Three-Suite Office and
For Sale
$319,000
1112 S 23rd St, McAllen, TX 78501
Three-suite commercial property with two leased office suites and one vacant warehouse-style suite.
Property Size2,910 SF
Price / SF$109.62
Days on Market50
Property Features for 1112 S 23rd St
General Information
Standard status
Active
Size
2,910 SF
Additional Details
Highway Access
Yes
Office Units
3
Building Details
Year Built
1973
Tenancy
Multi
Listing Agency:
Element Realty, LLC
Listed By:
Allyza Trevino
Source:
Aregtx
Added: Jul 21
Changed: Aug 27
Last Checked: Sep 8 at 9:53AM
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 Element Realty, LLC
Investment Insights
Based on property information with market context.
This for-sale commercial property includes three separate suites within an office building configuration. Suite A and Suite B are currently leased and generating existing income. Suite C is vacant and presented as a warehouse-style space, offering flexibility for a range of commercial uses such as retail, storage, or a specialty shop.
The building is described as located right off Expressway 83 in McAllen, Texas. Current tenants listed include a phone repair shop and a meat market.
The property’s current layout supports a mixed configuration of leased office space alongside an open warehouse-style suite, making it suitable for an owner seeking immediate occupancy coverage plus a separate space that can be delivered for a new tenant.
The building is described as located right off Expressway 83 in McAllen, Texas. Current tenants listed include a phone repair shop and a meat market.
The property’s current layout supports a mixed configuration of leased office space alongside an open warehouse-style suite, making it suitable for an owner seeking immediate occupancy coverage plus a separate space that can be delivered for a new tenant.
Key Highlights
- Office building built in 1973 with three separate suites
- Suite A and Suite B are currently leased, providing existing cash flow
- Suite C is vacant and offers warehouse‑style space for potential retail, storage, or specialty use
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
$21,460
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
6.73%
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%
$429,200
$429.2K
Cap Rate 7%
$306,571
$306.6K
Cap Rate 9%
$238,444
$238.4K
Market Conditions
NOI Build-Up for 2,910 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
$26.2K $9.00/SF
− Vacancy
−$943 −$0.32/SF
EGI
$25.2K $8.68/SF
− OpEx
−$3.8K −$1.30/SF
NOI
$21.5K $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%
$429,200
Cap Rate 7%
$306,571
Cap Rate 9%
$238,444
Alternative Uses
Best Use
Office B
$556.5K
$487.0K – $649.3K
NOI $38,958 @ 7.0% cap · market cap 12.21%
Second Best
Warehouse
$306.6K
$268.3K – $357.7K
NOI $21,460 @ 7.0% cap · market cap 6.73%
Theoretical Best
Office A
$790.2K
$691.4K – $921.9K
NOI $55,313 @ 7.0% cap · market cap 17.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
899
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
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Frequently Asked Questions
What type of property is this?
Office units - Three-suite commercial property with two leased office suites and one vacant warehouse-style suite.
Where is this office units located?
The property is located at 1112 S 23rd St McAllen, TX.
What is the asking price?
The asking price for this property is $319,000.
What are key features of this property?
This property features: Office building built in 1973 with three separate suites; Suite A and Suite B are currently leased, providing existing cash flow; Suite C is vacant and offers warehouse‑style space for potential retail, storage, or specialty use
