Freestanding Office
For Sale
$650,000
900 E Redbud Avenue, McAllen, TX 78504
COMMERCIAL - McAllen, TX
Property Size4,000 SF
Lot Size0.24 Acres
Price / SF$162.50
Days on Market137
Property Features for 900 E Redbud Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
F1
Parking
1
Parking features
On Street
Appliances
Electric Water Heater
Subdivision
Lakes Condominiums
Directions
Traveling North on McColl Rd., turn right on East Redbud. Property is on the right hand side.
Standard status
Active
APN
L249500000014A00,L249500000019B00
Size
4,000 SF
Lot size
0.24 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
4064
Utilities
Heating system
Central
Cooling system
Central Air
Building Details
Year built
2002
Floors in Building
1
Building materials
Stucco
Roof type
Flat
Listing Agency:
RE/MAX Platinum · RE/MAX International
(956) 668-8555
Listed By:
Deborah Tippit
(956) 533-8743
Added: Apr 10
Changed: Aug 4
Last Checked: Aug 24 at 3:06AM
MLS# 483611
Copyright © 2026 Greater McAllen 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 4,000-square-foot office building, completed in 2002, offers a practical mix of enclosed and open workspace. The layout includes a reception area, three private rooms, two large open areas, a kitchen, separate men’s and women’s restrooms, and a laundry room. Stucco construction, a flat roof, central heating, and central air round out the improvements.
Set within a business park near McColl, the property is located just off McColl and near DHR. The site encompasses 0.2351 acres and carries F1 zoning. On-street parking is available, while the building’s existing room arrangement supports a range of office configurations without relying on a single large open plan.
Set within a business park near McColl, the property is located just off McColl and near DHR. The site encompasses 0.2351 acres and carries F1 zoning. On-street parking is available, while the building’s existing room arrangement supports a range of office configurations without relying on a single large open plan.
Key Highlights
- 4,000 SF office building on 0.2351 acres
- F1 zoning
- Reception area, 3 private rooms, and 2 large open areas
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
$53,550
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
8.24%
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%
$1,071,000
$1.1M
Cap Rate 7%
$765,000
$765.0K
Cap Rate 9%
$595,000
$595.0K
Market Conditions
NOI Build-Up for 4,000 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
$84.0K $21.00/SF
− Vacancy
−$12.6K −$3.15/SF
EGI
$71.4K $17.85/SF
− OpEx
−$17.9K −$4.46/SF
NOI
$53.6K $13.39/SF
Area
McAllen, TX
Vacancy
15.00%
Lease Rate
$21.00 /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%
$1,071,000
Cap Rate 7%
$765,000
Cap Rate 9%
$595,000
Alternative Uses
Best Use
Office B
$765.0K
$669.4K – $892.5K
NOI $53,550 @ 7.0% cap · market cap 8.24%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.09M
$950.4K – $1.27M
NOI $76,032 @ 7.0% cap · market cap 11.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,190
Businesses Nearby
Explore this area
Business Placement
Demographics for 78504, TX
56,830
Population
21,417
Households
2.7
Avg Household Size
35
Median Age
40%
College-Educated
86%
High-School Grad
19.6 sq mi
ZIP Area
2,899
Density / Sq Mi
$77,627
Median Household Income
$41,632
Median Earnings
$1,178
Median Rent
$203,900
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?
Office building - Business park property with reception, private rooms, open work areas, kitchen, restrooms, and laundry facilities.
Where is this office building located?
The property is located at 900 E Redbud Avenue McAllen, TX.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: 4,000 SF office building on 0.2351 acres; F1 zoning; Reception area, 3 private rooms, and 2 large open areas
