Pharr Commercial Property For
For Sale
$3,500,000
1503 W Polk Ave., Pharr, TX 78577
36,618 sq. ft. building in prime Pharr location.
Property Size36,186 SF
Price / SF$96.72
Days on Market271
Property Features for 1503 W Polk Ave.
General Information
Standard status
Active
Size
36,186 SF
Class
B
Property subtype
Office
Building Details
Building Size
36,186 SF
Year Built
1984
Listing Agency:
SVN | Hanna Solutions CRE
(956) 778-3449
Listed By:
Eric Carrizales, CCIM, CPM
(956) 778-3449
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 8
Last Checked: Aug 18 at 4:19AM
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 SVN | Hanna Solutions CRE
Investment Insights
Based on property information with market context.
This commercial property in Pharr, TX, features a 36,618 sq. ft. building. The building includes 29,706 sq. ft. of office space and 6,480 sq. ft. of warehouse space. The property is situated on an estimated 3.5-acre lot. Parking includes 57 spaces in the front (51 standard and 6 ADA) and 75 spaces in the rear (73 standard and 2 ADA), totaling 132 spaces with 8 ADA-compliant spaces. The property is shadow-anchored by Pharr Town Center, Cinemark, Academy, IKEA, Main Event, Burlington, Chipotle, Stefano's, and Parry's. It is suitable for corporate headquarters, government agencies, medical and healthcare providers, educational and training institutions, and call centers and back-office operations.
Key Highlights
- Prime location shadow‑anchored by Pharr Town Center, a major regional shopping destination.
- Large building size: 36,186 SF with a combination of office (29,706 SF) and warehouse (6,480 SF) space.
- Ample parking: 132 total spaces, including 8 ADA‑compliant spaces.
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
$231,221
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
6.61%
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%
$4,624,420
$4.6M
Cap Rate 7%
$3,303,157
$3.3M
Cap Rate 9%
$2,569,122
$2.6M
Market Conditions
NOI Build-Up for 36,186 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
$290.9K $8.04/SF
− Vacancy
−$18.9K −$0.52/SF
EGI
$272.0K $7.52/SF
− OpEx
−$40.8K −$1.13/SF
NOI
$231.2K $6.39/SF
Area
Hidalgo County, TX
Vacancy
6.50%
Lease Rate
$8.04 /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%
$4,624,420
Cap Rate 7%
$3,303,157
Cap Rate 9%
$2,569,122
Alternative Uses
Best Use
Office B
$8.65M
$7.57M – $10.09M
NOI $605,285 @ 7.0% cap · market cap 17.29%
Second Best
Warehouse
$3.30M
$2.89M – $3.85M
NOI $231,221 @ 7.0% cap · market cap 6.61%
Theoretical Best
Hotel Hospitality
$27.26M
$23.85M – $31.80M
NOI $1,907,907 @ 7.0% cap · market cap 54.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
876
Businesses Nearby
Explore this area
Business Placement
Demographics for 78577, TX
79,937
Population
26,568
Households
3
Avg Household Size
30
Median Age
18%
College-Educated
70%
High-School Grad
26.0 sq mi
ZIP Area
3,075
Density / Sq Mi
$49,768
Median Household Income
$28,186
Median Earnings
$988
Median Rent
$111,500
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 building - 36,618 sq. ft. building in prime Pharr location.
Where is this office building located?
The property is located at 1503 W Polk Ave. Pharr, TX.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: Prime location shadow‑anchored by Pharr Town Center, a major regional shopping destination.; Large building size: 36,186 SF with a combination of office (29,706 SF) and warehouse (6,480 SF) space.; Ample parking: 132 total spaces, including 8 ADA‑compliant spaces.
