Office Unit Near
New
For Sale
$255,000
2300 Michigan Ave, Midland, TX 79701
Commercial Sale, Midland, TX
Property Size1,300 SF
Price / SF$196.15
Days on Market4
Property Features for 2300 Michigan Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Gardens
Standard status
Active
Size
1,300 SF
Taxes and HOA fees
Tax Description
0.966 Acres, Gardens Subdivision , Block 14, E.175 OF S.257.8, Gardens Addition, Less 52.5 X 115 Triangle
Tax Annual Amount
13502
Legal Description
0.966 Acres, Gardens Subdivision , Block 14, E.175 OF S.257.8, Gardens Addition, Less 52.5 X 115 Triangle
Building Details
Year built
1974
Listing Agency:
ThisRealty
(432) 570-0705
Listed By:
Megan Garcia · License #739947
(432) 952-9286
Added: Aug 20
Last Checked: Aug 23 at 2:06PM
MLS# 50097709
Copyright © 2026 Permian Basin Board of Realtors. 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.
Unit 1 is a professional office suite with a flexible interior layout that can accommodate medical office use. The property was constructed in 1974 and is located at 2300 Michigan Ave in Midland, Texas.
Midland Memorial Hospital is nearby, along with dining and retail options. The suite’s configuration and surrounding services support a range of professional office applications.
Midland Memorial Hospital is nearby, along with dining and retail options. The suite’s configuration and surrounding services support a range of professional office applications.
Key Highlights
- Unit 1 professional office suite
- Flexible layout suitable for medical office use
- Constructed in 1974
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
$15,725
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
6.17%
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%
$314,500
$314.5K
Cap Rate 7%
$224,643
$224.6K
Cap Rate 9%
$174,722
$174.7K
Market Conditions
NOI Build-Up for 1,300 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
$25.0K $19.20/SF
− Vacancy
−$4.0K −$3.07/SF
EGI
$21.0K $16.13/SF
− OpEx
−$5.2K −$4.03/SF
NOI
$15.7K $12.10/SF
Area
Midland, TX
Vacancy
16.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
25.00%
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%
$314,500
Cap Rate 7%
$224,643
Cap Rate 9%
$174,722
Alternative Uses
Best Use
Office B
$224.6K
$196.6K – $262.1K
NOI $15,725 @ 7.0% cap · market cap 6.17%
Second Best
Healthcare Medical
$220.2K
$192.7K – $256.9K
NOI $15,416 @ 7.0% cap · market cap 6.05%
Theoretical Best
Office A
$306.7K
$268.3K – $357.8K
NOI $21,466 @ 7.0% cap · market cap 8.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,288
Businesses Nearby
Explore this area
Business Placement
Demographics for 79701, TX
29,748
Population
11,393
Households
2.6
Avg Household Size
33
Median Age
19%
College-Educated
73%
High-School Grad
12.1 sq mi
ZIP Area
2,459
Density / Sq Mi
$57,679
Median Household Income
$36,213
Median Earnings
$1,336
Median Rent
$204,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Flexible office layout with convenient access to medical, dining, and retail destinations.
Where is this office units located?
The property is located at 2300 Michigan Ave Midland, TX.
What is the asking price?
The asking price for this property is $255,000.
What are key features of this property?
This property features: Unit 1 professional office suite; Flexible layout suitable for medical office use; Constructed in 1974
