Multi-Tenant Retail
For Sale
$3,370,000
5407 Louetta Rd, Spring, TX 77379
Retail strip center with 58% occupancy and an included 1-acre pad site.
Property Size17,500 SF
Price / SF$192.57
Days on Market58
Property Features for 5407 Louetta Rd
General Information
Standard status
Active
Size
17,500 SF
Property subtype
Shopping Strip
Occupancy
58%
Additional Details
Cap Rate
10.4%
Traffic Count
41,000 vehicles/day
Amenities
Value-Add Retail Center | 17,500 SF
Lease-Up Opportunity | 58% Occupancy
1 Acre Pad Site | $350K Stabilized NOI | 10.4% Pro Forma Cap
3 Mile Radius | Population - 110,227 | AHHI - $122,032
Building Details
Building Size
17,500 SF
Year Built
2005
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Houston
(713) 452-4379
Listed By:
Christian Scott · License #License(s): TX: 842990
(713) 452-4379
Source:
Marcusmillichap
Added: Jun 16
Changed: Aug 8
Last Checked: Aug 11 at 4:43AM
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 - Houston
Investment Insights
Based on property information with market context.
The subject property is a 17,500-square-foot, multi-tenant retail center in Spring, Texas. The center is currently 58% occupied, offering a lease-up opportunity, and the offering includes a 1-acre pad site with additional development potential.
The property is positioned along a corridor carrying approximately 41,000 vehicles per day in the northwest Houston submarket. The trade area is supported by area income and employment fundamentals, with daytime population within five miles totaling 260,399 and 152,342 area employees across healthcare, engineering, and professional services. Houston Northwest Medical Center, the submarket’s largest single employer at 1,600 employees, is located within the trade area.
The provided pro forma projects stabilized NOI of $350,000 at a 10.4% cap rate.
The property is positioned along a corridor carrying approximately 41,000 vehicles per day in the northwest Houston submarket. The trade area is supported by area income and employment fundamentals, with daytime population within five miles totaling 260,399 and 152,342 area employees across healthcare, engineering, and professional services. Houston Northwest Medical Center, the submarket’s largest single employer at 1,600 employees, is located within the trade area.
The provided pro forma projects stabilized NOI of $350,000 at a 10.4% cap rate.
Key Highlights
- 17,500 SF multi‑tenant retail center built in 2005 in Spring, TX
- Currently 58% occupied, offering additional leasing upside based on the stated 58% occupancy level
- Includes a 1‑acre pad site with additional development potential
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
$237,293
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
7.04%
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%
$4,745,860
$4.7M
Cap Rate 7%
$3,389,900
$3.4M
Cap Rate 9%
$2,636,589
$2.6M
Market Conditions
NOI Build-Up for 17,500 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
$359.1K $20.52/SF
− Vacancy
−$20.1K −$1.15/SF
EGI
$339.0K $19.37/SF
− OpEx
−$101.7K −$5.81/SF
NOI
$237.3K $13.56/SF
Area
Montgomery County, 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%
$4,745,860
Cap Rate 7%
$3,389,900
Cap Rate 9%
$2,636,589
Alternative Uses
Best Use
Retail
$3.39M
$2.97M – $3.95M
NOI $237,293 @ 7.0% cap · market cap 7.04%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.42M
$3.87M – $5.15M
NOI $309,254 @ 7.0% cap · market cap 9.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
41,000 VPD
Traffic count
58%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
858
Businesses Nearby
282k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 58%
Shops & Services 22%
Home Improvements & Furnishings 13%
Groceries 5%
Chick-fil-A
Dining
47,133 visits/mo
0.4 miles
Whataburger
Dining
35,202 visits/mo
0.4 miles
Lowe's
Home Improvements & Furnishings
34,222 visits/mo
0.4 miles
Murphy USA
Shops & Services
17,348 visits/mo
0.0 miles
Mobil
Shops & Services
15,492 visits/mo
0.1 miles
Demographics for 77379, TX
84,704
Population
30,004
Households
2.8
Avg Household Size
38
Median Age
49%
College-Educated
95%
High-School Grad
25.8 sq mi
ZIP Area
3,283
Density / Sq Mi
$110,712
Median Household Income
$58,474
Median Earnings
$1,618
Median Rent
$335,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Retail strip center with 58% occupancy and an included 1-acre pad site.
Where is this strip mall located?
The property is located at 5407 Louetta Rd Spring, TX.
What is the asking price?
The asking price for this property is $3,370,000.
What are key features of this property?
This property features: 17,500 SF multi‑tenant retail center built in 2005 in Spring, TX; Currently 58% occupied, offering additional leasing upside based on the stated 58% occupancy level; Includes a 1‑acre pad site with additional development potential
