Unrestricted Office Units on Highway
For Sale
$550,000
16870 N Highway 123, San Marcos, TX 78666
CommercialSale, San Marcos, TX
Property Size2,000 SF
Lot Size0.43 Acres
Price / SF$275
Days on Market48
Property Features for 16870 N Highway 123
General Information
Property type
Commercial Sale
Property subtype
Office
Parking features
RV, Driveway, Special Needs
Exterior features
PropaneTankOwned
Accessibility
Accessible Approach with Ramp
Subdivision
Charles Henderson Surv #55 Abs
Lot features
Level, Outside City Limits, Quarter To Half Acre Lot
Elementary school
Bowie Elementary
Middle school
Owen Goodnight Middle School
High school
San Marcos High School
Elementary school district
San Marcos Cisd
Middle school district
San Marcos Cisd
High school district
San Marcos Cisd
Directions
Go Southeast from IH-35 from San Marcos towards Seguin on Highway 123 for approximately 5 miles. Property is on the right about 5 miles past the San Marcos High School football stadium.
Standard status
Active
APN
64207
Size
2,000 SF
Lot size
0.43 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
ABS: 147 SUR: CHARLES HENDERSON 0.4280 AC.
Tax Annual Amount
2526
Legal Description
ABS: 147 SUR: CHARLES HENDERSON 0.4280 AC.
Utilities
Utilities
Propane
Sewer type
Public Sewer, Septic Tank
Heating system
Electric (Heating), Central
Cooling system
Electric, Central Air
Water source
Public
Amenities
MH/RV space with utility hookups
rear garden/patio area
Building Details
Year built
1975
Floors in Building
1
Flooring type
Carpet, Tile
Building materials
Masonry, Stucco, WoodSiding
Roof type
Metal
Listing Agency:
Sundance Homes & Realty
(512) 450-4373
Listed By:
Thomas Yankovoy · License #0298005
(512) 450-4373
Added: Jul 5
Changed: Aug 20
Last Checked: Aug 21 at 7:06PM
MLS# 618724
Copyright © 2026 Central Texas Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Unrestricted office units on a 0.428-acre site at 16870 N Highway 123 in San Marcos, TX. The main building is 2,000 SF and features 3 rooms, a full-size kitchen, and 2 bathrooms. Improvements include an asphalt parking lot, a large highway display sign, and a separate large storage building. Behind the main building is an existing MH/RV space with utility hookups.
Built in 1975, the property includes central electric heating and central air conditioning, a metal roof, and interior finishes with carpet and tile. Accessibility is supported by an accessible approach with ramp. Exterior features include an owned propane tank.
Utilities are provided by Bluebonnet Electric and Crystal Clear Water, with public water service and public sewer plus a septic tank. The property presents a flexible setup for a range of commercial uses, and it is described as immediate move-in available.
Built in 1975, the property includes central electric heating and central air conditioning, a metal roof, and interior finishes with carpet and tile. Accessibility is supported by an accessible approach with ramp. Exterior features include an owned propane tank.
Utilities are provided by Bluebonnet Electric and Crystal Clear Water, with public water service and public sewer plus a septic tank. The property presents a flexible setup for a range of commercial uses, and it is described as immediate move-in available.
Key Highlights
- 0.428‑acre unrestricted office site on N Highway 123
- 2,000 SF main building with 3 rooms, full‑size kitchen, and 2 bathrooms
- Behind‑building existing MH/RV space with utility hookups
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
$47,691
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
8.67%
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%
$953,820
$953.8K
Cap Rate 7%
$681,300
$681.3K
Cap Rate 9%
$529,900
$529.9K
Market Conditions
NOI Build-Up for 2,000 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
$84.0K $42.00/SF
− Vacancy
−$20.4K −$10.21/SF
EGI
$63.6K $31.79/SF
− OpEx
−$15.9K −$7.95/SF
NOI
$47.7K $23.85/SF
Area
Hays County, TX
Vacancy
24.30%
Lease Rate
$42.00 /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%
$953,820
Cap Rate 7%
$681,300
Cap Rate 9%
$529,900
Alternative Uses
Best Use
Office B
$681.3K
$596.1K – $794.9K
NOI $47,691 @ 7.0% cap · market cap 8.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$836.1K
$731.6K – $975.4K
NOI $58,524 @ 7.0% cap · market cap 10.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
55
Businesses Nearby
Explore this area
Business Placement
Demographics for 78666, TX
86,584
Population
36,354
Households
2.4
Avg Household Size
27
Median Age
35%
College-Educated
89%
High-School Grad
192.4 sq mi
ZIP Area
450
Density / Sq Mi
$55,478
Median Household Income
$25,890
Median Earnings
$1,294
Median Rent
$271,900
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 units - Unrestricted office units on Highway 123 with a separate storage building, parking lot, and an existing MH/RV hookup area behind the main structure.
Where is this office units located?
The property is located at 16870 N Highway 123 San Marcos, TX.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: 0.428‑acre unrestricted office site on N Highway 123; 2,000 SF main building with 3 rooms, full‑size kitchen, and 2 bathrooms; Behind‑building existing MH/RV space with utility hookups
