Flex Space with Fenced
For Sale
$2,300,000
1804 S Expressway 281, Edinburg, TX 78542
Combined office and warehouse improvements include overhead access, clear-span work areas, and a secured outdoor storage area.
Property Size8,100 SF
Price / SF$283.95
Days on Market26
Property Features for 1804 S Expressway 281
General Information
Standard status
Active
Size
8,100 SF
Total Parking Spaces
12
Site & Location
Highway Access
Yes
Road Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Additional Details
Clear Span
Yes
Taxes and HOA fees
Annual Taxes
$10,986
Building Details
Building Size
8,100 SF
Listing Agency:
Key Realty
(956) 739-7893
Listed By:
Stephen Smith
(956) 739-7893
Source:
Exprealty
Added: Jul 29
Changed: Aug 22
Last Checked: Aug 22 at 8:51AM
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 Key Realty
Investment Insights
Based on property information with market context.
This flex-space property combines 8,100 square feet of office and warehouse improvements in a layout suited to industrial and commercial operations. The building includes professional office areas, four overhead bay doors, and clear-span work zones. A fenced yard provides secured outdoor space for equipment, fleet vehicles, and material storage, while twelve on-site parking spaces serve employees and customers. The AC units were replaced within the last three years.
Located at 1804 S Expressway 281 in Edinburg, the property offers access from the expressway frontage road and direct exposure along the corridor. Its configuration supports businesses requiring a mix of enclosed work areas, office space, vehicle access, and secured yard capacity.
Located at 1804 S Expressway 281 in Edinburg, the property offers access from the expressway frontage road and direct exposure along the corridor. Its configuration supports businesses requiring a mix of enclosed work areas, office space, vehicle access, and secured yard capacity.
Key Highlights
- 8,100 square feet of office and warehouse space
- Four overhead bay doors and clear‑span work areas
- Fenced yard for equipment, fleet vehicles, and material storage
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
$115,984
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
5.04%
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%
$2,319,680
$2.3M
Cap Rate 7%
$1,656,914
$1.7M
Cap Rate 9%
$1,288,711
$1.3M
Market Conditions
NOI Build-Up for 8,100 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
$179.8K $22.20/SF
− Vacancy
−$25.2K −$3.11/SF
EGI
$154.6K $19.09/SF
− OpEx
−$38.7K −$4.77/SF
NOI
$116.0K $14.32/SF
Area
Edinburg, TX
Vacancy
14.00%
Lease Rate
$22.20 /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%
$2,319,680
Cap Rate 7%
$1,656,914
Cap Rate 9%
$1,288,711
Alternative Uses
Best Use
Office B
$1.66M
$1.45M – $1.93M
NOI $115,984 @ 7.0% cap · market cap 5.04%
Second Best
Flex RnD
$897.6K
$785.4K – $1.05M
NOI $62,833 @ 7.0% cap · market cap 2.73%
Theoretical Best
Office A
$2.10M
$1.84M – $2.45M
NOI $147,122 @ 7.0% cap · market cap 6.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
278
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78542, TX
84,678
Population
25,198
Households
3.4
Avg Household Size
28
Median Age
13%
College-Educated
64%
High-School Grad
176.0 sq mi
ZIP Area
481
Density / Sq Mi
$52,962
Median Household Income
$30,377
Median Earnings
$876
Median Rent
$123,500
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?
Flex space - Combined office and warehouse improvements include overhead access, clear-span work areas, and a secured outdoor storage area.
Where is this flex space located?
The property is located at 1804 S Expressway 281 Edinburg, TX.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: 8,100 square feet of office and warehouse space; Four overhead bay doors and clear‑span work areas; Fenced yard for equipment, fleet vehicles, and material storage
