Restaurant Space For
For Sale
Contact for pricing
2735 Bay Area Blvd, Houston, TX 77058
5,176 SF restaurant space available for immediate recapture.
Property Size5,176 SF
Price / SF$309.12
Days on Market166
Property Features for 2735 Bay Area Blvd
General Information
Standard status
Active
Size
5,176 SF
Property subtype
Retail
Building Details
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
DuWest Realty
Listed By:
Campbell Anderson · License #648151-B
(214) 720-0004
Source:
Crexi
Added: Mar 26
Changed: Sep 6
Last Checked: Sep 7 at 3:41AM
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 DuWest Realty
Investment Insights
Based on property information with market context.
A 5,176 square foot second-generation restaurant space is available for sale. The property fronts Bay Area Boulevard. The space is currently tenant-occupied but can be recaptured immediately. All furniture, fixtures, and equipment will remain in the space.
Key Highlights
- ±5,176 SF 2nd Gen Restaurant For Sale
- Fronting Bay Area Blvd
- Tenant currently operating, can be recaptured immediately
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
$79,659
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
4.98%
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%
$1,593,180
$1.6M
Cap Rate 7%
$1,137,986
$1.1M
Cap Rate 9%
$885,100
$885.1K
Market Conditions
NOI Build-Up for 5,176 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
$111.8K $21.60/SF
− Vacancy
−$5.6K −$1.08/SF
EGI
$106.2K $20.52/SF
− OpEx
−$26.6K −$5.13/SF
NOI
$79.7K $15.39/SF
Area
Houston, TX
Vacancy
5.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
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%
$1,593,180
Cap Rate 7%
$1,137,986
Cap Rate 9%
$885,100
Alternative Uses
Best Use
Specialty Retail
$1.14M
$995.7K – $1.33M
NOI $79,659 @ 7.0% cap · market cap 4.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.33M
$1.16M – $1.55M
NOI $93,168 @ 7.0% cap · market cap 5.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
633
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77058, TX
19,442
Population
11,203
Households
1.7
Avg Household Size
37
Median Age
44%
College-Educated
95%
High-School Grad
8.4 sq mi
ZIP Area
2,315
Density / Sq Mi
$66,471
Median Household Income
$51,423
Median Earnings
$1,362
Median Rent
$244,800
Median Home Value
Market
Vacancy Rate% for Retail in Houston, TX
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - 5,176 SF restaurant space available for immediate recapture.
Where is this conventional restaurant located?
The property is located at 2735 Bay Area Blvd Houston, TX.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: ±5,176 SF 2nd Gen Restaurant For Sale; Fronting Bay Area Blvd; Tenant currently operating, can be recaptured immediately
