Freestanding Office
For Sale
$425,000
1609 6th Street, McAllen, TX 78501
Adaptable office layout with two restrooms, storage space, and paved on-site parking.
Property Size2,250 SF
Price / SF$188.89
Days on Market243
Property Features for 1609 6th Street
General Information
Standard status
Active
Size
2,250 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$2,687
Amenities
two restrooms
spacious storage area
Central Air, Electric
3
Lot with Trees.
10 Parking Spaces. Paved Driveway.
Trees. City Road, Wooded.
Building Details
Year Built
1984
Buildings
1
Building Size
2,250 SF
Listing Agency:
(956) 624-7055
Listed By:
Coldwell Banker La Mansion
(956) 624-7055
Source:
Xome
Added: Dec 31, 2025
Changed: Aug 31
Last Checked: Aug 31 at 1:32PM
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 Coldwell Banker La Mansion
Investment Insights
Based on property information with market context.
This freestanding office building provides 2,250 square feet of office space with two restrooms and a spacious storage area. The interior includes central air and electric service, supporting a practical workplace configuration. The layout can accommodate office use and may be subdivided into smaller office spaces.
Built in 1984, the property includes 10 parking spaces, a paved driveway, and a lot with trees. Its city-road setting and wooded exterior provide direct access while retaining a landscaped outdoor character.
Built in 1984, the property includes 10 parking spaces, a paved driveway, and a lot with trees. Its city-road setting and wooded exterior provide direct access while retaining a landscaped outdoor character.
Key Highlights
- 2,250 square feet of office space
- Two restrooms and a spacious storage area
- Central air and electric interior features
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
$30,122
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
7.09%
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%
$602,440
$602.4K
Cap Rate 7%
$430,314
$430.3K
Cap Rate 9%
$334,689
$334.7K
Market Conditions
NOI Build-Up for 2,250 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
$47.3K $21.00/SF
− Vacancy
−$7.1K −$3.15/SF
EGI
$40.2K $17.85/SF
− OpEx
−$10.0K −$4.46/SF
NOI
$30.1K $13.39/SF
Area
McAllen, TX
Vacancy
15.00%
Lease Rate
$21.00 /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%
$602,440
Cap Rate 7%
$430,314
Cap Rate 9%
$334,689
Alternative Uses
Best Use
Office B
$430.3K
$376.5K – $502.0K
NOI $30,122 @ 7.0% cap · market cap 7.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$611.0K
$534.6K – $712.8K
NOI $42,768 @ 7.0% cap · market cap 10.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,589
Businesses Nearby
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
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?
Office building - Adaptable office layout with two restrooms, storage space, and paved on-site parking.
Where is this office building located?
The property is located at 1609 6th Street McAllen, TX.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: 2,250 square feet of office space; Two restrooms and a spacious storage area; Central air and electric interior features
