Corner Industrial
For Sale
Contact for pricing
2925 Gholson Rd, Waco, TX 76704
M-3-zoned industrial land with IH-35 access and a documented prior cold-storage use.
Property Size15,895 SF
Price / SF$185.59
Days on Market138
Property Features for 2925 Gholson Rd
General Information
Standard status
Active
Size
15,895 SF
Property subtype
Industrial, Land
Zoning
M-3
Listing Agency:
Kelly Commercial
(254) 717-7234
Listed By:
Mike Meadows · License #TX 314300
Source:
Crexi
Added: Apr 15
Changed: Aug 29
Last Checked: Aug 29 at 10:52PM
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 Kelly Commercial
Investment Insights
Based on property information with market context.
This M-3-zoned industrial land occupies a corner location at 2925 Gholson Rd in Waco. The site previously supported cold-storage operations, providing relevant context for redevelopment planning.
The property is positioned along Lake Shore Dr near Gholson Rd and offers access to IH-35. A 2024 traffic count of 27,128 provides a measurable indicator of roadway activity at the location.
The property is positioned along Lake Shore Dr near Gholson Rd and offers access to IH-35. A 2024 traffic count of 27,128 provides a measurable indicator of roadway activity at the location.
Key Highlights
- M‑3 zoning
- Corner location at 2925 Gholson Rd and Lake Shore Dr
- 2024 traffic count of 27,128
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
$157,468
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
5.34%
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%
$3,149,360
$3.1M
Cap Rate 7%
$2,249,543
$2.2M
Cap Rate 9%
$1,749,644
$1.7M
Market Conditions
NOI Build-Up for 15,895 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
$200.3K $12.60/SF
− Vacancy
−$15.0K −$0.95/SF
EGI
$185.3K $11.66/SF
− OpEx
−$27.8K −$1.75/SF
NOI
$157.5K $9.91/SF
Area
Waco, TX
Vacancy
7.50%
Lease Rate
$12.60 /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%
$3,149,360
Cap Rate 7%
$2,249,543
Cap Rate 9%
$1,749,644
Alternative Uses
Best Use
Warehouse
$2.25M
$1.97M – $2.62M
NOI $157,468 @ 7.0% cap · market cap 5.34%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.19M
$3.67M – $4.89M
NOI $293,549 @ 7.0% cap · market cap 9.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
166
Businesses Nearby
Explore this area
Business Placement
Demographics for 76704, TX
7,220
Population
3,703
Households
1.9
Avg Household Size
35
Median Age
8%
College-Educated
78%
High-School Grad
5.4 sq mi
ZIP Area
1,337
Density / Sq Mi
$24,208
Median Household Income
$24,363
Median Earnings
$788
Median Rent
$112,800
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?
Industrial land - M-3-zoned industrial land with IH-35 access and a documented prior cold-storage use.
Where is this industrial land located?
The property is located at 2925 Gholson Rd Waco, TX.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: M‑3 zoning; Corner location at 2925 Gholson Rd and Lake Shore Dr; 2024 traffic count of 27,128
