Multi-Frontage Retail Strip
For Sale
Contact for pricing
1225-1229 Waugh Dr, Houston, TX 77019
Strip center for sale with frontage on three streets and an approximately 15,011 SF building sold as-is.
Property Size15,011 SF
Lot Size0.68 Acres
Price / SF$466.32
Days on Market172
Property Features for 1225-1229 Waugh Dr
General Information
Standard status
Active
Size
15,011 SF
Lot size
0.68 Acres
Property subtype
RETAIL
Listing Agency:
Joe Realty, LLC
Listed By:
David Joe · License #0330268
(832) 567-5171
Source:
Moodyscre
Added: Mar 27
Changed: Sep 12
Last Checked: Sep 13 at 11:25AM
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 Joe Realty, LLC
Investment Insights
Based on property information with market context.
This retail strip center is offered for sale as-is and includes multiple addresses (1225–1229 Waugh Dr). The property includes approximately 15,011 SF of building area as reflected by HCAD. The lot size is approximately 29,541 SF per survey.
The property has frontage on three streets: Waugh, W Clay, and Peveto. It is described as being close to Montrose, River Oaks, Downtown, the Medical Center, the Galleria, and Memorial Park, with convenient access to Allen Parkway, Memorial Drive, I-45, I-10, and the 610 Loop.
All information is based on the provided public remarks and seller-provided details.
The property has frontage on three streets: Waugh, W Clay, and Peveto. It is described as being close to Montrose, River Oaks, Downtown, the Medical Center, the Galleria, and Memorial Park, with convenient access to Allen Parkway, Memorial Drive, I-45, I-10, and the 610 Loop.
All information is based on the provided public remarks and seller-provided details.
Key Highlights
- Frontage on 3 streets: Waugh, W Clay, and Peveto
- Approximately 29,541 SF lot size per survey
- Approximately 15,011 SF building size per HCAD
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
$203,543
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
2.91%
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%
$4,070,860
$4.1M
Cap Rate 7%
$2,907,757
$2.9M
Cap Rate 9%
$2,261,589
$2.3M
Market Conditions
NOI Build-Up for 15,011 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
$308.0K $20.52/SF
− Vacancy
−$17.2K −$1.15/SF
EGI
$290.8K $19.37/SF
− OpEx
−$87.2K −$5.81/SF
NOI
$203.5K $13.56/SF
Area
Houston, TX
Vacancy
5.60%
Lease Rate
$20.52 /SF/Yr
Expense Ratio
30.00%
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%
$4,070,860
Cap Rate 7%
$2,907,757
Cap Rate 9%
$2,261,589
Alternative Uses
Best Use
Retail
$2.91M
$2.54M – $3.39M
NOI $203,543 @ 7.0% cap · market cap 2.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.86M
$3.38M – $4.50M
NOI $270,198 @ 7.0% cap · market cap 3.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,362
Businesses Nearby
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Business Placement
Demographics for 77019, TX
24,136
Population
14,387
Households
1.7
Avg Household Size
37
Median Age
76%
College-Educated
98%
High-School Grad
3.7 sq mi
ZIP Area
6,523
Density / Sq Mi
$108,353
Median Household Income
$75,871
Median Earnings
$1,886
Median Rent
$724,900
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Houston, TX
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Frequently Asked Questions
What type of property is this?
Strip mall - Strip center for sale with frontage on three streets and an approximately 15,011 SF building sold as-is.
Where is this strip mall located?
The property is located at 1225-1229 Waugh Dr Houston, TX.
What is the asking price?
The asking price for this property is $7,000,000.
What are key features of this property?
This property features: Frontage on 3 streets: Waugh, W Clay, and Peveto; Approximately 29,541 SF lot size per survey; Approximately 15,011 SF building size per HCAD
