Unit 1 Professional Office
For Sale
$255,000
1-2300 Michigan Ave, Midland, TX 79701
Flexible commercial workspace positioned near medical services, restaurants, and retail destinations.
Property Size1,300 SF
Price / SF$196.15
Days on Market12
Property Features for 1-2300 Michigan Ave
General Information
Standard status
Active
Size
1,300 SF
Taxes and HOA fees
Annual Taxes
$13,502
Listing Agency:
ThisRealty
(432) 952-9286
Listed By:
Megan Garcia · License #TREC#0739947
(432) 952-9286
Source:
Exprealty
Added: Aug 20
Changed: Aug 29
Last Checked: Aug 30 at 7:41PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of ThisRealty
Investment Insights
Based on property information with market context.
Unit 1 is a professional office suite offered for sale with a flexible interior arrangement. The space is presented as suitable for office use, with potential relevance to medical-oriented operations based on the property information.
The suite is located at 1-2300 Michigan Ave in Midland, Texas. Midland Memorial Hospital, dining options, and retail destinations are identified as nearby, providing a surrounding mix of healthcare, food service, and shopping amenities.
The suite is located at 1-2300 Michigan Ave in Midland, Texas. Midland Memorial Hospital, dining options, and retail destinations are identified as nearby, providing a surrounding mix of healthcare, food service, and shopping amenities.
Key Highlights
- Unit 1 professional office suite offered for sale
- Flexible interior layout
- Located near Midland Memorial Hospital
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
$15,725
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
6.17%
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%
$314,500
$314.5K
Cap Rate 7%
$224,643
$224.6K
Cap Rate 9%
$174,722
$174.7K
Market Conditions
NOI Build-Up for 1,300 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
$25.0K $19.20/SF
− Vacancy
−$4.0K −$3.07/SF
EGI
$21.0K $16.13/SF
− OpEx
−$5.2K −$4.03/SF
NOI
$15.7K $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%
$314,500
Cap Rate 7%
$224,643
Cap Rate 9%
$174,722
Alternative Uses
Best Use
Office B
$224.6K
$196.6K – $262.1K
NOI $15,725 @ 7.0% cap · market cap 6.17%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$306.7K
$268.3K – $357.8K
NOI $21,466 @ 7.0% cap · market cap 8.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,169
Businesses Nearby
Explore this area
Business Placement
Demographics for 79701, TX
29,748
Population
11,393
Households
2.6
Avg Household Size
33
Median Age
19%
College-Educated
73%
High-School Grad
12.1 sq mi
ZIP Area
2,459
Density / Sq Mi
$57,679
Median Household Income
$36,213
Median Earnings
$1,336
Median Rent
$204,000
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 units - Flexible commercial workspace positioned near medical services, restaurants, and retail destinations.
Where is this office units located?
The property is located at 1-2300 Michigan Ave Midland, TX.
What is the asking price?
The asking price for this property is $255,000.
What are key features of this property?
This property features: Unit 1 professional office suite offered for sale; Flexible interior layout; Located near Midland Memorial Hospital
