Steel-Building Flex
For Sale
$675,000
2309 Garden City Hwy, Midland, TX 79701
Fenced flex property with city water, city sewer, and a private well.
Property Size2,400 SF
Price / SF$281.25
Days on Market26
Property Features for 2309 Garden City Hwy
General Information
Standard status
Active
Size
2,400 SF
Property subtype
Retail
Additional Details
Fenced Yard
Yes
Taxes and HOA fees
Annual Taxes
$2,343
Amenities
Electric
3
Covered, Parking Structure.
City Road, Paved Road.
Building Details
Year Built
1965
Buildings
1
Stories
1
Building Size
2,400 SF
Construction
steel
Listing Agency:
(432) 935-1090
Listed By:
Legacy Real Estate
(432) 935-1090
Source:
Xome
Added: Aug 4
Changed: Aug 21
Last Checked: Aug 29 at 6:45AM
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 Legacy Real Estate
Investment Insights
Based on property information with market context.
This flex-space property includes a 2,400-square-foot steel building constructed in 1965, with a 40-by-60-foot footprint and metal roofing. The site is fenced and includes a covered parking structure, supporting a range of commercial or industrial operations. City water and sewer serve the property, while a private water well is positioned at the northeast corner.
Located within Midland city limits at 2309 Garden City Hwy, the property has access from both a city road and a paved road. The current tenant is expected to vacate by the end of August, creating a defined transition point for future occupancy. Its existing building, fencing, parking structure, and utility connections provide a practical base for an owner-user or investor.
Located within Midland city limits at 2309 Garden City Hwy, the property has access from both a city road and a paved road. The current tenant is expected to vacate by the end of August, creating a defined transition point for future occupancy. Its existing building, fencing, parking structure, and utility connections provide a practical base for an owner-user or investor.
Key Highlights
- 2,400 sq. ft. steel building with a 40x60 footprint
- Metal roof and fenced site
- City water and city sewer service
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
$21,528
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
3.19%
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%
$430,560
$430.6K
Cap Rate 7%
$307,543
$307.5K
Cap Rate 9%
$239,200
$239.2K
Market Conditions
NOI Build-Up for 2,400 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
$32.5K $13.56/SF
− Vacancy
−$1.8K −$0.75/SF
EGI
$30.8K $12.81/SF
− OpEx
−$9.2K −$3.84/SF
NOI
$21.5K $8.97/SF
Area
Midland, TX
Vacancy
5.50%
Lease Rate
$13.56 /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%
$430,560
Cap Rate 7%
$307,543
Cap Rate 9%
$239,200
Alternative Uses
Best Use
Industrial
$307.5K
$269.1K – $358.8K
NOI $21,528 @ 7.0% cap · market cap 3.19%
Second Best
Flex RnD
$301.7K
$264.0K – $351.9K
NOI $21,116 @ 7.0% cap · market cap 3.13%
Theoretical Best
Office A
$566.1K
$495.4K – $660.5K
NOI $39,629 @ 7.0% cap · market cap 5.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
186
Businesses Nearby
Well-served
Demand for This Use
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 Industrial in South region
Questions? Ask Rey
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Similar Off Market Nearby
- Moe's Southwest Grill — 3302 Garden City Hwy, Midland, TX 79706
Frequently Asked Questions
What type of property is this?
Flex space - Fenced flex property with city water, city sewer, and a private well.
Where is this flex space located?
The property is located at 2309 Garden City Hwy Midland, TX.
What is the asking price?
The asking price for this property is $675,000.
What are key features of this property?
This property features: 2,400 sq. ft. steel building with a 40x60 footprint; Metal roof and fenced site; City water and city sewer service
