Automotive Service
New
For Sale
$1,295,000
3405 Interstate 27, Lubbock, TX 79404
Existing commercial property suited to automotive service or retail operations.
Property Size3,725 SF
Price / SF$347.65
Days on Market3
Property Features for 3405 Interstate 27
General Information
Standard status
Active
Size
3,725 SF
Additional Details
Highway Access
Yes
Building Details
Year Built
1971
Listing Agency:
Exit Realty of Lubbock
Listed By:
Charles Camp · License #0505552
(806) 771-3900
Source:
Raftercrossrealty
Added: Sep 6
Last Checked: Sep 7 at 12:39PM
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 Exit Realty of Lubbock
Investment Insights
Based on property information with market context.
This automotive-oriented commercial property was built in 1971 and is identified for automotive service or retail use. The building is located at 3405 Interstate 27 in Lubbock, providing a clearly defined setting for an operator seeking an existing business location.
Key Highlights
- Automotive service or retail use supported
- Built in 1971
- Located at 3405 Interstate 27, Lubbock, TX 79404
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
$41,968
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
3.24%
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%
$839,360
$839.4K
Cap Rate 7%
$599,543
$599.5K
Cap Rate 9%
$466,311
$466.3K
Market Conditions
NOI Build-Up for 3,725 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
$64.8K $17.40/SF
− Vacancy
−$4.9K −$1.31/SF
EGI
$60.0K $16.10/SF
− OpEx
−$18.0K −$4.83/SF
NOI
$42.0K $11.27/SF
Area
Lubbock, TX
Vacancy
7.50%
Lease Rate
$17.40 /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%
$839,360
Cap Rate 7%
$599,543
Cap Rate 9%
$466,311
Alternative Uses
Best Use
Industrial
$599.5K
$524.6K – $699.5K
NOI $41,968 @ 7.0% cap · market cap 3.24%
Second Best
Retail
$514.1K
$449.8K – $599.7K
NOI $35,984 @ 7.0% cap · market cap 2.78%
Theoretical Best
Office A
$939.1K
$821.7K – $1.10M
NOI $65,736 @ 7.0% cap · market cap 5.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
614
Businesses Nearby
53k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 64%
Home Improvements & Furnishings 25%
Apparel 8%
Dining 3%
Harbor Freight Tools
Home Improvements & Furnishings
13,053 visits/mo
0.2 miles
Stripes
Shops & Services
11,859 visits/mo
0.1 miles
Phillips 66
Shops & Services
10,983 visits/mo
0.1 miles
Dollar General
Shops & Services
5,865 visits/mo
0.2 miles
Goodwill
Apparel
4,310 visits/mo
0.1 miles
Demographics for 79404, TX
9,956
Population
4,289
Households
2.3
Avg Household Size
38
Median Age
13%
College-Educated
73%
High-School Grad
28.5 sq mi
ZIP Area
349
Density / Sq Mi
$48,642
Median Household Income
$30,654
Median Earnings
$958
Median Rent
$86,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Martin's Auto Sales — 4412 Avenue Q, Lubbock, TX 79412
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- Crest Tires — 4303 Avenue Q, Lubbock, TX 79412
- Diesel Fuel Systems — 4311 I-27, Lubbock, TX 79404
- King's Tire Warehouse inc — 4301, I-27, Lubbock, TX 79404
Frequently Asked Questions
What type of property is this?
Auto shop - Existing commercial property suited to automotive service or retail operations.
Where is this auto shop located?
The property is located at 3405 Interstate 27 Lubbock, TX.
What is the asking price?
The asking price for this property is $1,295,000.
What are key features of this property?
This property features: Automotive service or retail use supported; Built in 1971; Located at 3405 Interstate 27, Lubbock, TX 79404
