Remodeled Flex Space with Fenced
For Sale
$995,000
2917 Industrial Ave, Midland, TX 79701
Remodeled commercial property combines finished office space with a warehouse, air conditioning, and a fully fenced yard.
Property Size5,900 SF
Price / SF$168.64
Days on Market2863
Property Features for 2917 Industrial Ave
General Information
Standard status
Active
Size
5,900 SF
Property subtype
Retail
Warehouse & Industrial
Warehouse Space
2,000 SF
Office Build-Out
3,900 SF
Conditioned Warehouse
Yes
Additional Details
Asking Price
$995,000
Fenced Yard
Yes
Amenities
security system
Electric
3
Lighted.
City Road, Paved Road.
Building Details
Year Built
1976
Year Renovated
2018
Stories
2
Building Size
5,900 SF
Listing Agency:
Pine & Beckett Realtors
(432) 349-7000
Listed By:
Chris Beckett · License #0439538
(432) 349-7000
Source:
Xome
Added: Oct 31, 2018
Changed: Aug 31
Last Checked: Aug 31 at 12:44PM
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 Pine & Beckett Realtors
Investment Insights
Based on property information with market context.
This flex property includes 3,900 SQ FT of finished office space and a 2,000 SQ FT warehouse with air conditioning and a restroom. The office layout features a reception area, five offices, three conference rooms, a kitchen, two private baths, and extensive storage. The upstairs area adds two offices, a conference room, and a full bath.
The property was remodeled in 2018 and includes a reverse osmosis system and a security system with cameras. The yard is fully fenced, and the property is served by paved city roads. Interior features include electric service, while exterior improvements include lighting. NNN lease terms are referenced in the property information.
The property was remodeled in 2018 and includes a reverse osmosis system and a security system with cameras. The yard is fully fenced, and the property is served by paved city roads. Interior features include electric service, while exterior improvements include lighting. NNN lease terms are referenced in the property information.
Key Highlights
- 3,900 SQ FT of finished office space
- 2,000 SQ FT warehouse with restroom and air conditioning
- Remodeled in 2018
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
$71,366
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
7.17%
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%
$1,427,320
$1.4M
Cap Rate 7%
$1,019,514
$1.0M
Cap Rate 9%
$792,956
$793.0K
Market Conditions
NOI Build-Up for 5,900 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
$113.3K $19.20/SF
− Vacancy
−$18.1K −$3.07/SF
EGI
$95.2K $16.13/SF
− OpEx
−$23.8K −$4.03/SF
NOI
$71.4K $12.10/SF
Area
Midland, TX
Vacancy
16.00%
Lease Rate
$19.20 /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%
$1,427,320
Cap Rate 7%
$1,019,514
Cap Rate 9%
$792,956
Alternative Uses
Best Use
Office B
$1.02M
$892.1K – $1.19M
NOI $71,366 @ 7.0% cap · market cap 7.17%
Second Best
Warehouse
$918.0K
$803.3K – $1.07M
NOI $64,263 @ 7.0% cap · market cap 6.46%
Theoretical Best
Office A
$1.39M
$1.22M – $1.62M
NOI $97,421 @ 7.0% cap · market cap 9.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
666
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79701, TX
29,748
Population
11,393
Households
2.6
Avg Household Size
33
Median Age
19%
College-Educated
73%
High-School Grad
12.1 sq mi
ZIP Area
2,459
Density / Sq Mi
$57,679
Median Household Income
$36,213
Median Earnings
$1,336
Median Rent
$204,000
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?
Flex space - Remodeled commercial property combines finished office space with a warehouse, air conditioning, and a fully fenced yard.
Where is this flex space located?
The property is located at 2917 Industrial Ave Midland, TX.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: 3,900 SQ FT of finished office space; 2,000 SQ FT warehouse with restroom and air conditioning; Remodeled in 2018
