Renovated Flex Space with Drive-In
For Sale
$850,000
1316 Franklin Ave # 1320, Waco, TX 76701
Renovated in 2023, the property combines conditioned office space with warehouse areas and a small yard.
Property Size8,400 SF
Price / SF$101.19
Days on Market49
Property Features for 1316 Franklin Ave # 1320
General Information
Standard status
Active
Size
8,400 SF
Property subtype
Industrial
Zoning
M-2
Additional Details
Outdoor Storage
Yes
Building Details
Building Size
8,400 SF
Year Built
1966
Year Renovated
2023
Listing Agency:
Reid Peevey Commercial Real Estate
Listed By:
Josh Barrett · License #TX #736690
(254) 400-2884
Source:
Reidpeevey
Added: Aug 1
Changed: Sep 17
Last Checked: Sep 16 at 1:44PM
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 Reid Peevey Commercial Real Estate
Investment Insights
Based on property information with market context.
This 8,400 SF flex property provides a combination of conditioned office space and industrial areas suited to warehouse and storage operations. The layout includes a drive-in entry warehouse/storage area, a separate back warehouse, and a small yard. Originally built in 1966, the property was renovated in 2023.
The building is located at 1316 Franklin Ave # 1320 in Waco, TX 76701, with M-2 zoning supporting its industrial classification. Drive-in access and multiple warehouse areas add practical functionality for users requiring both office accommodation and enclosed storage or work space.
The building is located at 1316 Franklin Ave # 1320 in Waco, TX 76701, with M-2 zoning supporting its industrial classification. Drive-in access and multiple warehouse areas add practical functionality for users requiring both office accommodation and enclosed storage or work space.
Key Highlights
- 8,400 SF flex property
- Renovated in 2023; originally built in 1966
- Conditioned office space
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
$74,247
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
8.73%
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%
$1,484,940
$1.5M
Cap Rate 7%
$1,060,671
$1.1M
Cap Rate 9%
$824,967
$825.0K
Market Conditions
NOI Build-Up for 8,400 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
$115.9K $13.80/SF
− Vacancy
−$9.9K −$1.17/SF
EGI
$106.1K $12.63/SF
− OpEx
−$31.8K −$3.79/SF
NOI
$74.2K $8.84/SF
Area
Waco, TX
Vacancy
8.50%
Lease Rate
$13.80 /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%
$1,484,940
Cap Rate 7%
$1,060,671
Cap Rate 9%
$824,967
Alternative Uses
Best Use
Office B
$1.67M
$1.46M – $1.95M
NOI $116,783 @ 7.0% cap · market cap 13.74%
Second Best
Flex RnD
$1.21M
$1.06M – $1.41M
NOI $84,554 @ 7.0% cap · market cap 9.95%
Theoretical Best
Office A
$2.22M
$1.94M – $2.59M
NOI $155,131 @ 7.0% cap · market cap 18.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,048
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 76701, TX
1,674
Population
1,029
Households
1.6
Avg Household Size
29
Median Age
32%
College-Educated
92%
High-School Grad
1.1 sq mi
ZIP Area
1,522
Density / Sq Mi
$24,593
Median Household Income
$21,897
Median Earnings
$1,008
Median Rent
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Broken G BBQ — 511 S 8th St, Waco, TX 76706
- Club Sandwich Food Truck — 601 Webster Ave, Waco, TX 76706
Frequently Asked Questions
What type of property is this?
Flex space - Renovated in 2023, the property combines conditioned office space with warehouse areas and a small yard.
Where is this flex space located?
The property is located at 1316 Franklin Ave # 1320 Waco, TX.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 8,400 SF flex property; Renovated in 2023; originally built in 1966; Conditioned office space
