Distribution Center with Rail
For Sale
$8,064,516
2801 North Interstate 35, Denton, TX 76207
Industrial distribution facility with substantial office space, covered dock capacity, rail service, and high-clearance warehouse areas.
Property Size27,041 SF
Price / SF$298.23
Days on Market91
Property Features for 2801 North Interstate 35
General Information
Standard status
Active
Size
27,041 SF
Property subtype
Industrial
Listing Agency:
CBRE - Corporate
(817) 333-1118
Listed By:
David Walters · License #430903
(817) 333-1118
Source:
Cbre
Added: Jun 2
Changed: Aug 30
Last Checked: Aug 30 at 3:04PM
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 CBRE - Corporate
Investment Insights
Based on property information with market context.
This distribution center includes approximately 78,432 SF of building area, including approximately 24,718 SF of office space. The facility also has approximately 41,600 SF of covered dock area that is not included in the total building square footage. Warehouse features include 26-foot ceiling height, 32-foot by 38-foot column spacing, 11 dock positions with levelers and lights, and a sprinkler system. Men’s and women’s locker rooms with showers support on-site operations.
The property occupies approximately 5.73 acres and offers rail loading through Kansas City Southern. Constructed in 1979, the facility combines warehouse, office, dock, employee-support, and rail-loading components within one industrial distribution property.
The property occupies approximately 5.73 acres and offers rail loading through Kansas City Southern. Constructed in 1979, the facility combines warehouse, office, dock, employee-support, and rail-loading components within one industrial distribution property.
Key Highlights
- Approximately 78,432 SF building with approximately 24,718 SF of office space
- Approximately 41,600 SF of covered dock area, excluded from total building SF
- 11 dock positions equipped with levelers and lights
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
$424,375
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
5.26%
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%
$8,487,500
$8.5M
Cap Rate 7%
$6,062,500
$6.1M
Cap Rate 9%
$4,715,278
$4.7M
Market Conditions
NOI Build-Up for 27,041 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
$730.1K $27.00/SF
− Vacancy
−$164.3K −$6.08/SF
EGI
$565.8K $20.93/SF
− OpEx
−$141.5K −$5.23/SF
NOI
$424.4K $15.69/SF
Area
Denton, TX
Vacancy
22.50%
Lease Rate
$27.00 /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%
$8,487,500
Cap Rate 7%
$6,062,500
Cap Rate 9%
$4,715,278
Alternative Uses
Best Use
Office B
$6.06M
$5.30M – $7.07M
NOI $424,375 @ 7.0% cap · market cap 5.26%
Second Best
Warehouse
$2.69M
$2.35M – $3.13M
NOI $188,039 @ 7.0% cap · market cap 2.33%
Theoretical Best
Office A
$8.45M
$7.39M – $9.86M
NOI $591,393 @ 7.0% cap · market cap 7.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
721
Businesses Nearby
Explore this area
Business Placement
Demographics for 76207, TX
16,097
Population
7,657
Households
2.1
Avg Household Size
41
Median Age
45%
College-Educated
93%
High-School Grad
40.3 sq mi
ZIP Area
399
Density / Sq Mi
$91,026
Median Household Income
$41,830
Median Earnings
$1,654
Median Rent
$361,400
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Distribution center - Industrial distribution facility with substantial office space, covered dock capacity, rail service, and high-clearance warehouse areas.
Where is this distribution center located?
The property is located at 2801 North Interstate 35 Denton, TX.
What is the asking price?
The asking price for this property is $8,064,516.
What are key features of this property?
This property features: Approximately 78,432 SF building with approximately 24,718 SF of office space; Approximately 41,600 SF of covered dock area, excluded from total building SF; 11 dock positions equipped with levelers and lights
