Midland Industrial/Flex Space
For Sale
Contact for pricing
2600 S County Rd 1242, Midland, TX 79706
Fully occupied industrial/flex space in Midland, TX, with value-add potential.
Property Size82,994 SF
Price / SF$156.64
Days on Market741
Property Features for 2600 S County Rd 1242
General Information
Standard status
Active
Size
82,994 SF
Property subtype
Industrial
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$1,085,129
Building Details
Year Built
2008
Buildings
10
Tenancy
Multi
Listing Agency:
Coldwell Banker Commercial Capital Advisors
(806) 784-3298
Listed By:
Jordan Wood · License #TX
Source:
Crexi
Added: Jul 29, 2024
Changed: Aug 8
Last Checked: Aug 8 at 9:23AM
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 Coldwell Banker Commercial Capital Advisors
Investment Insights
Based on property information with market context.
Located just outside the southwest city limits of Midland, TX, Capstone Industrial Park presents an investment opportunity. The property, situated off Business I-20, offers visibility and access. Its location, within one mile of the developing Tradewinds Blvd Corridor, provides access to entertainment, restaurants, and retail. The industrial/flex space property includes 10 units, totaling 82,994 square feet, designed for a diverse tenant mix. The property offers versatile use options to investors. The property is currently 100% occupied and features a caliche yard, ample parking, and high ceilings. Its location near major transportation routes enhances its appeal.
Key Highlights
- 100% Occupancy: Provides immediate and consistent income stream.
- Strong NOI and Cap Rate: $1,085,129 NOI and an 8.38% cap rate indicate a solid return on investment.
- Strategic Location: Situated just outside Midland city limits with excellent visibility and access off Business I‑20, near the developing Tradewinds Blvd Corridor.
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
$903,976
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
6.95%
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%
$18,079,520
$18.1M
Cap Rate 7%
$12,913,943
$12.9M
Cap Rate 9%
$10,044,178
$10.0M
Market Conditions
NOI Build-Up for 82,994 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
$1.13M $13.56/SF
− Vacancy
−$61.9K −$0.75/SF
EGI
$1.06M $12.81/SF
− OpEx
−$159.5K −$1.92/SF
NOI
$904.0K $10.89/SF
Area
Midland, TX
Vacancy
5.50%
Lease Rate
$13.56 /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%
$18,079,520
Cap Rate 7%
$12,913,943
Cap Rate 9%
$10,044,178
Alternative Uses
Best Use
Warehouse
$12.91M
$11.30M – $15.07M
NOI $903,976 @ 7.0% cap · market cap 6.95%
Second Best
Industrial
$10.64M
$9.31M – $12.41M
NOI $744,451 @ 7.0% cap · market cap 5.73%
Theoretical Best
Office A
$19.58M
$17.13M – $22.84M
NOI $1,370,397 @ 7.0% cap · market cap 10.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
68
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79706, TX
31,805
Population
12,368
Households
2.6
Avg Household Size
32
Median Age
23%
College-Educated
87%
High-School Grad
689.5 sq mi
ZIP Area
46
Density / Sq Mi
$110,988
Median Household Income
$58,023
Median Earnings
$897
Median Rent
$280,500
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Fully occupied industrial/flex space in Midland, TX, with value-add potential.
Where is this flex space located?
The property is located at 2600 S County Rd 1242 Midland, TX.
What is the asking price?
The asking price for this property is $13,000,000.
What are key features of this property?
This property features: 100% Occupancy: Provides immediate and consistent income stream.; Strong NOI and Cap Rate: **$1,085,129 NOI and an 8.38% cap rate indicate a solid return on investment.**; Strategic Location: Situated just outside Midland city limits with excellent visibility and access off Business I‑20, near the developing Tradewinds Blvd Corridor.
