Medical Office with Roadside
For Sale
$1,300,000
1501 W Us Highway 83, Alamo, TX 78516
Flexible office space offers prominent signage and exposure to substantial daily vehicle traffic.
Property Size6,893 SF
Price / SF$188.60
Days on Market10
Property Features for 1501 W Us Highway 83
General Information
Standard status
Active
Size
6,893 SF
Additional Details
Road Access
Yes
Amenities
marquee signage
Building Details
Year Built
2001
Buildings
1
Listing Agency:
AXEN Realty
(210) 509-4911
Listed By:
Anna Hammad
Source:
Sarahildebrandaguilera
Added: Aug 20
Changed: Aug 29
Last Checked: Aug 25 at 5:25AM
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 AXEN Realty
Investment Insights
Based on property information with market context.
This medical office property contains 6,893 square feet of office space in a well-maintained building completed in 2001. The interior is described as flexible for office use, supporting a range of medical or professional configurations. A large roadside sign provides an additional identification feature for occupants and visitors.
The building fronts Business 83 and benefits from reported daily traffic exceeding 16,000 vehicles, creating consistent drive-by exposure. The surrounding area includes a high concentration of residences, adding established nearby population context. The property is located at 1501 W Us Highway 83.
The building fronts Business 83 and benefits from reported daily traffic exceeding 16,000 vehicles, creating consistent drive-by exposure. The surrounding area includes a high concentration of residences, adding established nearby population context. The property is located at 1501 W Us Highway 83.
Key Highlights
- 6,893 square feet of flexible office space
- Medical office building completed in 2001
- Frontage along Business 83
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
$115,299
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
8.87%
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%
$2,305,980
$2.3M
Cap Rate 7%
$1,647,129
$1.6M
Cap Rate 9%
$1,281,100
$1.3M
Market Conditions
NOI Build-Up for 6,893 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
$211.8K $30.72/SF
− Vacancy
−$58.0K −$8.42/SF
EGI
$153.7K $22.30/SF
− OpEx
−$38.4K −$5.58/SF
NOI
$115.3K $16.73/SF
Area
Hidalgo County, TX
Vacancy
27.40%
Lease Rate
$30.72 /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%
$2,305,980
Cap Rate 7%
$1,647,129
Cap Rate 9%
$1,281,100
Alternative Uses
Best Use
Office B
$1.65M
$1.44M – $1.92M
NOI $115,299 @ 7.0% cap · market cap 8.87%
Second Best
Healthcare Medical
$1.46M
$1.27M – $1.70M
NOI $101,991 @ 7.0% cap · market cap 7.85%
Theoretical Best
Hotel Hospitality
$5.19M
$4.54M – $6.06M
NOI $363,433 @ 7.0% cap · market cap 27.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
558
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78516, TX
34,506
Population
12,469
Households
2.8
Avg Household Size
32
Median Age
12%
College-Educated
59%
High-School Grad
37.8 sq mi
ZIP Area
913
Density / Sq Mi
$51,547
Median Household Income
$26,908
Median Earnings
$743
Median Rent
$102,900
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?
Medical Office Space - Flexible office space offers prominent signage and exposure to substantial daily vehicle traffic.
Where is this medical office space located?
The property is located at 1501 W Us Highway 83 Alamo, TX.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: 6,893 square feet of flexible office space; Medical office building completed in 2001; Frontage along Business 83
