately one acre
- 60' x 100' foam‑insulated shop
- Four 14' x 14' overhead doors
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
$59,535
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
7.22%
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%
$1,190,700
$1.2M
Cap Rate 7%
$850,500
$850.5K
Cap Rate 9%
$661,500
$661.5K
Market Conditions
NOI Build-Up for 7,600 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
$73.0K $9.60/SF
− Vacancy
−$2.9K −$0.38/SF
EGI
$70.0K $9.22/SF
− OpEx
−$10.5K −$1.38/SF
NOI
$59.5K $7.83/SF
Area
Amarillo, TX
Vacancy
4.00%
Lease Rate
$9.60 /SF/Yr
Expense Ratio
15.00%
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%
$1,190,700
Cap Rate 7%
$850,500
Cap Rate 9%
$661,500
Alternative Uses
Best Use
Warehouse
$850.5K
$744.2K – $992.3K
NOI $59,535 @ 7.0% cap · market cap 7.22%
Second Best
Flex RnD
$779.1K
$681.7K – $909.0K
NOI $54,538 @ 7.0% cap · market cap 6.61%
Theoretical Best
Office A
$1.70M
$1.48M – $1.98M
NOI $118,779 @ 7.0% cap · market cap 14.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
41
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79118, TX
27,608
Population
11,116
Households
2.5
Avg Household Size
35
Median Age
25%
College-Educated
92%
High-School Grad
159.4 sq mi
ZIP Area
173
Density / Sq Mi
$87,011
Median Household Income
$44,141
Median Earnings
$1,328
Median Rent
$224,000
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Office, reception, and warehouse improvements create an efficient setting for commercial or industrial operations.
Where is this flex space located?
The property is located at 8501 CARGO Lane Amarillo, TX.
What is the asking price?
The asking price for this property is $825,000.
What are key features of this property?
This property features: 7,600 square feet on approximately one acre; 60' x 100' foam‑insulated shop; Four 14' x 14' overhead doors
