Two-Story Victorian Office
For Sale
Contact for pricing
2509 Canal St, Houston, TX 77003
Historic commercial property with professional office potential and retail space on the first floor.
Property Size3,380 SF
Price / SF$192.31
Days on Market20
Property Features for 2509 Canal St
General Information
Standard status
Active
Size
3,380 SF
Property subtype
OFFICE
Building Details
Year Built
1903
Buildings
1
Stories
2
Building Size
3,380 SF
Listing Agency:
Carlos Garcia Realty
(281) 235-9904
Listed By:
Bill Garcia · License #174458
Source:
Moodyscre
Added: Aug 12
Changed: Aug 29
Last Checked: Aug 30 at 6:42PM
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 Carlos Garcia Realty
Investment Insights
Based on property information with market context.
This two-story Victorian-style property dates to 1903 and contains 3,380 square feet according to HCAD. The building combines office-oriented space with first-floor retail that was added in the 1940s, creating a distinctive commercial configuration for professional or law office use.
The property is located at 2509 Canal Street in Houston, across from a proposed 6 Acre HEB site. Downtown Houston’s Courthouse is within 1 mile, providing proximity to a major civic destination.
The property is located at 2509 Canal Street in Houston, across from a proposed 6 Acre HEB site. Downtown Houston’s Courthouse is within 1 mile, providing proximity to a major civic destination.
Key Highlights
- 3,380 SF‑HCAD historic commercial property
- Two‑story Victorian‑style building constructed in 1903
- First‑floor retail addition dates to the 1940s
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
$45,832
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
7.05%
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%
$916,640
$916.6K
Cap Rate 7%
$654,743
$654.7K
Cap Rate 9%
$509,244
$509.2K
Market Conditions
NOI Build-Up for 3,380 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
$69.4K $20.52/SF
− Vacancy
−$3.9K −$1.15/SF
EGI
$65.5K $19.37/SF
− OpEx
−$19.6K −$5.81/SF
NOI
$45.8K $13.56/SF
Area
Houston, TX
Vacancy
5.60%
Lease Rate
$20.52 /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%
$916,640
Cap Rate 7%
$654,743
Cap Rate 9%
$509,244
Alternative Uses
Best Use
Retail
$654.7K
$572.9K – $763.9K
NOI $45,832 @ 7.0% cap · market cap 7.05%
Second Best
Office B
$563.2K
$492.8K – $657.1K
NOI $39,424 @ 7.0% cap · market cap 6.07%
Theoretical Best
Office A
$869.1K
$760.5K – $1.01M
NOI $60,840 @ 7.0% cap · market cap 9.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,602
Businesses Nearby
Explore this area
Business Placement
Demographics for 77003, TX
11,874
Population
6,201
Households
1.9
Avg Household Size
36
Median Age
49%
College-Educated
93%
High-School Grad
2.7 sq mi
ZIP Area
4,398
Density / Sq Mi
$88,837
Median Household Income
$63,831
Median Earnings
$1,562
Median Rent
$363,000
Median Home Value
Market
Vacancy Rate% for Office in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Historic commercial property with professional office potential and retail space on the first floor.
Where is this office building located?
The property is located at 2509 Canal St Houston, TX.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: 3,380 SF‑HCAD historic commercial property; Two‑story Victorian‑style building constructed in 1903; First‑floor retail addition dates to the 1940s
