Versatile Mixed-Use Property in
For Sale
$5,875,500
5520 Military Parkway, Dallas, TX 75227
31,450 sqft property suitable for various business operations.
Property Size31,450 SF
Lot Size2.29 Acres
Price / SF$186.82
Days on Market627
Property Features for 5520 Military Parkway
General Information
Standard status
Active
Size
31,450 SF
Lot size
2.29 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$16,063
Building Details
Year Built
1962
Listing Agency:
The Michael Group Real Estate
(469) 363-0209
Listed By:
Charles Horton · License #0546099
(469) 363-0209
Source:
Exitrealty
Added: Nov 22, 2024
Changed: Aug 8
Last Checked: Aug 8 at 5:08AM
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 The Michael Group Real Estate
Investment Insights
Based on property information with market context.
This 31,450 sqft property is situated on 2.2860 acres and includes three buildings. Building 1 has 20,000 sqft, building 2 has 6,250 sqft, and building 3 has 5,200 sqft. All buildings have been remodeled and updated. Currently used as a warehouse, furniture manufacturing space, retail center, office suites, and an event center venue, the property offers versatility and potential for a variety of uses for owner-users or investors. The property is fully climate-controlled, with restrooms in every suite and a city-required fire suppression sprinkler system. It features ample parking within a fully fenced lot. Accessibility is enhanced by four entrances on Military Parkway and one on Parkdale Road, along with five loading dock doors. Located five minutes from I-30, ten minutes from Downtown Dallas, and fifteen minutes from Interstates 35E, 75, and 45, the property offers excellent connectivity. Its adaptable layout offers multiple spaces for leasing or expansion, making it suitable for a wide range of business operations.
Key Highlights
- 31,450 sqft property with 3 remodeled buildings on 2.2860 acres
- Versatile for warehouse, manufacturing, retail, office, or event center
- Excellent accessibility with four entrances on Military Parkway and five loading dock doors
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
$518,925
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
8.83%
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%
$10,378,500
$10.4M
Cap Rate 7%
$7,413,214
$7.4M
Cap Rate 9%
$5,765,833
$5.8M
Market Conditions
NOI Build-Up for 31,450 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
$943.5K $30.00/SF
− Vacancy
−$113.2K −$3.60/SF
EGI
$830.3K $26.40/SF
− OpEx
−$311.4K −$9.90/SF
NOI
$518.9K $16.50/SF
Area
ZIP 75227
Vacancy
12.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
37.50%
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%
$10,378,500
Cap Rate 7%
$7,413,214
Cap Rate 9%
$5,765,833
Alternative Uses
Best Use
Office B
$25.83M
$22.60M – $30.14M
NOI $1,808,101 @ 7.0% cap · market cap 30.77%
Second Best
Mixed Use
$7.41M
$6.49M – $8.65M
NOI $518,925 @ 7.0% cap · market cap 8.83%
Theoretical Best
Office A
$34.42M
$30.12M – $40.16M
NOI $2,409,672 @ 7.0% cap · market cap 41.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
236
Businesses Nearby
Explore this area
Business Placement
Demographics for 75227, TX
59,103
Population
19,605
Households
3
Avg Household Size
32
Median Age
14%
College-Educated
71%
High-School Grad
11.6 sq mi
ZIP Area
5,095
Density / Sq Mi
$59,395
Median Household Income
$37,641
Median Earnings
$1,277
Median Rent
$203,000
Median Home Value
Market
Vacancy Rate% for Office in Dallas, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 31,450 sqft property suitable for various business operations.
Where is this mixed-use property located?
The property is located at 5520 Military Parkway Dallas, TX.
What is the asking price?
The asking price for this property is $5,875,500.
What are key features of this property?
This property features: 31,450 sqft property with 3 remodeled buildings on 2.2860 acres; Versatile for warehouse, manufacturing, retail, office, or event center; Excellent accessibility with four entrances on Military Parkway and five loading dock doors
