Industrial Property with Office
For Sale
$2,667,000
1113 Dayton Rd, Midland, TX 79706
Warehouse shop includes drive-in bays and a separated office for client-facing and operational needs.
Property Size13,640 SF
Lot Size3.51 Acres
Price / SF$195.53
Days on Market153
Property Features for 1113 Dayton Rd
General Information
Standard status
Active
Size
13,640 SF
Lot size
3.51 Acres
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Drive-In Doors
3
Taxes and HOA fees
Annual Taxes
$988
Listing Agency:
NRG Realty Group, LLC
(432) 352-6714
Listed By:
Amy Brasher Barnett · License #514276
(432) 352-6714
Source:
Exprealty
Added: Mar 27
Changed: Aug 20
Last Checked: Aug 25 at 9:14AM
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 NRG Realty Group, LLC
Investment Insights
Based on property information with market context.
This for-sale industrial property includes a total of 13,640 SF of improvements on 3.507 acres, with a 12,000 SF shop plus a 1,640 SF office. The office is split into two sections and includes a reception area, multiple private offices, conference rooms, break areas, and restrooms. The rear office features an executive conference room with a custom bar, which can support client-facing meetings and internal executive functions.
The shop portion is configured as a 120’ by 100’ space divided into three sections to support efficient workflow. It includes three 16’ drive-in bays for loading and receiving. The property is located 0.25 miles west of TX-349, with quick access to I-20.
The layout is practical for tenants or owner-operators who need both warehouse production and dedicated office space. With multiple private offices, conference rooms, and on-site break and restroom facilities, the building can accommodate teams that require day-to-day administrative support alongside shop operations. The drive-in bays and segmented shop configuration are also well-suited for handling multiple workstreams within one facility.
The shop portion is configured as a 120’ by 100’ space divided into three sections to support efficient workflow. It includes three 16’ drive-in bays for loading and receiving. The property is located 0.25 miles west of TX-349, with quick access to I-20.
The layout is practical for tenants or owner-operators who need both warehouse production and dedicated office space. With multiple private offices, conference rooms, and on-site break and restroom facilities, the building can accommodate teams that require day-to-day administrative support alongside shop operations. The drive-in bays and segmented shop configuration are also well-suited for handling multiple workstreams within one facility.
Key Highlights
- 13,640 SF industrial property on 3.507 acres with quick access to I‑20, about 0.25 miles west of TX‑349
- 12,000 SF shop (120' x 100') with three 16' drive‑in bays and three internal shop sections for workflow
- 1,640 SF office split into two sections with reception, multiple private offices, conference rooms, break areas, and restrooms
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
$148,568
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
5.57%
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%
$2,971,360
$3.0M
Cap Rate 7%
$2,122,400
$2.1M
Cap Rate 9%
$1,650,756
$1.7M
Market Conditions
NOI Build-Up for 13,640 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
$185.0K $13.56/SF
− Vacancy
−$10.2K −$0.75/SF
EGI
$174.8K $12.81/SF
− OpEx
−$26.2K −$1.92/SF
NOI
$148.6K $10.89/SF
Area
Midland, TX
Vacancy
5.50%
Lease Rate
$13.56 /SF/Yr
Expense Ratio
15.00%
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%
$2,971,360
Cap Rate 7%
$2,122,400
Cap Rate 9%
$1,650,756
Alternative Uses
Best Use
Warehouse
$2.12M
$1.86M – $2.48M
NOI $148,568 @ 7.0% cap · market cap 5.57%
Second Best
Industrial
$1.75M
$1.53M – $2.04M
NOI $122,350 @ 7.0% cap · market cap 4.59%
Theoretical Best
Office A
$3.22M
$2.82M – $3.75M
NOI $225,224 @ 7.0% cap · market cap 8.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Drive-in doors
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
323
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 79706, TX
31,805
Population
12,368
Households
2.6
Avg Household Size
32
Median Age
23%
College-Educated
87%
High-School Grad
689.5 sq mi
ZIP Area
46
Density / Sq Mi
$110,988
Median Household Income
$58,023
Median Earnings
$897
Median Rent
$280,500
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Warehouse shop includes drive-in bays and a separated office for client-facing and operational needs.
Where is this flex space located?
The property is located at 1113 Dayton Rd Midland, TX.
What is the asking price?
The asking price for this property is $2,667,000.
What are key features of this property?
This property features: 13,640 SF industrial property on 3.507 acres with quick access to I‑20, about 0.25 miles west of TX‑349; 12,000 SF shop (120' x 100') with three 16' drive‑in bays and three internal shop sections for workflow; 1,640 SF office split into two sections with reception, multiple private offices, conference rooms, break areas, and restrooms
