High-Visibility Commercial Building For
For Sale
$2,200,000
1001 Interstate 2, Pharr, TX 78577
10,417 SF building suitable for retail, showroom, or flex use.
Property Size10,417 SF
Price / SF$211.19
Days on Market172
Property Features for 1001 Interstate 2
General Information
Standard status
Active
Size
10,417 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$33,205
Building Details
Building Size
10,417 SF
Year Built
2006
Listing Agency:
Coldwell Banker Commercial Rio Grande Valley
(956) 631-1322
Listed By:
Daniel Galvan · License #582851
Source:
Primeluxuryrealestate
Added: Mar 5
Changed: Aug 23
Last Checked: Jul 21 at 2:21AM
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 Coldwell Banker Commercial Rio Grande Valley
Investment Insights
Based on property information with market context.
This approximately 10,417 square foot building is strategically located just off Interstate 2, providing excellent accessibility and strong visibility within a high-traffic corridor. The property is well-suited for retail, showroom, service-oriented, or flex commercial use, benefiting from convenient access for both local and regional customers. Surrounded by established businesses and steady vehicle flow, the site presents strong exposure and accessibility, making it an ideal opportunity for users seeking a well-positioned commercial location.
Key Highlights
- Excellent accessibility due to its location just off Interstate 2.
- High visibility in a high‑traffic corridor.
- Suitable for retail, showroom, service‑oriented, or flex commercial use.
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
$140,652
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
6.39%
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%
$2,813,040
$2.8M
Cap Rate 7%
$2,009,314
$2.0M
Cap Rate 9%
$1,562,800
$1.6M
Market Conditions
NOI Build-Up for 10,417 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
$213.8K $20.52/SF
− Vacancy
−$12.8K −$1.23/SF
EGI
$200.9K $19.29/SF
− OpEx
−$60.3K −$5.79/SF
NOI
$140.7K $13.50/SF
Area
Hidalgo County, TX
Vacancy
6.00%
Lease Rate
$20.52 /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%
$2,813,040
Cap Rate 7%
$2,009,314
Cap Rate 9%
$1,562,800
Alternative Uses
Best Use
Retail
$2.01M
$1.76M – $2.34M
NOI $140,652 @ 7.0% cap · market cap 6.39%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$7.85M
$6.87M – $9.15M
NOI $549,236 @ 7.0% cap · market cap 24.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
912
Businesses Nearby
37k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 58%
Dining 41%
Home Improvements & Furnishings 1%
Burger King
Dining
10,225 visits/mo
0.4 miles
Quick Quack Car Wash
Shops & Services
7,703 visits/mo
0.5 miles
CarMax
Shops & Services
4,992 visits/mo
0.3 miles
IBC Bank
Shops & Services
4,989 visits/mo
0.5 miles
Domino's Pizza
Dining
4,407 visits/mo
0.4 miles
Demographics for 78577, TX
79,937
Population
26,568
Households
3
Avg Household Size
30
Median Age
18%
College-Educated
70%
High-School Grad
26.0 sq mi
ZIP Area
3,075
Density / Sq Mi
$49,768
Median Household Income
$28,186
Median Earnings
$988
Median Rent
$111,500
Median Home Value
Market
Vacancy Rate% for Retail 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?
Retail property - 10,417 SF building suitable for retail, showroom, or flex use.
Where is this retail property located?
The property is located at 1001 Interstate 2 Pharr, TX.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Excellent accessibility due to its location just off Interstate 2.; High visibility in a high‑traffic corridor.; Suitable for retail, showroom, service‑oriented, or flex commercial use.
