Downtown Storefront
For Sale
$440,000
806 S 16 1/2 Street, McAllen, TX 78501
Commercial Sale, McAllen, TX
Property Size2,790 SF
Lot Size0.22 Acres
Price / SF$157.71
Days on Market102
Property Features for 806 S 16 1/2 Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CO
Parking
12
Parking features
Off Street
Security features
Security Lighting
Exterior features
Storage
Appliances
Electric Water Heater
Subdivision
South Mcallen
Lot features
Downtown
Directions
Downtown Mcallen, Corner of Houston and 16 1/2 St
Standard status
Active
APN
S435000004002100
Size
2,790 SF
Lot size
0.22 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
6795
Utilities
Heating system
Electric (Heating), Central
Cooling system
Central Air, Electric
Building Details
Year built
2009
Floors in Building
1
Building materials
Stucco
Roof type
Flat
Additional Structures
Storage
Listing Agency:
Keller Williams Realty RGV
(956) 928-1155
Listed By:
Maggie Harris · License #TREC#0530155
(956) 821-9990
Added: Jun 9
Changed: Sep 14
Last Checked: Sep 18 at 12:06PM
MLS# 494187
Copyright © 2026 Greater McAllen Association 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 2,790-square-foot storefront property in McAllen includes a retail display area, work area, dedicated storage, and a separate unit available for lease. The existing flower shop occupancy supports continued retail use, while the additional space can accommodate office, boutique retail, or service-oriented operations as supported by the layout.
Constructed in 2009, the building features stucco construction, a flat roof, central air, electric heating, an electric water heater, and off-street parking. The property is zoned CO and occupies 0.2181 acres at 806 S 16 1/2 Street in downtown McAllen.
Constructed in 2009, the building features stucco construction, a flat roof, central air, electric heating, an electric water heater, and off-street parking. The property is zoned CO and occupies 0.2181 acres at 806 S 16 1/2 Street in downtown McAllen.
Key Highlights
- 2,790‑square‑foot storefront property on 0.2181 acres
- Existing flower shop occupancy with retail display and workspace
- Separate unit available for lease
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
$39,822
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
9.05%
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%
$796,440
$796.4K
Cap Rate 7%
$568,886
$568.9K
Cap Rate 9%
$442,467
$442.5K
Market Conditions
NOI Build-Up for 2,790 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
$60.3K $21.60/SF
− Vacancy
−$3.4K −$1.21/SF
EGI
$56.9K $20.39/SF
− OpEx
−$17.1K −$6.12/SF
NOI
$39.8K $14.27/SF
Area
McAllen, TX
Vacancy
5.60%
Lease Rate
$21.60 /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%
$796,440
Cap Rate 7%
$568,886
Cap Rate 9%
$442,467
Alternative Uses
Best Use
Retail
$568.9K
$497.8K – $663.7K
NOI $39,822 @ 7.0% cap · market cap 9.05%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$757.6K
$662.9K – $883.9K
NOI $53,032 @ 7.0% cap · market cap 12.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,365
Businesses Nearby
Well-served
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
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Similar Off Market Nearby
- XOXO Flowers and Decor — 2000 s 10th st, mcallen, tx 78503
- Eleganza Floral Deco — inside palazzio bridal, 500 w expy 83, mcallen, tx 78501
- House of Bloom Floristry — 1111 S 10th St Suite A, McAllen, TX 78501
- Juanita's Flowers-All Occasion — 800 S 16 1/2 St, McAllen, TX 78501
- Fruitful Creations & Spirit — 800 S 16 1/2 St, McAllen, TX 78501
Frequently Asked Questions
What type of property is this?
Storefront property - Occupied retail storefront with a separate leasable unit and dedicated storage.
Where is this storefront property located?
The property is located at 806 S 16 1/2 Street McAllen, TX.
What is the asking price?
The asking price for this property is $440,000.
What are key features of this property?
This property features: 2,790‑square‑foot storefront property on 0.2181 acres; Existing flower shop occupancy with retail display and workspace; Separate unit available for lease
