Tenant-Occupied Storefront
New
For Sale
$222,500
1308 S Tower Rd, Edinburg, TX 78542
Tenant occupancy supports an established commercial use at this Tower Road property.
Property Size1,104 SF
Lot Size0.50 Acres
Price / SF$201.54
Days on Market3
Property Features for 1308 S Tower Rd
General Information
Standard status
Active
Size
1,104 SF
Lot size
0.50 Acres
Additional Details
Highway Access
Yes
Building Details
Year Built
2006
Listing Agency:
TNT Real Estate
(956) 563-3702
Listed By:
Homero Olivares
Source:
Aregtx
Added: Aug 18
Changed: Aug 19
Last Checked: Aug 19 at 10:15AM
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 TNT Real Estate
Investment Insights
Based on property information with market context.
This tenant-occupied storefront property includes approximately 1,104 SF of building area on approximately 0.5 acres. Constructed in 2006, the property offers a compact commercial footprint with frontage along Tower Road.
The site is near Highway 107 in Edinburg, providing a location with roadway exposure and convenient access. Showings are available by appointment only.
The site is near Highway 107 in Edinburg, providing a location with roadway exposure and convenient access. Showings are available by appointment only.
Key Highlights
- Tenant‑occupied storefront property
- Approximately 1,104 SF of building space
- Approximately 0.5 acres
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
$14,246
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
6.40%
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%
$284,920
$284.9K
Cap Rate 7%
$203,514
$203.5K
Cap Rate 9%
$158,289
$158.3K
Market Conditions
NOI Build-Up for 1,104 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
$20.5K $18.60/SF
− Vacancy
−$1.5K −$1.40/SF
EGI
$19.0K $17.21/SF
− OpEx
−$4.7K −$4.30/SF
NOI
$14.2K $12.90/SF
Area
Edinburg, TX
Vacancy
7.50%
Lease Rate
$18.60 /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%
$284,920
Cap Rate 7%
$203,514
Cap Rate 9%
$158,289
Alternative Uses
Best Use
Specialty Retail
$203.5K
$178.1K – $237.4K
NOI $14,246 @ 7.0% cap · market cap 6.40%
Second Best
Retail
$175.8K
$153.8K – $205.1K
NOI $12,304 @ 7.0% cap · market cap 5.53%
Theoretical Best
Office A
$286.5K
$250.7K – $334.2K
NOI $20,052 @ 7.0% cap · market cap 9.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
57
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 78542, TX
84,678
Population
25,198
Households
3.4
Avg Household Size
28
Median Age
13%
College-Educated
64%
High-School Grad
176.0 sq mi
ZIP Area
481
Density / Sq Mi
$52,962
Median Household Income
$30,377
Median Earnings
$876
Median Rent
$123,500
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Tenant occupancy supports an established commercial use at this Tower Road property.
Where is this storefront property located?
The property is located at 1308 S Tower Rd Edinburg, TX.
What is the asking price?
The asking price for this property is $222,500.
What are key features of this property?
This property features: Tenant‑occupied storefront property; Approximately 1,104 SF of building space; Approximately 0.5 acres
