Retail Portfolio with Development
For Sale
$2,899,990
2014 Commonwealth Street Houston, Houston, TX 77006
Contiguous five-parcel portfolio with four income-producing buildings and one undeveloped lot for development or hold.
Property Size10,750 SF
Lot Size0.56 Acres
Price / SF$269.77
Days on Market32
Property Features for 2014 Commonwealth Street Houston
General Information
Standard status
Active
Size
10,750 SF
Lot size
0.56 Acres
Property subtype
Land
Listing Agency:
(800) 683-5651
Listed By:
John Nesselhauf
(800) 683-5651
Source:
Jparhouston
Added: Jul 13
Changed: Aug 8
Last Checked: Aug 13 at 3:26AM
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 John Nesselhauf
Investment Insights
Based on property information with market context.
This offering presents a contiguous assemblage of five parcels totaling approximately 0.56 acres, including four income-producing commercial buildings totaling approximately 10,750 SF and one undeveloped lot. The current portfolio structure supports an estimated $17,200 per month in rental income while plans are worked through for redevelopment, owner-user use, or a long-term hold strategy.
The site is positioned for convenient access to Downtown, the Texas Medical Center, the Museum District, Hermann Park, and the Ion District.
As a multi-parcel commercial land and building portfolio, it provides immediate occupancy-based cash flow through the existing improvements and an additional undeveloped parcel intended to support future project planning.
The site is positioned for convenient access to Downtown, the Texas Medical Center, the Museum District, Hermann Park, and the Ion District.
As a multi-parcel commercial land and building portfolio, it provides immediate occupancy-based cash flow through the existing improvements and an additional undeveloped parcel intended to support future project planning.
Key Highlights
- Contiguous five‑parcel portfolio totaling approximately 0.56 acres in the heart of Montrose
- Four income‑producing commercial buildings totaling approximately 10,750 SF
- Includes one undeveloped lot for development or long‑term hold
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
$145,766
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
5.03%
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%
$2,915,320
$2.9M
Cap Rate 7%
$2,082,371
$2.1M
Cap Rate 9%
$1,619,622
$1.6M
Market Conditions
NOI Build-Up for 10,750 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
$220.6K $20.52/SF
− Vacancy
−$12.4K −$1.15/SF
EGI
$208.2K $19.37/SF
− OpEx
−$62.5K −$5.81/SF
NOI
$145.8K $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%
$2,915,320
Cap Rate 7%
$2,082,371
Cap Rate 9%
$1,619,622
Alternative Uses
Best Use
Retail
$2.08M
$1.82M – $2.43M
NOI $145,766 @ 7.0% cap · market cap 5.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.76M
$2.42M – $3.23M
NOI $193,500 @ 7.0% cap · market cap 6.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,550
Businesses Nearby
Explore this area
Business Placement
Demographics for 77006, TX
24,129
Population
16,654
Households
1.4
Avg Household Size
36
Median Age
80%
College-Educated
98%
High-School Grad
2.3 sq mi
ZIP Area
10,491
Density / Sq Mi
$102,003
Median Household Income
$73,275
Median Earnings
$1,761
Median Rent
$599,500
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?
Commercial land - Contiguous five-parcel portfolio with four income-producing buildings and one undeveloped lot for development or hold.
Where is this commercial land located?
The property is located at 2014 Commonwealth Street Houston Houston, TX.
What is the asking price?
The asking price for this property is $2,899,990.
What are key features of this property?
This property features: Contiguous five‑parcel portfolio totaling approximately 0.56 acres in the heart of Montrose; Four income‑producing commercial buildings totaling approximately 10,750 SF; Includes one undeveloped lot for development or long‑term hold
