Flex Space Business
For Sale
$4,449,900
10034 10046 E US Hwy 290, Fredericksburg, TX 78624
Commercial Sale, Fredericksburg, TX
Property Size20,000 SF
Lot Size5.00 Acres
Price / SF$222.50
Days on Market208
Property Features for 10034 10046 E US Hwy 290
General Information
Property type
Commercial Sale
Property subtype
Other
Elementary school district
Fredericksburg
Middle school district
Fredericksburg
High school district
Fredericksburg
Standard status
Active
Lot size
5.00 Acres
Taxes and HOA fees
Tax Annual Amount
20922
Listing Agency:
Reata Ranch Realty, LLC
(830) 992-3045
Listed By:
Sarah Wanek · License #TX704968
(830) 998-5884
Added: Jan 27
Changed: Aug 19
Last Checked: Aug 23 at 1:06PM
MLS# 100568
Copyright © 2026 Central Hill Country 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.
This flex space business park offers approximately 5 acres described as unrestricted, with existing building space totaling about 20,000 square feet across multiple structures. Tenants are currently in place, supporting an income-producing setup for an owner looking for stabilized operations.
The site has direct frontage and access from US 290, positioned within the Texas Hill Country wine corridor in Gillespie County. A well and septic systems are already in place, helping reduce development requirements for future phases or continued use of the property.
The existing improvements are described as suitable for a range of commercial uses, including light industrial, warehouse, flex space, artisan production, service-based businesses, and retail support tied to the surrounding wine and tourism environment. The unrestricted nature of the zoning is presented as flexibility for maintaining the current income model, repositioning the asset, or pursuing redevelopment aligned with demand in the area.
The site has direct frontage and access from US 290, positioned within the Texas Hill Country wine corridor in Gillespie County. A well and septic systems are already in place, helping reduce development requirements for future phases or continued use of the property.
The existing improvements are described as suitable for a range of commercial uses, including light industrial, warehouse, flex space, artisan production, service-based businesses, and retail support tied to the surrounding wine and tourism environment. The unrestricted nature of the zoning is presented as flexibility for maintaining the current income model, repositioning the asset, or pursuing redevelopment aligned with demand in the area.
Key Highlights
- Approximately 5 unrestricted acres
- About 20,000 SF of existing building space across multiple structures
- Tenants currently in place for immediate stabilized income
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
$164,155
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
3.69%
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%
$3,283,100
$3.3M
Cap Rate 7%
$2,345,071
$2.3M
Cap Rate 9%
$1,823,944
$1.8M
Market Conditions
NOI Build-Up for 20,000 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
$294.0K $14.70/SF
− Vacancy
−$41.5K −$2.07/SF
EGI
$252.5K $12.63/SF
− OpEx
−$88.4K −$4.42/SF
NOI
$164.2K $8.21/SF
Area
Gillespie County, TX
Vacancy
14.10%
Lease Rate
$14.70 /SF/Yr
Expense Ratio
35.00%
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%
$3,283,100
Cap Rate 7%
$2,345,071
Cap Rate 9%
$1,823,944
Alternative Uses
Best Use
Flex RnD
$2.35M
$2.05M – $2.74M
NOI $164,155 @ 7.0% cap · market cap 3.69%
Second Best
Warehouse
$1.79M
$1.56M – $2.08M
NOI $125,062 @ 7.0% cap · market cap 2.81%
Theoretical Best
Hotel Hospitality
$15.15M
$13.25M – $17.67M
NOI $1,060,200 @ 7.0% cap · market cap 23.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
32
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78624, TX
23,080
Population
12,421
Households
1.9
Avg Household Size
52
Median Age
37%
College-Educated
89%
High-School Grad
742.3 sq mi
ZIP Area
31
Density / Sq Mi
$67,987
Median Household Income
$37,047
Median Earnings
$1,347
Median Rent
$439,600
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.
Frequently Asked Questions
What type of property is this?
Flex space - Multi-structure business park with existing tenants, positioned for direct access and frontage along US 290.
Where is this flex space located?
The property is located at 10034 10046 E US Hwy 290 Fredericksburg, TX.
What is the asking price?
The asking price for this property is $4,449,900.
What are key features of this property?
This property features: Approximately 5 unrestricted acres; About 20,000 SF of existing building space across multiple structures; Tenants currently in place for immediate stabilized income
