General Commercial Adaptive Reuse
For Sale
$400,000
903 West Dallas Avenue, McAllen, TX 78501
Commercial building on General Commercial (C-3) zoning, currently improved with a residential structure.
Property Size1,849 SF
Lot Size0.32 Acres
Price / SF$190.48
Days on Market121
Property Features for 903 West Dallas Avenue
General Information
Standard status
Active
Size
1,849 SF
Class
B
Lot size
0.32 Acres
Property subtype
Office - General Office
Zoning
C-3
Building Details
Building Size
1,849 SF
Year Built
1996
Listing Agency:
SVN | Hanna Solutions Commercial Real Estate
(956) 322-4001
Listed By:
Mark Hanna, CCIM
Source:
Commercialcafe
Added: Apr 21
Changed: Aug 16
Last Checked: Aug 18 at 9:12AM
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 SVN | Hanna Solutions Commercial Real Estate
Investment Insights
Based on property information with market context.
903 Dallas Ave is a commercial property improved with a residential structure, offering an adaptive reuse or redevelopment opportunity. The building size is approximately 2,100 SF and sits on about 0.32 acres.
The property is located just east of 10th Street (Business 83) in McAllen, Texas, placing it off a well-established commercial corridor with convenient access to surrounding business activity.
Zoned General Commercial (C-3), the site supports a wide range of uses, including professional office, retail, and service-based businesses. This configuration can support owner-users and investors looking to reposition the existing improvements into professional space or other permitted commercial uses under the C-3 zoning classification.
The property is located just east of 10th Street (Business 83) in McAllen, Texas, placing it off a well-established commercial corridor with convenient access to surrounding business activity.
Zoned General Commercial (C-3), the site supports a wide range of uses, including professional office, retail, and service-based businesses. This configuration can support owner-users and investors looking to reposition the existing improvements into professional space or other permitted commercial uses under the C-3 zoning classification.
Key Highlights
- 2,100 SF commercial building on 0.32 acres, built in 1996
- General Commercial (C‑3) zoning allows a wide range of uses including professional office, retail, and service‑based businesses
- Property is located just off 10th Street (Business 83) at 903 Dallas Ave in McAllen, TX
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
$28,114
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
7.03%
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%
$562,280
$562.3K
Cap Rate 7%
$401,629
$401.6K
Cap Rate 9%
$312,378
$312.4K
Market Conditions
NOI Build-Up for 2,100 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
$44.1K $21.00/SF
− Vacancy
−$6.6K −$3.15/SF
EGI
$37.5K $17.85/SF
− OpEx
−$9.4K −$4.46/SF
NOI
$28.1K $13.39/SF
Area
McAllen, TX
Vacancy
15.00%
Lease Rate
$21.00 /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%
$562,280
Cap Rate 7%
$401,629
Cap Rate 9%
$312,378
Alternative Uses
Best Use
Office B
$401.6K
$351.4K – $468.6K
NOI $28,114 @ 7.0% cap · market cap 7.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$570.2K
$499.0K – $665.3K
NOI $39,917 @ 7.0% cap · market cap 9.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,201
Businesses Nearby
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Commercial building on General Commercial (C-3) zoning, currently improved with a residential structure.
Where is this office building located?
The property is located at 903 West Dallas Avenue McAllen, TX.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: 2,100 SF commercial building on 0.32 acres, built in 1996; General Commercial (C‑3) zoning allows a wide range of uses including professional office, retail, and service‑based businesses; Property is located just off 10th Street (Business 83) at 903 Dallas Ave in McAllen, TX
