8-Unit Mixed-Use
New
For Sale
$1,400,000
220 N 29th St, McAllen, TX 78501
The commercial space includes warehouse, office, retail, and restaurant components.
Property Size7,740 SF
Days on Market2
Property Features for 220 N 29th St
General Information
Standard status
Active
Size
7,740 SF
Property subtype
Retail
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
7,740 SF
Year Built
1983
Tenancy
Multi
Listed By:
Laura Liza Paz, SIOR · License #TX #437175
(956) 227-8000
Source:
Naiglobal
Added: Sep 28
Last Checked: Sep 29 at 8:23AM
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 Laura Liza Paz, SIOR
Investment Insights
Based on property information with market context.
This eight-unit commercial property brings together warehouse, office, retail, and restaurant space. The building dates to 1983 and is described as income-producing.
The property fronts N. 29th Street in McAllen, north of Business Highway 83. Its combination of commercial space types is distributed across eight units.
The property fronts N. 29th Street in McAllen, north of Business Highway 83. Its combination of commercial space types is distributed across eight units.
Key Highlights
- Eight commercial units
- Warehouse, office, retail, and restaurant space
- Located on N. 29th Street, north of Business Highway 83 in McAllen
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
$110,475
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
7.89%
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%
$2,209,500
$2.2M
Cap Rate 7%
$1,578,214
$1.6M
Cap Rate 9%
$1,227,500
$1.2M
Market Conditions
NOI Build-Up for 7,740 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
$167.2K $21.60/SF
− Vacancy
−$9.4K −$1.21/SF
EGI
$157.8K $20.39/SF
− OpEx
−$47.3K −$6.12/SF
NOI
$110.5K $14.27/SF
Area
McAllen, TX
Vacancy
5.60%
Lease Rate
$21.60 /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%
$2,209,500
Cap Rate 7%
$1,578,214
Cap Rate 9%
$1,227,500
Alternative Uses
Best Use
Retail
$1.58M
$1.38M – $1.84M
NOI $110,475 @ 7.0% cap · market cap 7.89%
Second Best
Mixed Use
$1.34M
$1.18M – $1.57M
NOI $94,041 @ 7.0% cap · market cap 6.72%
Theoretical Best
Office A
$2.10M
$1.84M – $2.45M
NOI $147,122 @ 7.0% cap · market cap 10.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
712
Businesses Nearby
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in South region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - The commercial space includes warehouse, office, retail, and restaurant components.
Where is this mixed-use property located?
The property is located at 220 N 29th St McAllen, TX.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Eight commercial units; Warehouse, office, retail, and restaurant space; Located on N. 29th Street, north of Business Highway 83 in McAllen
