Retail
For Sale
Contact for pricing
16525 North Freeway, Houston, TX 77090
Large-format retail property with substantial interior floor area.
Property Size20,000 SF
Price / SF$160
Days on Market193
Property Features for 16525 North Freeway
General Information
Standard status
Active
Size
20,000 SF
Property subtype
Retail, Office, Industrial
Listed By:
Brandon Ngo · License #0808828
Source:
Crexi
Added: Feb 21
Changed: Aug 31
Last Checked: Aug 31 at 8:52PM
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 Brandon Ngo
Investment Insights
Based on property information with market context.
This retail property comprises 20,000 square feet of interior space. The asset is located at 16525 North Freeway in Houston, Texas, within the 77090 ZIP code. Its retail classification and substantial floor area support a large-format commercial layout.
Key Highlights
- 20,000 square feet of retail space
- Located at 16525 North Freeway, Houston, TX 77090
- Classified as retail space
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
$271,192
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
8.47%
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%
$5,423,840
$5.4M
Cap Rate 7%
$3,874,171
$3.9M
Cap Rate 9%
$3,013,244
$3.0M
Market Conditions
NOI Build-Up for 20,000 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
$410.4K $20.52/SF
− Vacancy
−$23.0K −$1.15/SF
EGI
$387.4K $19.37/SF
− OpEx
−$116.2K −$5.81/SF
NOI
$271.2K $13.56/SF
Area
Houston, TX
Vacancy
5.60%
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%
$5,423,840
Cap Rate 7%
$3,874,171
Cap Rate 9%
$3,013,244
Alternative Uses
Best Use
Retail
$3.87M
$3.39M – $4.52M
NOI $271,192 @ 7.0% cap · market cap 8.47%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.14M
$4.50M – $6.00M
NOI $360,000 @ 7.0% cap · market cap 11.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
344
Businesses Nearby
Explore this area
Business Placement
Demographics for 77090, TX
42,285
Population
19,076
Households
2.2
Avg Household Size
30
Median Age
25%
College-Educated
88%
High-School Grad
8.6 sq mi
ZIP Area
4,917
Density / Sq Mi
$48,196
Median Household Income
$35,936
Median Earnings
$1,228
Median Rent
$235,500
Median Home Value
Market
Vacancy Rate% for Retail in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Large-format retail property with substantial interior floor area.
Where is this retail space located?
The property is located at 16525 North Freeway Houston, TX.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: 20,000 square feet of retail space; Located at 16525 North Freeway, Houston, TX 77090; Classified as retail space
