Office/Warehouse Investment Near Ellington
For Sale
Contact for pricing
12440 Old Galveston Rd Building 2, Webster, TX 77598
5,200 SF office/warehouse across from Ellington Field.
Property Size5,200 SF
Lot Size0.90 Acres
Price / SF$211.54
Days on Market262
Property Features for 12440 Old Galveston Rd Building 2
General Information
Standard status
Active
Size
5,200 SF
Lot size
0.90 Acres
Property subtype
Industrial
Building Details
Year Built
2015
Buildings
1
Stories
2
Listing Agency:
Barr Associates Real Estate
(281) 333-1700
Listed By:
Randy Barr · License #0266894
Source:
Crexi
Added: Dec 3, 2025
Changed: Aug 21
Last Checked: Aug 21 at 4:10AM
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 Barr Associates Real Estate
Investment Insights
Based on property information with market context.
This 5,200 SF office/warehouse property is located directly opposite Ellington Field. It features 1,750 SF of professional office space designed for administrative or client-facing operations. The expansive warehouse area includes two 16’ overhead doors for logistics, storage, or production. Additional features include a 288 SF canopy roof, upstairs storage, and a fully fenced yard. The property sits on nearly 0.9 acres, offering ample parking, outdoor storage, and room for future expansion. This property is suited for businesses requiring both office and warehouse capabilities. Its location ensures long-term visibility and accessibility, making it a smart investment for companies seeking operational efficiency and investors looking for appreciating assets in a high-demand corridor.
Key Highlights
- Strategic location directly across from Ellington Field, providing high visibility and accessibility
- 5,200 SF office/warehouse property offering a blend of office and warehouse capabilities
- Expansive warehouse area with two 16’ overhead doors for efficient logistics and operations
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
$44,589
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
4.05%
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%
$891,780
$891.8K
Cap Rate 7%
$636,986
$637.0K
Cap Rate 9%
$495,433
$495.4K
Market Conditions
NOI Build-Up for 5,200 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
$68.6K $13.20/SF
− Vacancy
−$4.9K −$0.95/SF
EGI
$63.7K $12.25/SF
− OpEx
−$19.1K −$3.67/SF
NOI
$44.6K $8.57/SF
Area
Harris County, TX
Vacancy
7.20%
Lease Rate
$13.20 /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%
$891,780
Cap Rate 7%
$636,986
Cap Rate 9%
$495,433
Alternative Uses
Best Use
Industrial
$637.0K
$557.4K – $743.2K
NOI $44,589 @ 7.0% cap · market cap 4.05%
Second Best
Flex RnD
$352.9K
$308.8K – $411.7K
NOI $24,703 @ 7.0% cap · market cap 2.25%
Theoretical Best
Office A
$1.42M
$1.24M – $1.66M
NOI $99,391 @ 7.0% cap · market cap 9.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
375
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77598, TX
25,620
Population
13,337
Households
1.9
Avg Household Size
32
Median Age
30%
College-Educated
91%
High-School Grad
12.2 sq mi
ZIP Area
2,100
Density / Sq Mi
$59,758
Median Household Income
$45,190
Median Earnings
$1,279
Median Rent
$228,700
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - 5,200 SF office/warehouse across from Ellington Field.
Where is this flex space located?
The property is located at 12440 Old Galveston Rd Building 2 Webster, TX.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Strategic location directly across from Ellington Field, providing high visibility and accessibility; 5,200 SF office/warehouse property offering a blend of office and warehouse capabilities; Expansive warehouse area with two 16’ overhead doors for efficient logistics and operations
