Shopping Center with
New
For Sale
$11,041,565
205 S Main St, Red Oak, TX 75154
Brick construction, outdoor gathering space and a mix of service and retail businesses shape the center’s tenant offering.
Property Size42,997 SF
Price / SF$256.80
Days on Market2
Property Features for 205 S Main St
General Information
Standard status
Active
Size
42,997 SF
Property subtype
Shopping Strip
Occupancy
97%
Amenities
outdoor gathering areas
children's playground
monument signage
DIVERSE TENANT MIX DRIVES TRAFFIC ACROSS MULTIPLE DAYPARTS
DIRECTLY ACROSS FROM RED OAK HIGH SCHOOL
STRONG LEASING MOMENTUM | LIMITED REMAINING VACANCY
AMENITIZED RETAIL CENTER | FUTURE DEVELOPMENT POTENTIAL
METAL ROOFING SYSTEMS ACROSS THE PROPERTY
Building Details
Building Size
42,997 SF
Year Built
2005
Construction
brick
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Dallas
Listed By:
Philip Levy · License #License(s): TX: 0522087-SA
(972) 755-5225
Source:
Marcusmillichap
Added: Sep 26
Last Checked: Sep 26 at 2:58PM
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 Marcus & Millichap - Dallas
Investment Insights
Based on property information with market context.
This 42,997-square-foot shopping center, built in 2005, is approximately 96.5% occupied. Its tenant mix spans restaurants, education, personal care, services and experiential businesses. Brick construction, monument signage, parking, outdoor gathering areas and a children’s playground are among the property’s physical features.
The center fronts State Highway 342 in Red Oak, across from Red Oak High School and near several Red Oak ISD campuses. A McDonald’s is under construction 0.1 miles away, and Google, Compass Datacenters and other major employers are investing in the broader south-DFW corridor.
The center fronts State Highway 342 in Red Oak, across from Red Oak High School and near several Red Oak ISD campuses. A McDonald’s is under construction 0.1 miles away, and Google, Compass Datacenters and other major employers are investing in the broader south-DFW corridor.
Key Highlights
- 42,997‑square‑foot center with approximately 96.5% occupancy
- Built in 2005
- Retail, restaurant, education, personal care, service and experiential tenant categories
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
$713,681
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
6.46%
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%
$14,273,620
$14.3M
Cap Rate 7%
$10,195,443
$10.2M
Cap Rate 9%
$7,929,789
$7.9M
Market Conditions
NOI Build-Up for 42,997 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
$1.07M $24.96/SF
− Vacancy
−$53.7K −$1.25/SF
EGI
$1.02M $23.71/SF
− OpEx
−$305.9K −$7.11/SF
NOI
$713.7K $16.60/SF
Area
Ellis County, TX
Vacancy
5.00%
Lease Rate
$24.96 /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%
$14,273,620
Cap Rate 7%
$10,195,443
Cap Rate 9%
$7,929,789
Alternative Uses
Best Use
Retail
$10.20M
$8.92M – $11.89M
NOI $713,681 @ 7.0% cap · market cap 6.46%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$469.17M
$410.52M – $547.36M
NOI $32,841,769 @ 7.0% cap · market cap 297.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
96.5%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
267
Businesses Nearby
33k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 52%
Dining 48%
Whataburger
Dining
14,725 visits/mo
0.0 miles
7-Eleven
Shops & Services
13,670 visits/mo
0.2 miles
Chevron
Shops & Services
3,834 visits/mo
0.1 miles
Mr. Jim's Pizza
Dining
1,259 visits/mo
0.1 miles
Demographics for 75154, TX
45,894
Population
17,170
Households
2.7
Avg Household Size
36
Median Age
31%
College-Educated
88%
High-School Grad
47.8 sq mi
ZIP Area
960
Density / Sq Mi
$96,150
Median Household Income
$48,112
Median Earnings
$1,446
Median Rent
$296,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Similar Off Market Nearby
- Main Street Plaza — 205 Main St, Red Oak, TX 75154
Frequently Asked Questions
What type of property is this?
Shopping center - Brick construction, outdoor gathering space and a mix of service and retail businesses shape the center’s tenant offering.
Where is this shopping center located?
The property is located at 205 S Main St Red Oak, TX.
What is the asking price?
The asking price for this property is $11,041,565.
What are key features of this property?
This property features: 42,997‑square‑foot center with approximately 96.5% occupancy; Built in 2005; Retail, restaurant, education, personal care, service and experiential tenant categories
