Professional Office with Additional
For Sale
$175,000
1040 SAM HOUSTON, San Benito, TX 78586
Office units with kitchen, front and rear parking, and a second private suite with restroom included for separate use or leasing.
Property Size1,020 SF
Price / SF$171.57
Days on Market252
Property Features for 1040 SAM HOUSTON
General Information
Standard status
Active
Size
1,020 SF
Property subtype
General Commercial
Amenities
3
4 Parking Spaces. Paved Driveway.
City Road.
Building Details
Year Built
1948
Stories
1
Listing Agency:
COLDWELL BANKER IMPACT PROPERTIES
(956) 659-8549
Listed By:
JUSTIN GUZMAN · License #TREC#0833088
(956) 659-8549
Source:
Xome
Added: Dec 20, 2025
Changed: Aug 25
Last Checked: Aug 29 at 6:40AM
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 IMPACT PROPERTIES
Investment Insights
Based on property information with market context.
This property offers office space with an in-unit kitchen and ample room suitable for a professional office setup, spa/saloon concept, or day care use. It also includes a second private suite with a restroom, which can be leased separately or used as an additional office area. A shed in the back is included in the sale; its condition is not known.
Located off Sam Houston near a busy intersection, the building provides parking in both the front and back, supporting convenient on-site access.
The offering is structured as office units with shared building features and two distinct areas, including one suite already equipped with a restroom for ready occupancy or separate leasing.
Located off Sam Houston near a busy intersection, the building provides parking in both the front and back, supporting convenient on-site access.
The offering is structured as office units with shared building features and two distinct areas, including one suite already equipped with a restroom for ready occupancy or separate leasing.
Key Highlights
- Office units built in 1948
- Kitchen included and can support a professional office, spa/saloon, or day care use
- Parking available in front and back of the 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
$9,364
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
5.35%
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%
$187,280
$187.3K
Cap Rate 7%
$133,771
$133.8K
Cap Rate 9%
$104,044
$104.0K
Market Conditions
NOI Build-Up for 1,020 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
$18.4K $18.00/SF
− Vacancy
−$5.9K −$5.76/SF
EGI
$12.5K $12.24/SF
− OpEx
−$3.1K −$3.06/SF
NOI
$9.4K $9.18/SF
Area
Cameron County, TX
Vacancy
32.00%
Lease Rate
$18.00 /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%
$187,280
Cap Rate 7%
$133,771
Cap Rate 9%
$104,044
Alternative Uses
Best Use
Office B
$133.8K
$117.1K – $156.1K
NOI $9,364 @ 7.0% cap · market cap 5.35%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$175.6K
$153.7K – $204.9K
NOI $12,294 @ 7.0% cap · market cap 7.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
152
Businesses Nearby
Explore this area
Business Placement
Demographics for 78586, TX
50,135
Population
16,145
Households
3.1
Avg Household Size
32
Median Age
12%
College-Educated
64%
High-School Grad
152.5 sq mi
ZIP Area
329
Density / Sq Mi
$44,158
Median Household Income
$25,906
Median Earnings
$839
Median Rent
$83,200
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 - Office units with kitchen, front and rear parking, and a second private suite with restroom included for separate use or leasing.
Where is this office units located?
The property is located at 1040 SAM HOUSTON San Benito, TX.
What is the asking price?
The asking price for this property is $175,000.
What are key features of this property?
This property features: Office units built in 1948; Kitchen included and can support a professional office, spa/saloon, or day care use; Parking available in front and back of the building
