Industrial Flex Space with Drive-In
For Sale
$2,667,000
1113 Dayton Rd, Midland, TX 79706
Commercial Sale, Midland, TX
Property Size13,640 SF
Lot Size3.51 Acres
Price / SF$195.53
Days on Market185
Property Features for 1113 Dayton Rd
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
MS2
Standard status
Active
Size
13,640 SF
Lot size
3.51 Acres
Taxes and HOA fees
Tax Description
Acres: 0.859, BLK: 002, LOT: 030 N.220, ADDN: SOUTH 349 ACRES
Tax Annual Amount
989
Legal Description
Acres: 0.859, BLK: 002, LOT: 030 N.220, ADDN: SOUTH 349 ACRES
Amenities
Conference Room
Break Area
Building Details
Year built
1997
Listing Agency:
NRG Realty Group, LLC
(432) 432-7976
Listed By:
Amy Brasher Barnett · License #514276
(432) 352-6714
Added: Mar 27
Changed: Sep 4
Last Checked: Sep 27 at 1:06PM
MLS# 50093869
Copyright © 2026 Permian Basin 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 13,640-square-foot flex property on 3.507 acres combines office, shop, and operational space. Built in 1997, the asset includes a 1,640-square-foot office component with reception, private offices, conference rooms, break areas, restrooms, and a separate executive conference room with a custom bar. The 12,000-square-foot shop measures 120 feet by 100 feet and is arranged in three sections for organized workflow. Three 16-foot drive-in bays support vehicle and equipment access.
The property is located at 1113 Dayton Rd in Midland, approximately 0.25 miles west of TX-349, with access to I-20. Its combination of dedicated office areas and substantial shop capacity provides a unified setting for industrial and administrative functions.
The property is located at 1113 Dayton Rd in Midland, approximately 0.25 miles west of TX-349, with access to I-20. Its combination of dedicated office areas and substantial shop capacity provides a unified setting for industrial and administrative functions.
Key Highlights
- 13,640 SF industrial asset on 3.507 acres
- 12,000 SF shop measuring 120'x100'
- 1,640 SF office with reception, 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
$164,989
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
6.19%
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%
$3,299,780
$3.3M
Cap Rate 7%
$2,356,986
$2.4M
Cap Rate 9%
$1,833,211
$1.8M
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
$261.9K $19.20/SF
− Vacancy
−$41.9K −$3.07/SF
EGI
$220.0K $16.13/SF
− OpEx
−$55.0K −$4.03/SF
NOI
$165.0K $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%
$3,299,780
Cap Rate 7%
$2,356,986
Cap Rate 9%
$1,833,211
Alternative Uses
Best Use
Office B
$2.36M
$2.06M – $2.75M
NOI $164,989 @ 7.0% cap · market cap 6.19%
Second Best
Warehouse
$2.12M
$1.86M – $2.48M
NOI $148,568 @ 7.0% cap · market cap 5.57%
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
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Open Analytics
Current Use
Lease Details
3
Drive-in doors
Yes
Highway 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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Flex space - Office and shop areas provide a functional setup for industrial operations and client-facing work.
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 asset on 3.507 acres; 12,000 SF shop measuring 120'x100'; 1,640 SF office with reception, private offices, conference rooms, break areas, and restrooms
