Medical Office Suite with
For Sale
$480,000
3001 23rd Street, McAllen, TX 78501
Well-appointed office suite with a reception area, multiple subdivided rooms, ADA-compliant restrooms, and ample storage.
Property Size2,967 SF
Price / SF$161.78
Days on Market91
Property Features for 3001 23rd Street
General Information
Standard status
Active
Size
2,967 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$9,616
Amenities
Central Air, Electric
3
14 Parking Spaces. Paved Driveway.
City Road.
Building Details
Year Built
2001
Listing Agency:
Pinnacle Realty Advisors
(956) 330-9012
Listed By:
Juan Iparrea · License #624291
(956) 330-9012
Source:
Xome
Added: May 10
Changed: Aug 8
Last Checked: Aug 8 at 3:59AM
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 Pinnacle Realty Advisors
Investment Insights
Based on property information with market context.
This medical or professional office suite is designed for an efficient workflow and includes a welcoming reception area, multiple subdivided offices or exam rooms, and a functional internal layout. The suite also provides ADA-compliant restrooms, a convenient area for day-to-day use, and ample storage.
The property is located at 3001 N 23rd Street Unit 6 in McAllen, Texas, positioned on a busy commercial corridor with high-traffic exposure and visibility.
The property is located at 3001 N 23rd Street Unit 6 in McAllen, Texas, positioned on a busy commercial corridor with high-traffic exposure and visibility.
Key Highlights
- Well‑appointed office suite with a welcoming reception area and multiple subdivided offices/exam rooms
- Includes ADA‑compliant restrooms plus an additional convenient area
- Central air and electric cooling
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
$39,721
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
8.28%
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%
$794,420
$794.4K
Cap Rate 7%
$567,443
$567.4K
Cap Rate 9%
$441,344
$441.3K
Market Conditions
NOI Build-Up for 2,967 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
$62.3K $21.00/SF
− Vacancy
−$9.3K −$3.15/SF
EGI
$53.0K $17.85/SF
− OpEx
−$13.2K −$4.46/SF
NOI
$39.7K $13.39/SF
Area
McAllen, TX
Vacancy
15.00%
Lease Rate
$21.00 /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%
$794,420
Cap Rate 7%
$567,443
Cap Rate 9%
$441,344
Alternative Uses
Best Use
Office B
$567.4K
$496.5K – $662.0K
NOI $39,721 @ 7.0% cap · market cap 8.28%
Second Best
Healthcare Medical
$549.3K
$480.7K – $640.9K
NOI $38,452 @ 7.0% cap · market cap 8.01%
Theoretical Best
Office A
$805.7K
$705.0K – $940.0K
NOI $56,397 @ 7.0% cap · market cap 11.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
649
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
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?
Medical Office Space - Well-appointed office suite with a reception area, multiple subdivided rooms, ADA-compliant restrooms, and ample storage.
Where is this medical office space located?
The property is located at 3001 23rd Street McAllen, TX.
What is the asking price?
The asking price for this property is $480,000.
What are key features of this property?
This property features: Well‑appointed office suite with a welcoming reception area and multiple subdivided offices/exam rooms; Includes ADA‑compliant restrooms plus an additional convenient area; Central air and electric cooling
