Highway 281 Commercial
For Sale
Contact for pricing
2900 E US Highway 281, Hidalgo, TX 78557
Strip mall with restaurant, retail, office, and warehouse spaces.
Property Size8,360 SF
Price / SF$101.67
Days on Market1021
Property Features for 2900 E US Highway 281
General Information
Standard status
Active
Size
8,360 SF
Total Parking Spaces
20
Property subtype
Land, Retail, Industrial
Building Details
Year Built
2004
Listing Agency:
Dillard and Chapa Real Estate
(956) 271-2600
Listed By:
Daniel Chapa
Source:
Crexi
Added: Nov 11, 2023
Changed: Aug 24
Last Checked: Aug 26 at 9:24AM
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 Dillard and Chapa Real Estate
Investment Insights
Based on property information with market context.
This commercial property is a strip mall plaza located on Highway 281, situated between Hidalgo and Las Milpas. The property includes a restaurant, two retail or office spaces, and an approximately 5,000-square-foot warehouse. The total property size is 8,360 square feet.
Key Highlights
- Highway 281 Location: High‑visibility location on a major highway
- Mixed‑Use Property: Includes restaurant, retail/office spaces, and warehouse
- 5,000 SF Warehouse: Substantial warehouse space for storage or distribution
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
$53,419
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
6.28%
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%
$1,068,380
$1.1M
Cap Rate 7%
$763,129
$763.1K
Cap Rate 9%
$593,544
$593.5K
Market Conditions
NOI Build-Up for 8,360 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
$67.2K $8.04/SF
− Vacancy
−$4.4K −$0.52/SF
EGI
$62.8K $7.52/SF
− OpEx
−$9.4K −$1.13/SF
NOI
$53.4K $6.39/SF
Area
Hidalgo County, TX
Vacancy
6.50%
Lease Rate
$8.04 /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%
$1,068,380
Cap Rate 7%
$763,129
Cap Rate 9%
$593,544
Alternative Uses
Best Use
Office B
$2.00M
$1.75M – $2.33M
NOI $139,838 @ 7.0% cap · market cap 16.45%
Second Best
Specialty Retail
$1.73M
$1.52M – $2.02M
NOI $121,327 @ 7.0% cap · market cap 14.27%
Theoretical Best
Hotel Hospitality
$6.30M
$5.51M – $7.35M
NOI $440,781 @ 7.0% cap · market cap 51.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
194
Businesses Nearby
Explore this area
Business Placement
Demographics for 78557, TX
13,986
Population
4,141
Households
3.4
Avg Household Size
30
Median Age
23%
College-Educated
70%
High-School Grad
16.6 sq mi
ZIP Area
843
Density / Sq Mi
$53,667
Median Household Income
$32,109
Median Earnings
$849
Median Rent
$156,400
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?
Strip mall - Strip mall with restaurant, retail, office, and warehouse spaces.
Where is this strip mall located?
The property is located at 2900 E US Highway 281 Hidalgo, TX.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Highway 281 Location: High‑visibility location on a major highway; Mixed‑Use Property: Includes restaurant, retail/office spaces, and warehouse; 5,000 SF Warehouse: Substantial warehouse space for storage or distribution
