Houston Highway Commercial
For Sale
$950,000
3208 Houston Hwy, Victoria, TX 77901
1.6-acre commercial property with retail, warehouse, and office space.
Property Size10,000 SF
Lot Size0.92 Acres
Price / SF$95
Days on Market167
Property Features for 3208 Houston Hwy
General Information
Standard status
Active
Size
10,000 SF
Lot size
0.92 Acres
Property subtype
Commercial
Building Details
Building Size
10,000 SF
Year Built
1950
Stories
1
Listing Agency:
CrossRoads Realty
(361) 573-4609
Listed By:
Robert D Rivera · License #0243200
(361) 573-4609
Source:
Elliman
Added: Mar 10
Changed: Aug 19
Last Checked: Aug 22 at 7:43AM
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 CrossRoads Realty
Investment Insights
Based on property information with market context.
Located on Houston Highway (US Business 59), this commercial property features a building of approximately 10,000 square feet with an attached 2,000-square-foot warehouse. The property has both front access from Houston Highway and rear access from Red River Street. Currently used as a retail rent-to-own business and a smoke shop, the building includes 4 to 6 offices and 3 bathrooms. The back area of the 1.602-acre property features a 3-bay metal shop, a metal building for scaffold storage, and a metal 4-car garage. The location is near shopping marts, fast food restaurants, hospitals, medical offices, and The University of Houston and dormitories. This property is suitable for retail, a strip center, medical or dental offices, dining, oil field-related businesses, or mixed-use development.
Key Highlights
- Prime commercial location on Houston Highway (US Business 59) with high visibility and traffic volume.
- Large 1.602‑acre property suitable for various developments.
- Approximately 10,000 SF building with an attached 2,000 SF warehouse.
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
$67,980
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
7.16%
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%
$1,359,600
$1.4M
Cap Rate 7%
$971,143
$971.1K
Cap Rate 9%
$755,333
$755.3K
Market Conditions
NOI Build-Up for 10,000 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
$123.6K $12.36/SF
− Vacancy
−$14.8K −$1.48/SF
EGI
$108.8K $10.88/SF
− OpEx
−$40.8K −$4.08/SF
NOI
$68.0K $6.80/SF
Area
Victoria County, TX
Vacancy
12.00%
Lease Rate
$12.36 /SF/Yr
Expense Ratio
37.50%
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%
$1,359,600
Cap Rate 7%
$971,143
Cap Rate 9%
$755,333
Alternative Uses
Best Use
Office B
$2.39M
$2.09M – $2.79M
NOI $167,270 @ 7.0% cap · market cap 17.61%
Second Best
Retail
$2.06M
$1.81M – $2.41M
NOI $144,497 @ 7.0% cap · market cap 15.21%
Theoretical Best
Multifamily LT 5
$109.86M
$96.13M – $128.17M
NOI $7,690,232 @ 7.0% cap · market cap 809.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
716
Businesses Nearby
Explore this area
Business Placement
Demographics for 77901, TX
40,062
Population
17,438
Households
2.3
Avg Household Size
35
Median Age
15%
College-Educated
76%
High-School Grad
18.1 sq mi
ZIP Area
2,213
Density / Sq Mi
$57,728
Median Household Income
$33,127
Median Earnings
$1,105
Median Rent
$133,900
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?
Retail space - 1.6-acre commercial property with retail, warehouse, and office space.
Where is this retail space located?
The property is located at 3208 Houston Hwy Victoria, TX.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Prime commercial location on Houston Highway (US Business 59) with high visibility and traffic volume.; Large 1.602‑acre property suitable for various developments.; Approximately 10,000 SF building with an attached 2,000 SF warehouse.
