Building Details

Building Size 6,136 SF

Year Built 1979

Listing Agency: Coldwell Banker La Mansion b***@gmail.com Show Phone

Listed By: Javier Cantu Show Phone

Source: Cbcworldwide

Added: Mar 5 Changed: Aug 8 Last Checked: Apr 9 at 9:00PM

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Investment Insights

Based on property information with market context.

This investment property is located in Downtown Mission and includes two buildings with established tenants. The first building is approximately 2,555 square feet and is currently leased as a medical facility. The second building offers 3,581 square feet and is occupied by a flower retail shop that has operated at this location since 2019 and intends to remain long-term. The property is 0.24 acres and has a strong rental history.

Key Highlights

• Income‑producing property with established tenants
• Located in the heart of Downtown Mission
• Building 2 has a long‑term tenant (flower retail shop since 2019)

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

$59,900

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

8.62%

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%

$1,198,000 $1.2M

Cap Rate 7%

$855,714 $855.7K

Cap Rate 9%

$665,556 $665.6K

Market Conditions

NOI Build-Up for 3,581 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

$110.0K $30.72/SF

− Vacancy

−$30.1K −$8.42/SF

EGI

$79.9K $22.30/SF

− OpEx

−$20.0K −$5.58/SF

NOI

$59.9K $16.73/SF

Area

Hidalgo County, TX

Vacancy

27.40%

Lease Rate

$30.72 /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%

$1,198,000

Cap Rate 7%

$855,714

Cap Rate 9%

$665,556

Alternative Uses

Best Use

Office B

$855.7K

$748.8K – $998.3K (±1% cap)

NOI $59,900 @ 7.0% cap · market cap 8.62%

Second Best

Healthcare Medical

$756.9K

$662.3K – $883.1K (±1% cap)

NOI $52,986 @ 7.0% cap · market cap 7.62%

Theoretical Best

Hotel Hospitality

$2.70M

$2.36M – $3.15M (±1% cap)

NOI $188,808 @ 7.0% cap · market cap 27.17%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Suggested Use

Top Pick Real Estate Agency Law Firm Garden Center (Bike/Boat/Book/etc) Store Carpet & Flooring Store Electrical Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

359

Businesses Nearby

Explore this area Business Placement

Demographics for 78572, TX

78,280

Population

32,696

Households

2.4

Avg Household Size

36

Median Age

25%

College-Educated

75%

High-School Grad

53.7 sq mi

ZIP Area

1,458

Density / Sq Mi

$54,029

Median Household Income

$30,004

Median Earnings

$900

Median Rent

$121,900

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

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What type of property is this? Where is this retail space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Retail space - Income-producing property with established tenants in Downtown Mission.

Where is this retail space located?

The property is located at 1122 N Conway Ave Palmhurst, TX.

What is the asking price?

The asking price for this property is $695,000.

What are key features of this property?

This property features: Income‑producing property with established tenants; Located in the heart of Downtown Mission; Building 2 has a long‑term tenant (flower retail shop since 2019)