Multi-Tenant Industrial Asset For
For Sale
$2,700,000
16820 Lee Rd, Humble, TX 77396
24,750 SF multi-tenant industrial asset on 2.05 acres.
Property Size24,750 SF
Lot Size2.05 Acres
Price / SF$109.09
Days on Market135
Property Features for 16820 Lee Rd
General Information
Standard status
Active
Size
24,750 SF
Lot size
2.05 Acres
Property subtype
Warehouse
Building Details
Year Built
1985
Listing Agency:
Marcus & Millichap - Dallas
(713) 452-4384
Listed By:
Grant Roosma · License #License(s): TX: 841845
(713) 452-4384
Source:
Marcusmillichap
Added: Apr 4
Changed: Jul 10
Last Checked: Aug 16 at 3:05AM
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 Marcus & Millichap - Dallas
Investment Insights
Based on property information with market context.
The property is a 24,750-square-foot multi-tenant industrial asset situated on 2.05 acres of land. This industrial property features 15-foot clear height, 300-amp power, and approximately 16 percent of finished office space. The property is currently 100 percent occupied by two tenants, generating $234,000 in current annualized gross income. The tenants are a significant source of revenue for the property, and their occupancy ensures a stable income stream. The property's occupancy rate and revenue generation make it an attractive investment opportunity. The property's current lease terms present a value-add opportunity for investors, as there is potential to convert to triple-net lease terms. This conversion could increase the property's revenue and attractiveness to potential buyers. The location of the property is also a major advantage, with direct access to the Hardy Toll Road and proximity to George Bush Intercontinental Airport. This prime location provides easy access to major transportation routes and infrastructure. The North Hardy Toll Road submarket, where the property is located, has a below-national-average vacancy rate of 6.3 percent in the first quarter of 2026. The limited supply of multi-tenant industrial properties in the area also contributes to the property's value.
Key Highlights
- 100% occupancy: enjoy immediate and stable income.
- $234,000 annualized gross income: a substantial return on investment.
- Prime location: direct access to Hardy Toll Road and close to George Bush Intercontinental Airport.
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
$212,224
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
7.86%
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%
$4,244,480
$4.2M
Cap Rate 7%
$3,031,771
$3.0M
Cap Rate 9%
$2,358,044
$2.4M
Market Conditions
NOI Build-Up for 24,750 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
$326.7K $13.20/SF
− Vacancy
−$23.5K −$0.95/SF
EGI
$303.2K $12.25/SF
− OpEx
−$91.0K −$3.67/SF
NOI
$212.2K $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%
$4,244,480
Cap Rate 7%
$3,031,771
Cap Rate 9%
$2,358,044
Alternative Uses
Best Use
Office B
$4.63M
$4.05M – $5.40M
NOI $324,181 @ 7.0% cap · market cap 12.01%
Second Best
Warehouse
$3.68M
$3.22M – $4.30M
NOI $257,701 @ 7.0% cap · market cap 9.54%
Theoretical Best
Office A
$6.76M
$5.91M – $7.88M
NOI $473,062 @ 7.0% cap · market cap 17.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
40
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 77396, TX
61,058
Population
20,532
Households
3
Avg Household Size
32
Median Age
25%
College-Educated
83%
High-School Grad
24.9 sq mi
ZIP Area
2,452
Density / Sq Mi
$76,506
Median Household Income
$45,385
Median Earnings
$1,459
Median Rent
$234,100
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?
Warehouse - 24,750 SF multi-tenant industrial asset on 2.05 acres.
Where is this warehouse located?
The property is located at 16820 Lee Rd Humble, TX.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: 100% occupancy: enjoy immediate and stable income.; $234,000 annualized gross income: a substantial return on investment.; Prime location: direct access to Hardy Toll Road and close to George Bush Intercontinental Airport.
