Retail Center in Katy,
For Sale
Contact for pricing
1602 Avenue D, Katy, TX
Retail/Professional center with 16,069 SF net rentable area.
Property Size16,069 SF
Lot Size3.96 Acres
Price / SF$310.54
Days on Market457
Property Features for 1602 Avenue D
General Information
Standard status
Active
Size
16,069 SF
Lot size
3.96 Acres
Property subtype
RETAIL
Listing Agency:
Colliers - Houston
(713) 222-2111
Listed By:
Chris Klein · License #325140
(713) 830-2141
Source:
Moodyscre
Added: Jun 18, 2025
Changed: Sep 13
Last Checked: Sep 16 at 2:43PM
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 Colliers - Houston
Investment Insights
Based on property information with market context.
This retail and professional center features a net rentable area of approximately 16,069 square feet, situated on approximately 3.96 acres. The parking ratio is 3.85 spaces per 1,000 square feet leased. The current zoning is commercial land use/retail. The existing improvements include a tilt wall structure with a brick veneer finish, tall parapets, and generous soffits. The property also features concrete paved parking and service areas, along with extensive landscaping. Environmental assessment: clean, new in 2017. The tax rate for 2024 is $2.150789.
Key Highlights
- Net Rentable Area: ±16,069 SF Retail/Professional Center
- Land Size: ±3.96 Acres
- Parking Ratio: 3.85/1,000 SF leased
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
$217,659
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
4.36%
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%
$4,353,180
$4.4M
Cap Rate 7%
$3,109,414
$3.1M
Cap Rate 9%
$2,418,433
$2.4M
Market Conditions
NOI Build-Up for 16,069 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
$329.7K $20.52/SF
− Vacancy
−$18.8K −$1.17/SF
EGI
$310.9K $19.35/SF
− OpEx
−$93.3K −$5.81/SF
NOI
$217.7K $13.55/SF
Area
Fort Bend County, TX
Vacancy
5.70%
Lease Rate
$20.52 /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%
$4,353,180
Cap Rate 7%
$3,109,414
Cap Rate 9%
$2,418,433
Alternative Uses
Best Use
Retail
$3.11M
$2.72M – $3.63M
NOI $217,659 @ 7.0% cap · market cap 4.36%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$200.18M
$175.16M – $233.54M
NOI $14,012,633 @ 7.0% cap · market cap 280.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
850
Businesses Nearby
Balanced
Demand for This Use
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Business Placement
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in South region
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Similar Off Market Nearby
- Tiger Square — 6191-6193 Hwy Blvd, Katy, TX 77494
- midway shopping center — 5815 US-90, Katy, TX 77493
- Katy Plaza — Katy, TX 77493
Frequently Asked Questions
What type of property is this?
Shopping center - Retail/Professional center with 16,069 SF net rentable area.
Where is this shopping center located?
The property is located at 1602 Avenue D Katy, TX.
What is the asking price?
The asking price for this property is $4,990,000.
What are key features of this property?
This property features: Net Rentable Area: ±16,069 SF Retail/Professional Center; Land Size: ±3.96 Acres; Parking Ratio: 3.85/1,000 SF leased
