Versatile Mixed-Use Property in
For Sale
$3,950,000
1501 N Fairgrounds Rd, Midland, TX 79706
20,894 SF mixed-use property with office, shop, and tote facility.
Property Size20,894 SF
Lot Size3.83 Acres
Price / SF$189.05
Days on Market154
Property Features for 1501 N Fairgrounds Rd
General Information
Standard status
Active
Size
20,894 SF
Lot size
3.83 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$19,799
Building Details
Building Size
20,894 SF
Year Built
1978
Listing Agency:
NRG Realty Group, LLC
(432) 352-6714
Listed By:
Amy Brasher Barnett · License #9004023
(432) 352-6714
Source:
Re1midland
Added: Mar 26
Changed: Aug 26
Last Checked: Aug 25 at 8:50AM
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 NRG Realty Group, LLC
Investment Insights
Based on property information with market context.
This mixed-use property offers a total of 20,894 square feet on 3.83 acres, featuring executive office space, shop space, and a tote facility. The main building encompasses 13,754 square feet of office space and a 1,440-square-foot shop, both remodeled in 2015. The office area includes a reception area, an executive office suite with a private shower, 22 private offices, multiple restrooms, and an open office area suitable for cubicles. There are also two conference rooms, one smaller and one larger training/conference room. The west side of the building contains a parts office, crew space, men's and women's locker rooms, and an open storage area with one 8-foot garage door. A 5,700-square-foot tote facility is located behind the main building, providing a large outdoor work area. This property is suitable for a professional workspace, storage, or specialized work areas.
Key Highlights
- 20,894 SF of total space including office, shop, and tote facility on 3.83 acres.
- 13,754 SF of remodeled (2015) office space with 22 private offices and open office area.**
- Includes executive office suite with private shower.**
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
$252,734
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%
$5,054,680
$5.1M
Cap Rate 7%
$3,610,486
$3.6M
Cap Rate 9%
$2,808,156
$2.8M
Market Conditions
NOI Build-Up for 20,894 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
$401.2K $19.20/SF
− Vacancy
−$64.2K −$3.07/SF
EGI
$337.0K $16.13/SF
− OpEx
−$84.2K −$4.03/SF
NOI
$252.7K $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%
$5,054,680
Cap Rate 7%
$3,610,486
Cap Rate 9%
$2,808,156
Alternative Uses
Best Use
Office B
$3.61M
$3.16M – $4.21M
NOI $252,734 @ 7.0% cap · market cap 6.40%
Second Best
Mixed Use
$3.57M
$3.12M – $4.16M
NOI $249,553 @ 7.0% cap · market cap 6.32%
Theoretical Best
Office A
$4.93M
$4.31M – $5.75M
NOI $345,002 @ 7.0% cap · market cap 8.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
101
Businesses Nearby
Explore this area
Business Placement
Demographics for 79706, TX
31,805
Population
12,368
Households
2.6
Avg Household Size
32
Median Age
23%
College-Educated
87%
High-School Grad
689.5 sq mi
ZIP Area
46
Density / Sq Mi
$110,988
Median Household Income
$58,023
Median Earnings
$897
Median Rent
$280,500
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?
Mixed-use property - 20,894 SF mixed-use property with office, shop, and tote facility.
Where is this mixed-use property located?
The property is located at 1501 N Fairgrounds Rd Midland, TX.
What is the asking price?
The asking price for this property is $3,950,000.
What are key features of this property?
This property features: 20,894 SF of total space including office, shop, and tote facility on 3.83 acres.; 13,754 SF of remodeled (2015) office space with 22 private offices and open office area.**; Includes executive office suite with private shower.**
