Flex Space with Train Caboose
For Sale
$998,000
206 Highway 35 S, Rockport, TX 78382
SINGLE_FAMILY - Rockport, TX
Property Size8,175 SF
Lot Size0.94 Acres
Price / SF$122.08
Days on Market511
Property Features for 206 Highway 35 S
General Information
Property type
Residential
Property subtype
Office
Interior features
Storage
Exterior features
Storage
Subdivision
Smith & Wood
Lot features
Corner Lot, Level
Directions
Hwy 35, Exit Market, R on Market, L on 35, Property sits in the Bend
Standard status
Active
APN
5550021009000
Size
8,175 SF
Lot size
0.94 Acres
Taxes and HOA fees
Tax Description
Smith And Wood, BLOCK 21, Lot 9 -14, BLOCK 21, LOT 5, , BLOCK 21, LOT 7 & 8
Legal Description
Smith And Wood, BLOCK 21, Lot 9 -14, BLOCK 21, LOT 5, , BLOCK 21, LOT 7 & 8
Utilities
Sewer type
Public Sewer
Heating system
Ductless (Heating)
Cooling system
Ductless
Water source
Public
Building Details
Year built
1982
Floors in Building
1
Building materials
MetalSiding
Roof type
Metal, Shingle
Additional Structures
Storage
Listing Agency:
Keller Williams Coastal Bend · Keller Williams Realty
(361) 225-7900
Listed By:
Brianna Myers · License #0744446
(936) 671-2671
Added: Mar 20, 2025
Changed: Jul 29
Last Checked: Aug 12 at 11:06PM
MLS# 456343
Copyright © 2026 South Texas Multiple Listing Service, LLC. 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.
Flex space offering a total of 8,175 square feet on a 0.94-acre lot, built in 1982. The property includes a 4,950 square foot main metal building with 3-phase 220V power, five overhead doors, two restrooms, and an air-conditioned office with a loft plus a large storage room. A 525 square foot cinderblock addition connects directly to the warehouse for additional workspace.
An additional 1,500 square foot office and break room building provides 1,000 square feet of air-conditioned area, including a kitchen/lounge, two private offices, and a full bathroom with washer/dryer hookups. There is also a 500 square foot workshop with single-phase 220V. The standout feature is a real train caboose positioned on actual tracks, currently improved with a 1,200 square foot attached structure including two restrooms and single-phase 220V service.
The property has public water and public sewer, and the existing tenant may remain for immediate income potential. Located on Highway 35 in Rockport’s commercial corridor, the site is suited for users seeking both warehouse and office space.
An additional 1,500 square foot office and break room building provides 1,000 square feet of air-conditioned area, including a kitchen/lounge, two private offices, and a full bathroom with washer/dryer hookups. There is also a 500 square foot workshop with single-phase 220V. The standout feature is a real train caboose positioned on actual tracks, currently improved with a 1,200 square foot attached structure including two restrooms and single-phase 220V service.
The property has public water and public sewer, and the existing tenant may remain for immediate income potential. Located on Highway 35 in Rockport’s commercial corridor, the site is suited for users seeking both warehouse and office space.
Key Highlights
- Real train caboose on actual tracks with a 1,200 sq. ft. attached structure, two restrooms, and single‑phase 220V
- 4,950 sq. ft. main metal warehouse with 3‑phase 220V power and five overhead doors
- Air‑conditioned office with loft plus large storage room within the main building
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
$76,263
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
7.64%
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%
$1,525,260
$1.5M
Cap Rate 7%
$1,089,471
$1.1M
Cap Rate 9%
$847,367
$847.4K
Market Conditions
NOI Build-Up for 8,175 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
$127.5K $15.60/SF
− Vacancy
−$10.2K −$1.25/SF
EGI
$117.3K $14.35/SF
− OpEx
−$41.1K −$5.02/SF
NOI
$76.3K $9.33/SF
Area
Aransas County, TX
Vacancy
8.00%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
35.00%
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%
$1,525,260
Cap Rate 7%
$1,089,471
Cap Rate 9%
$847,367
Alternative Uses
Best Use
Office B
$1.66M
$1.46M – $1.94M
NOI $116,500 @ 7.0% cap · market cap 11.67%
Second Best
Flex RnD
$1.09M
$953.3K – $1.27M
NOI $76,263 @ 7.0% cap · market cap 7.64%
Theoretical Best
Office A
$3.13M
$2.73M – $3.65M
NOI $218,757 @ 7.0% cap · market cap 21.92%
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
Location Intelligence
Trade Area within ½ mile
54
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78382, TX
19,432
Population
13,048
Households
1.5
Avg Household Size
53
Median Age
30%
College-Educated
92%
High-School Grad
79.9 sq mi
ZIP Area
243
Density / Sq Mi
$63,434
Median Household Income
$38,741
Median Earnings
$1,147
Median Rent
$238,200
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Flex space on Highway 35 with air-conditioned office areas, multiple overhead doors, and a real train caboose on tracks.
Where is this flex space located?
The property is located at 206 Highway 35 S Rockport, TX.
What is the asking price?
The asking price for this property is $998,000.
What are key features of this property?
This property features: Real train caboose on actual tracks with a 1,200 sq. ft. attached structure, two restrooms, and single‑phase 220V; 4,950 sq. ft. main metal warehouse with 3‑phase 220V power and five overhead doors; Air‑conditioned office with loft plus large storage room within the main building
