Fenced Warehouse
For Sale
$1,500,000
Hondo, TX 78861, Hondo, TX 78861
Commercial Sale, Hondo, TX
Property Size23,050 SF
Lot Size4.00 Acres
Price / SF$65.08
Days on Market63
Property Features
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Light Industrial
Security features
Security System
Lot features
Corner Lot
Elementary school
Hondo
Subdivision
87-Medina County
Standard status
Active
Size
23,050 SF
Lot size
4.00 Acres
Utilities
Utilities
Cable Available
Sewer type
Public Sewer
Heating system
Electric (Heating), Central
Cooling system
Central Air, Electric
Water source
Public
Amenities
keypad gated entry
Building Details
Floors in Building
1
Number of units
1
Flooring type
Tile
Building materials
Metal Siding
Roof type
Metal
Listing Agency:
Val Verde Realty
Listed By:
James McBee · License #0373143
(830) 703-6454
Added: Jul 12
Changed: Sep 7
Last Checked: Sep 12 at 3:06AM
MLS# 120340
Copyright © 2026 Kerrville 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.
The property includes 23,050 SF across three buildings on a 4.0-acre tract. The principal 14,800 SF warehouse contains approximately 10,000+/- SF of climate-controlled area supported by 17+/- tons, along with loading well access. A separate 1,600 SF office building and a 6,650 SF open-front equipment building expand the facility’s functional range. The site also includes two electrically serviced shipping containers, public water and sewer, metal siding, and a metal roof.
A perimeter fence, keypad-controlled gate, and central paved yard support controlled access and circulation. The property is located at 568 Carter Street on Hondo’s west side, across from a golf course and near the airport, with San Antonio approximately 45 minutes east. Zoned Light Industrial, the tract includes vacant area suitable for expansion.
A perimeter fence, keypad-controlled gate, and central paved yard support controlled access and circulation. The property is located at 568 Carter Street on Hondo’s west side, across from a golf course and near the airport, with San Antonio approximately 45 minutes east. Zoned Light Industrial, the tract includes vacant area suitable for expansion.
Key Highlights
- 23,050 SF of improvements distributed among three buildings
- 14,800 SF warehouse with 10,000+/- SF climate‑controlled space and 17+/- tons
- 1,600 SF standalone office building and 6,650 SF open‑front equipment building
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
$137,954
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
9.20%
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%
$2,759,080
$2.8M
Cap Rate 7%
$1,970,771
$2.0M
Cap Rate 9%
$1,532,822
$1.5M
Market Conditions
NOI Build-Up for 23,050 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
$207.5K $9.00/SF
− Vacancy
−$10.4K −$0.45/SF
EGI
$197.1K $8.55/SF
− OpEx
−$59.1K −$2.56/SF
NOI
$138.0K $5.98/SF
Area
Medina County, TX
Vacancy
5.00%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
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%
$2,759,080
Cap Rate 7%
$1,970,771
Cap Rate 9%
$1,532,822
Alternative Uses
Best Use
Flex RnD
$3.47M
$3.03M – $4.05M
NOI $242,717 @ 7.0% cap · market cap 16.18%
Second Best
Warehouse
$2.39M
$2.09M – $2.79M
NOI $167,516 @ 7.0% cap · market cap 11.17%
Theoretical Best
Office A
$5.88M
$5.14M – $6.86M
NOI $411,576 @ 7.0% cap · market cap 27.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Office units
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
461
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 78861, TX
13,298
Population
5,163
Households
2.6
Avg Household Size
39
Median Age
17%
College-Educated
82%
High-School Grad
490.7 sq mi
ZIP Area
27
Density / Sq Mi
$64,491
Median Household Income
$39,711
Median Earnings
$1,131
Median Rent
$210,100
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- RCM Tondre Storage — 2002 Ave X, Hondo, TX 78861
- Hondo Attic Self Storage — 810 18th St, Hondo, TX 78861
- Hondo Mini Storage — 104 18th St, Hondo, TX 78861
Frequently Asked Questions
What type of property is this?
Warehouse - Three-building industrial facility with climate-controlled storage, dedicated offices, and a paved service yard.
Where is this warehouse located?
The property is located at Hondo, TX.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 23,050 SF of improvements distributed among three buildings; 14,800 SF warehouse with 10,000+/- SF climate‑controlled space and 17+/- tons; 1,600 SF standalone office building and 6,650 SF open‑front equipment building
