Retail Space with Adaptive
New
For Sale
$600,000
3409 Fannin Road, Melissa, TX 75454
CMU entitlement permits conversion to retail use.
Property Size1,120 SF
Price / SF$535.71
Days on Market4
Property Features for 3409 Fannin Road
General Information
Standard status
Active
Size
1,120 SF
Property subtype
Retail
Taxes and HOA fees
Annual Taxes
$4,233
Amenities
3
Building Details
Year Built
2003
Listing Agency:
Coldwell Banker Apex, REALTORS
(972) 562-5400
Listed By:
Sal Lopez
Source:
Xome
Added: Aug 31
Changed: Sep 2
Last Checked: Sep 2 at 2:18PM
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 Coldwell Banker Apex, REALTORS
Investment Insights
Based on property information with market context.
Built in 2003, this 1,120-square-foot property at 3409 Fannin Road is classified as retail space and carries a confirmed CMU entitlement. Retail conversion is permitted under the existing entitlement, supporting an adaptive reuse approach without rezoning.
The OLD TOWN future land use designation provides the planning framework identified for continued adaptive reuse. Potential applications cited for the property include a pet hotel, coffee shop, attorney’s office, hair salon, or day care. SH 121 traffic volumes have nearly doubled since 2018, with continued acceleration noted in the property information.
The OLD TOWN future land use designation provides the planning framework identified for continued adaptive reuse. Potential applications cited for the property include a pet hotel, coffee shop, attorney’s office, hair salon, or day care. SH 121 traffic volumes have nearly doubled since 2018, with continued acceleration noted in the property information.
Key Highlights
- 1,120‑square‑foot retail space built in 2003
- Confirmed CMU entitlement permits retail conversion
- OLD TOWN future land use designation
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
$18,021
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
3.00%
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%
$360,420
$360.4K
Cap Rate 7%
$257,443
$257.4K
Cap Rate 9%
$200,233
$200.2K
Market Conditions
NOI Build-Up for 1,120 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
$27.0K $24.12/SF
− Vacancy
−$1.3K −$1.13/SF
EGI
$25.7K $22.99/SF
− OpEx
−$7.7K −$6.90/SF
NOI
$18.0K $16.09/SF
Area
Collin County, TX
Vacancy
4.70%
Lease Rate
$24.12 /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%
$360,420
Cap Rate 7%
$257,443
Cap Rate 9%
$200,233
Alternative Uses
Best Use
Retail
$257.4K
$225.3K – $300.4K
NOI $18,021 @ 7.0% cap · market cap 3.00%
Second Best
—
—
no second resolved use
Theoretical Best
Industrial
$1.11M
$973.8K – $1.30M
NOI $77,903 @ 7.0% cap · market cap 12.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
311
Businesses Nearby
17k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 71%
Dining 29%
Dollar General
Shops & Services
5,644 visits/mo
0.3 miles
Exxon
Shops & Services
3,135 visits/mo
0.5 miles
AutoZone
Shops & Services
2,917 visits/mo
0.5 miles
SUBWAY
Dining
2,647 visits/mo
0.5 miles
Scooter's Coffee
Dining
1,379 visits/mo
0.3 miles
Demographics for 75454, TX
16,252
Population
6,289
Households
2.6
Avg Household Size
33
Median Age
51%
College-Educated
95%
High-School Grad
21.4 sq mi
ZIP Area
759
Density / Sq Mi
$135,556
Median Household Income
$64,368
Median Earnings
$2,262
Median Rent
$421,700
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - CMU entitlement permits conversion to retail use.
Where is this retail space located?
The property is located at 3409 Fannin Road Melissa, TX.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: 1,120‑square‑foot retail space built in 2003; Confirmed CMU entitlement permits retail conversion; OLD TOWN future land use designation
