Office-Warehouse with
For Sale
Contact for pricing
2304 FM 1585, Lubbock, TX 79423
Office-warehouse with heated and air-conditioned mezzanine office and a warehouse area supported by six overhead doors.
Property Size7,916 SF
Lot Size4.60 Acres
Price / SF$265.29
Days on Market177
Property Features for 2304 FM 1585
General Information
Standard status
Active
Size
7,916 SF
Lot size
4.60 Acres
Property subtype
RETAIL
Site & Location
Highway Access
Yes
Road Access
Yes
Listing Agency:
The Powell Group
Listed By:
David Powell, CCIM · License #0257988
(806) 239-0804
Source:
Moodyscre
Added: Mar 16
Changed: Sep 5
Last Checked: Aug 14 at 8:01AM
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 The Powell Group
Investment Insights
Based on property information with market context.
This office-warehouse property includes a total 7,916 SF combined office and warehouse configuration on 4.6 acres. The mezzanine office is heated and air-conditioned, and there is also an office at ground level. The upstairs office encompasses two office spaces, providing multiple dedicated work areas.
The warehouse portion is 5,071 SF and is served by six overhead doors to support loading and day-to-day operations. The property is located on FM 1585 in Lubbock, TX, and the public remarks note strong visibility along Loop 88.
With both ground-level and mezzanine office areas connected to a functional warehouse with multiple overhead doors, the layout can support businesses that need on-site office space alongside warehouse operations.
The warehouse portion is 5,071 SF and is served by six overhead doors to support loading and day-to-day operations. The property is located on FM 1585 in Lubbock, TX, and the public remarks note strong visibility along Loop 88.
With both ground-level and mezzanine office areas connected to a functional warehouse with multiple overhead doors, the layout can support businesses that need on-site office space alongside warehouse operations.
Key Highlights
- 7,916 SF office/warehouse on 4.6 acres in south Lubbock near Loop 88
- Heated and air‑conditioned mezzanine office with two office spaces upstairs
- Ground‑level office included
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
$108,297
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
5.16%
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%
$2,165,940
$2.2M
Cap Rate 7%
$1,547,100
$1.5M
Cap Rate 9%
$1,203,300
$1.2M
Market Conditions
NOI Build-Up for 7,916 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
$137.7K $17.40/SF
− Vacancy
−$10.3K −$1.31/SF
EGI
$127.4K $16.10/SF
− OpEx
−$19.1K −$2.41/SF
NOI
$108.3K $13.68/SF
Area
Lubbock, TX
Vacancy
7.50%
Lease Rate
$17.40 /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%
$2,165,940
Cap Rate 7%
$1,547,100
Cap Rate 9%
$1,203,300
Alternative Uses
Best Use
Warehouse
$1.55M
$1.35M – $1.80M
NOI $108,297 @ 7.0% cap · market cap 5.16%
Second Best
Industrial
$1.27M
$1.11M – $1.49M
NOI $89,186 @ 7.0% cap · market cap 4.25%
Theoretical Best
Office A
$2.00M
$1.75M – $2.33M
NOI $139,695 @ 7.0% cap · market cap 6.65%
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
18
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79423, TX
42,311
Population
18,463
Households
2.3
Avg Household Size
35
Median Age
38%
College-Educated
94%
High-School Grad
64.2 sq mi
ZIP Area
659
Density / Sq Mi
$82,906
Median Household Income
$45,520
Median Earnings
$1,284
Median Rent
$222,500
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 - Office-warehouse with heated and air-conditioned mezzanine office and a warehouse area supported by six overhead doors.
Where is this flex space located?
The property is located at 2304 FM 1585 Lubbock, TX.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: 7,916 SF office/warehouse on 4.6 acres in south Lubbock near Loop 88; Heated and air‑conditioned mezzanine office with two office spaces upstairs; Ground‑level office included
