Industrial Flex Property with
For Sale
$945,000
224 E E Cottage St, Sherman, TX 75090
C2-zoned industrial site with multiple structures, three-phase power, secured fencing, and flexible shop and storage functionality.
Property Size10,200 SF
Lot Size3.10 Acres
Price / SF$92.65
Days on Market43
Property Features for 224 E E Cottage St
General Information
Standard status
Active
Size
10,200 SF
Lot size
3.10 Acres
Zoning
C2
Site & Location
Road Access
Yes
Fenced Yard
Yes
Utilities to Site
Yes
Additional Details
Three-Phase Power
Yes
Building Details
Year Built
1985
Listing Agency:
eXp Realty LLC
(888) 519-7431
Listed By:
Eric Rhoades · License #0617278
Source:
Yourdavisteam
Added: Jul 20
Changed: Aug 29
Last Checked: Aug 30 at 8:48PM
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 eXp Realty LLC
Investment Insights
Based on property information with market context.
This C2-zoned flex property occupies approximately 3.1 acres at 224 E E Cottage Street in Sherman, Texas. The improvements include a primary shop estimated at approximately 7,000–8,000 SF, subject to buyer verification, with a pull-through arrangement, four roll-up doors, approximate 12.5’ door clearance, and approximate 14.5’ eave height. The shop is insulated and supported by three-phase power.
The site offers access from two streets with multiple entry and exit points. Recent work includes fencing, security lighting, electrical updates, roof repairs, gutters, and new gravel. An enclosed lean-to provides additional storage with four roll-up bay doors. A separate exterior B-deck building is estimated at approximately 1,600 SF, subject to buyer verification, with electricity and plumbing in place for water.
The site offers access from two streets with multiple entry and exit points. Recent work includes fencing, security lighting, electrical updates, roof repairs, gutters, and new gravel. An enclosed lean-to provides additional storage with four roll-up bay doors. A separate exterior B-deck building is estimated at approximately 1,600 SF, subject to buyer verification, with electricity and plumbing in place for water.
Key Highlights
- Approximately 3.1 acres with C2 zoning and access from two streets
- Primary shop estimated at approximately 7,000–8,000 SF; buyer to verify
- Pull‑through shop with four roll‑up doors, approximate 12.5’ height, and approximate 14.5’ eave height
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
$64,521
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
6.83%
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%
$1,290,420
$1.3M
Cap Rate 7%
$921,729
$921.7K
Cap Rate 9%
$716,900
$716.9K
Market Conditions
NOI Build-Up for 10,200 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
$83.2K $8.16/SF
− Vacancy
−$7.3K −$0.72/SF
EGI
$75.9K $7.44/SF
− OpEx
−$11.4K −$1.12/SF
NOI
$64.5K $6.33/SF
Area
Grayson County, TX
Vacancy
8.80%
Lease Rate
$8.16 /SF/Yr
Expense Ratio
15.00%
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%
$1,290,420
Cap Rate 7%
$921,729
Cap Rate 9%
$716,900
Alternative Uses
Best Use
Warehouse
$921.7K
$806.5K – $1.08M
NOI $64,521 @ 7.0% cap · market cap 6.83%
Second Best
Industrial
$759.1K
$664.2K – $885.6K
NOI $53,135 @ 7.0% cap · market cap 5.62%
Theoretical Best
Hotel Hospitality
$5.23M
$4.58M – $6.10M
NOI $366,282 @ 7.0% cap · market cap 38.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
101
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 75090, TX
25,002
Population
9,602
Households
2.6
Avg Household Size
35
Median Age
15%
College-Educated
84%
High-School Grad
78.5 sq mi
ZIP Area
318
Density / Sq Mi
$58,586
Median Household Income
$36,230
Median Earnings
$1,111
Median Rent
$163,500
Median Home Value
Market
Vacancy Rate% for Industrial 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 - C2-zoned industrial site with multiple structures, three-phase power, secured fencing, and flexible shop and storage functionality.
Where is this flex space located?
The property is located at 224 E E Cottage St Sherman, TX.
What is the asking price?
The asking price for this property is $945,000.
What are key features of this property?
This property features: Approximately 3.1 acres with C2 zoning and access from two streets; Primary shop estimated at approximately 7,000–8,000 SF; buyer to verify; Pull‑through shop with four roll‑up doors, approximate 12.5’ height, and approximate 14.5’ eave height
