Vacant Industrial Warehouse
For Sale
$2,210,000
1300 E Upas Ave, McAllen, TX 78501
Vacant two-building industrial property with climate-controlled space, high clear heights, and multiple dock-high and drive-in doors.
Property Size26,000 SF
Price / SF$85
Days on Market50
Property Features for 1300 E Upas Ave
General Information
Standard status
Active
Size
26,000 SF
Property subtype
Warehouse
Amenities
Vacant Two-Building 26,000-Square-Foot Industrial Property Situated on 2.51 Acres of Land | Move-in Ready for Owner-Use or Lease-Up Opportunity
Featuring a Functional Layout with Potential Showroom/Retail/Office Space, 19,000 SF of Climate-Controlled Space Served by Ten HVAC Units, 16' and 30' Clear Heights, Two Docks, and Four Drive-Ins
Recent 2024 Roof Improvements to Skylight and Seam Repairs | 24% FAR Provides Ample IOS
Strategically Located Less than Two Miles from I-69 and I-2 Interchange | 16 Miles North of Pharr-Reynosa International Bridge
Priced Well Below Replacement Costs at $85/SF | 9.2% Cap Rate on Conservative $7.80/SF Pro Forma Rent
Q2 4.0% Vacancy Rate and $9.90/SF Market Rent Among Comparable 10,000-50,000 SF Industrial Properties in the McAllen Mark
Building Details
Building Size
26,000 SF
Year Built
1995
Listing Agency:
Marcus & Millichap - Dallas
(210) 343-7817
Listed By:
Ernesto Melgar Campos · License #License(s): TX: 788700
(210) 343-7817
Source:
Marcusmillichap
Added: Jun 28
Changed: Aug 14
Last Checked: Aug 16 at 3:04AM
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.
Vacant two-building industrial facility totaling 26,000 square feet on 2.51 acres, offered as a move-in-ready option for owner-use or lease-up. The layout includes office space that may support showroom or retail use, alongside 19,000 square feet of climate-controlled warehouse area served by ten HVAC units. Clear heights reach 16 feet and 30 feet. Loading includes two dock-high doors and four drive-in doors, and the property is equipped with three-phase heavy power with 400 amps at 480Y/277 volts. Recent 2024 roof improvements include skylight and seam repairs.
The property is located less than two miles from the Interstate 69 and Interstate 2 interchange, supporting logistics and transportation needs. It is also 16 miles north of the Pharr-Reynosa International Bridge.
A 24 percent floor area ratio provides outdoor storage flexibility, with room for potential expansion or additional development within the existing site parameters.
The property is located less than two miles from the Interstate 69 and Interstate 2 interchange, supporting logistics and transportation needs. It is also 16 miles north of the Pharr-Reynosa International Bridge.
A 24 percent floor area ratio provides outdoor storage flexibility, with room for potential expansion or additional development within the existing site parameters.
Key Highlights
- Vacant two‑building 26,000 SF industrial asset on 2.51 acres, built in 1995
- 19,000 SF climate‑controlled space with 10 HVAC units
- Clear heights include 16’ and 30’ with office space that could be used as showroom or retail
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
$191,740
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
8.68%
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%
$3,834,800
$3.8M
Cap Rate 7%
$2,739,143
$2.7M
Cap Rate 9%
$2,130,444
$2.1M
Market Conditions
NOI Build-Up for 26,000 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
$234.0K $9.00/SF
− Vacancy
−$8.4K −$0.32/SF
EGI
$225.6K $8.68/SF
− OpEx
−$33.8K −$1.30/SF
NOI
$191.7K $7.37/SF
Area
McAllen, TX
Vacancy
3.60%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
15.00%
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%
$3,834,800
Cap Rate 7%
$2,739,143
Cap Rate 9%
$2,130,444
Alternative Uses
Best Use
Office B
$4.97M
$4.35M – $5.80M
NOI $348,075 @ 7.0% cap · market cap 15.75%
Second Best
Warehouse
$2.74M
$2.40M – $3.20M
NOI $191,740 @ 7.0% cap · market cap 8.68%
Theoretical Best
Office A
$7.06M
$6.18M – $8.24M
NOI $494,208 @ 7.0% cap · market cap 22.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
590
Businesses Nearby
Balanced
Demand for This Use
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
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Similar Off Market Nearby
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- Nearby Self Storage Units - Pharr TX — 700 W Sioux Rd, Pharr, TX 78577
Frequently Asked Questions
What type of property is this?
Warehouse - Vacant two-building industrial property with climate-controlled space, high clear heights, and multiple dock-high and drive-in doors.
Where is this warehouse located?
The property is located at 1300 E Upas Ave McAllen, TX.
What is the asking price?
The asking price for this property is $2,210,000.
What are key features of this property?
This property features: Vacant two‑building 26,000 SF industrial asset on 2.51 acres, built in 1995; 19,000 SF climate‑controlled space with 10 HVAC units; Clear heights include 16’ and 30’ with office space that could be used as showroom or retail
