Remodeled Flex
For Sale
$3,950,000
1501 N Fairgrounds Rd, Midland, TX 79706
COMMERCIAL - Midland, TX
Property Size20,894 SF
Lot Size3.83 Acres
Price / SF$189.05
Days on Market101
Property Features for 1501 N Fairgrounds Rd
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
East Midland
Standard status
Active
Size
20,894 SF
Lot size
3.83 Acres
Taxes and HOA fees
Tax Description
2.635, BLK: 089, LOT: 001, ADDN: EAST MIDLAND SEC 2
Tax Annual Amount
19800
Legal Description
2.635, BLK: 089, LOT: 001, ADDN: EAST MIDLAND SEC 2
Building Details
Year built
1978
Listing Agency:
NRG Realty Group, LLC
(432) 432-7976
Listed By:
Amy Brasher Barnett · License #514276
(432) 352-6714
Added: May 18
Changed: Aug 4
Last Checked: Aug 26 at 7:06AM
MLS# 50095266
Copyright © 2026 Permian Basin Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This flex-space property at 1501 N Fairgrounds Rd combines office, shop, storage, and tote improvements across 20,894 square feet on 3.83 acres. The main office and shop, along with the tote facility, were remodeled in 2015. The 13,754-square-foot office area includes an executive suite, 22 private offices, a reception area, two conference rooms, and a break room.
A 1,440-square-foot shop and storage area adds a parts office, crew preparation room, men’s and women’s locker rooms, and open storage. The 5,700-square-foot tote facility provides additional operational space. The property offers access to Business 20, I-20, and Loop 250 in Midland, Texas, and the layout can be divided into smaller sections.
A 1,440-square-foot shop and storage area adds a parts office, crew preparation room, men’s and women’s locker rooms, and open storage. The 5,700-square-foot tote facility provides additional operational space. The property offers access to Business 20, I-20, and Loop 250 in Midland, Texas, and the layout can be divided into smaller sections.
Key Highlights
- 20,894 SF flex property on 3.83 acres
- 13,754 SF office area with 22 private offices, executive suite, reception, conference rooms, and break room
- 1,440 SF shop and storage area with parts office, crew prep room, locker rooms, and open storage
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
$252,734
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
6.40%
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%
$5,054,680
$5.1M
Cap Rate 7%
$3,610,486
$3.6M
Cap Rate 9%
$2,808,156
$2.8M
Market Conditions
NOI Build-Up for 20,894 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
$401.2K $19.20/SF
− Vacancy
−$64.2K −$3.07/SF
EGI
$337.0K $16.13/SF
− OpEx
−$84.2K −$4.03/SF
NOI
$252.7K $12.10/SF
Area
Midland, TX
Vacancy
16.00%
Lease Rate
$19.20 /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%
$5,054,680
Cap Rate 7%
$3,610,486
Cap Rate 9%
$2,808,156
Alternative Uses
Best Use
Office B
$3.61M
$3.16M – $4.21M
NOI $252,734 @ 7.0% cap · market cap 6.40%
Second Best
Warehouse
$3.25M
$2.84M – $3.79M
NOI $227,579 @ 7.0% cap · market cap 5.76%
Theoretical Best
Office A
$4.93M
$4.31M – $5.75M
NOI $345,002 @ 7.0% cap · market cap 8.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
101
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79706, TX
31,805
Population
12,368
Households
2.6
Avg Household Size
32
Median Age
23%
College-Educated
87%
High-School Grad
689.5 sq mi
ZIP Area
46
Density / Sq Mi
$110,988
Median Household Income
$58,023
Median Earnings
$897
Median Rent
$280,500
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?
Flex space - The property combines office, shop, storage, and tote facilities within one commercial operation.
Where is this flex space located?
The property is located at 1501 N Fairgrounds Rd Midland, TX.
What is the asking price?
The asking price for this property is $3,950,000.
What are key features of this property?
This property features: 20,894 SF flex property on 3.83 acres; 13,754 SF office area with 22 private offices, executive suite, reception, conference rooms, and break room; 1,440 SF shop and storage area with parts office, crew prep room, locker rooms, and open storage
