Freestanding Flex Space
For Sale
$2,150,000
2684 W Us Hwy 290, Fredericksburg, TX 78624
COMMERCIAL - Fredericksburg, TX
Property Size20,000 SF
Lot Size5.74 Acres
Price / SF$107.50
Days on Market37
Property Features for 2684 W Us Hwy 290
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
County Outside ETJ
Parking features
Carport, Covered
Fencing
Fenced
Subdivision
WW
Standard status
Active
APN
GE0 Co 411 1.5 acres GEO #399 4.24 acres
Size
20,000 SF
Lot size
5.74 Acres
Taxes and HOA fees
Tax Description
G E CO #411 1.5 G E CO #399 4.24, -SHOP
Legal Description
G E CO #411 1.5 G E CO #399 4.24, -SHOP
Utilities
Utilities
Propane
Sewer type
Septic Tank
Heating system
Electric (Heating), Central
Cooling system
Electric, Central Air
Water source
Well
Building Details
Year built
1997
Flooring type
Hardwood
Building materials
Metal Siding
Roof type
Metal
Listing Agency:
ERA Newlin & Company · ERA Real Estate
(325) 481-0500
Listed By:
Jeff Hameister · License #0594810
(325) 374-1737
Added: Jul 6
Changed: Aug 4
Last Checked: Aug 11 at 8:06PM
MLS# 200345
Copyright © 2026 San Angelo Association 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.
This flex space property includes three freestanding buildings with more than 20,000 square feet of combined space on 5.74 acres. The improvements provide private office areas with restrooms alongside configurations suitable for commercial, industrial, manufacturing, and distribution operations. Available electrical service includes both 240V 3-phase and 480V power. Metal siding, metal roofing, hardwood flooring, central heating and cooling, covered parking, fencing, a well, septic tank, and propane service are also included. The property was built in 1997.
Located at 2684 W Us Hwy 290, the property sits along US Highway 290 West and is less than 3 miles from Fredericksburg, Texas. Its setting in Gillespie County places the site near the commercial activity associated with the Fredericksburg area while retaining a substantial acreage component and multiple-building layout.
Located at 2684 W Us Hwy 290, the property sits along US Highway 290 West and is less than 3 miles from Fredericksburg, Texas. Its setting in Gillespie County places the site near the commercial activity associated with the Fredericksburg area while retaining a substantial acreage component and multiple-building layout.
Key Highlights
- 5.74‑acre flex space property with three freestanding buildings
- More than 20,000 square feet of combined building area
- 240V 3‑phase and 480V electrical power available
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
$164,155
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
7.64%
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%
$3,283,100
$3.3M
Cap Rate 7%
$2,345,071
$2.3M
Cap Rate 9%
$1,823,944
$1.8M
Market Conditions
NOI Build-Up for 20,000 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
$294.0K $14.70/SF
− Vacancy
−$41.5K −$2.07/SF
EGI
$252.5K $12.63/SF
− OpEx
−$88.4K −$4.42/SF
NOI
$164.2K $8.21/SF
Area
Gillespie County, TX
Vacancy
14.10%
Lease Rate
$14.70 /SF/Yr
Expense Ratio
35.00%
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%
$3,283,100
Cap Rate 7%
$2,345,071
Cap Rate 9%
$1,823,944
Alternative Uses
Best Use
Office B
$3.82M
$3.34M – $4.46M
NOI $267,300 @ 7.0% cap · market cap 12.43%
Second Best
Flex RnD
$2.35M
$2.05M – $2.74M
NOI $164,155 @ 7.0% cap · market cap 7.64%
Theoretical Best
Hotel Hospitality
$15.15M
$13.25M – $17.67M
NOI $1,060,200 @ 7.0% cap · market cap 49.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Heavy power
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
293
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 78624, TX
23,080
Population
12,421
Households
1.9
Avg Household Size
52
Median Age
37%
College-Educated
89%
High-School Grad
742.3 sq mi
ZIP Area
31
Density / Sq Mi
$67,987
Median Household Income
$37,047
Median Earnings
$1,347
Median Rent
$439,600
Median Home Value
Market
Vacancy Rate% for Office 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 - Multiple buildings combine private offices, restrooms, and industrial-capable electrical service on a fenced commercial property.
Where is this flex space located?
The property is located at 2684 W Us Hwy 290 Fredericksburg, TX.
What is the asking price?
The asking price for this property is $2,150,000.
What are key features of this property?
This property features: 5.74‑acre flex space property with three freestanding buildings; More than 20,000 square feet of combined building area; 240V 3‑phase and 480V electrical power available
