Houston East End Boutique
For Sale
Contact for pricing
3902 MCKINNEY ST, Houston, TX
Transformed 3,200 sqft metal warehouse with two boutique units.
Property Size3,200 SF
Lot Size0.15 Acres
Price / SF$257.81
Days on Market274
Property Features for 3902 MCKINNEY ST
General Information
Standard status
Active
Size
3,200 SF
Lot size
0.15 Acres
Property subtype
OFFICE
Listing Agency:
Eastwood Realty
(626) 826-5906
Listed By:
Loren Miner · License #688074
(626) 826-5906
Source:
Moodyscre
Added: Nov 24, 2025
Changed: Aug 8
Last Checked: Aug 24 at 12:55PM
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 Eastwood Realty
Investment Insights
Based on property information with market context.
This 3,200 sqft metal warehouse building in Houston's East End has been transformed into two boutique units. Each unit features a separate entrance, high ceilings, and natural light. The units include bathrooms and exposed A/C. Elegant glass garage doors are fitted with storm shutters. The property is located just off McKinney St. in a rapidly evolving neighborhood. This property offers the opportunity to create a living space.
Key Highlights
- Two boutique units inside a transformed 3,200 sqft metal warehouse.
- Separate entrances for each unit ensuring privacy.
- Contemporary makeover with modern elegance.
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
$37,325
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
4.52%
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%
$746,500
$746.5K
Cap Rate 7%
$533,214
$533.2K
Cap Rate 9%
$414,722
$414.7K
Market Conditions
NOI Build-Up for 3,200 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
$69.1K $21.60/SF
− Vacancy
−$19.4K −$6.05/SF
EGI
$49.8K $15.55/SF
− OpEx
−$12.4K −$3.89/SF
NOI
$37.3K $11.66/SF
Area
Houston, TX
Vacancy
28.00%
Lease Rate
$21.60 /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%
$746,500
Cap Rate 7%
$533,214
Cap Rate 9%
$414,722
Alternative Uses
Best Use
Office B
$533.2K
$466.6K – $622.1K
NOI $37,325 @ 7.0% cap · market cap 4.52%
Second Best
Warehouse
$336.5K
$294.4K – $392.6K
NOI $23,553 @ 7.0% cap · market cap 2.85%
Theoretical Best
Office A
$822.9K
$720.0K – $960.0K
NOI $57,600 @ 7.0% cap · market cap 6.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,102
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Office in Houston, TX
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Warehouse - Transformed 3,200 sqft metal warehouse with two boutique units.
Where is this warehouse located?
The property is located at 3902 MCKINNEY ST Houston, TX.
What is the asking price?
The asking price for this property is $825,000.
What are key features of this property?
This property features: Two boutique units inside a transformed 3,200 sqft metal warehouse.; Separate entrances for each unit ensuring privacy.; Contemporary makeover with modern elegance.
