East Austin Industrial-Style
For Sale
$2,275,000
3228 E 5th St, Austin, TX 78702
Industrial property in East Austin with development potential.
Property Size3,700 SF
Lot Size0.35 Acres
Price / SF$614.86
Days on Market156
Property Features for 3228 E 5th St
General Information
Standard status
Active
Size
3,700 SF
Lot size
0.35 Acres
Property subtype
Commercial
Building Details
Building Size
3,700 SF
Year Built
1980
Listing Agency:
3rd Angle Realty LLC
(512) 573-8804
Listed By:
Joshua Brunsmann · License #0639565
(512) 573-8804
Source:
Elliman
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 4:31AM
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 3rd Angle Realty LLC
Investment Insights
Based on property information with market context.
Located in the heart of East Austin, this property at 3228 E 5th Street offers an industrial-style building with visibility and access. The corner lot spans 15,246 square feet and features a 3,700-square-foot metal warehouse, currently operating as an auto repair shop. Zoned GR-MU-NP, the property allows for a range of commercial and mixed-use possibilities. It is located approximately 2.5 miles from Downtown Austin, 2.5 miles from Springdale General, and 6 miles from Austin-Bergstrom International Airport. The location provides access to major roadways. The property is surrounded by industrial, creative, and culinary destinations, and is located near local establishments such as Pueblo Viejo and Fleet Coffee’s mobile setup at Cosmic Saltillo. The property offers utility and future development potential.
Key Highlights
- Prime East Austin location with exceptional visibility and access.
- Versatile GR‑MU‑NP zoning allows for a wide range of commercial and mixed‑use possibilities.
- Generous 15,246 square foot corner lot.
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
$65,151
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
2.86%
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%
$1,303,020
$1.3M
Cap Rate 7%
$930,729
$930.7K
Cap Rate 9%
$723,900
$723.9K
Market Conditions
NOI Build-Up for 3,700 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
$96.3K $26.04/SF
− Vacancy
−$3.3K −$0.89/SF
EGI
$93.1K $25.15/SF
− OpEx
−$27.9K −$7.55/SF
NOI
$65.2K $17.61/SF
Area
Austin, TX
Vacancy
3.40%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
30.00%
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%
$1,303,020
Cap Rate 7%
$930,729
Cap Rate 9%
$723,900
Alternative Uses
Best Use
Retail
$930.7K
$814.4K – $1.09M
NOI $65,151 @ 7.0% cap · market cap 2.86%
Second Best
Industrial
$472.9K
$413.8K – $551.8K
NOI $33,105 @ 7.0% cap · market cap 1.46%
Theoretical Best
Office A
$1.45M
$1.27M – $1.69M
NOI $101,493 @ 7.0% cap · market cap 4.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,471
Businesses Nearby
72k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 87%
Shops & Services 13%
H-E-B
Groceries
58,141 visits/mo
0.5 miles
AutoZone
Shops & Services
7,413 visits/mo
0.5 miles
Twin Liquors
Groceries
4,670 visits/mo
0.5 miles
IBC Bank
Shops & Services
1,895 visits/mo
0.5 miles
Demographics for 78702, TX
25,910
Population
14,573
Households
1.8
Avg Household Size
34
Median Age
59%
College-Educated
91%
High-School Grad
5.0 sq mi
ZIP Area
5,182
Density / Sq Mi
$101,304
Median Household Income
$65,876
Median Earnings
$1,966
Median Rent
$644,200
Median Home Value
Market
Vacancy Rate% for Retail in Austin, TX
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Austin Truck & Trailer Repair — 4826 E Cesar Chavez St, Austin, TX 78702
- George Cox Automotive — 5225 E Cesar Chavez St, Austin, TX 78702
- Elias Auto Shop — 4701 red bluff rd, austin, tx 78702
- Happy Trails Automotive — 5000 E Cesar Chavez St, Austin, TX 78702
- Chewy Design Co. — 4909 E Cesar Chavez St a, Austin, TX 78702
Frequently Asked Questions
What type of property is this?
Auto shop - Industrial property in East Austin with development potential.
Where is this auto shop located?
The property is located at 3228 E 5th St Austin, TX.
What is the asking price?
The asking price for this property is $2,275,000.
What are key features of this property?
This property features: Prime East Austin location with exceptional visibility and access.; Versatile GR‑MU‑NP zoning allows for a wide range of commercial and mixed‑use possibilities.; Generous 15,246 square foot corner lot.
