Mixed-Use Property Near Houston
For Sale
$495,000
3505 Houston Hwy, Victoria, TX 77901
Three parcels with office, shop, warehouse, and vacant land.
Property Size10,646 SF
Lot Size0.78 Acres
Price / SF$265.99
Days on Market167
Property Features for 3505 Houston Hwy
General Information
Standard status
Active
Size
10,646 SF
Lot size
0.78 Acres
Property subtype
Commercial
Building Details
Building Size
10,646 SF
Year Built
1949
Stories
1
Listing Agency:
Woolson Real Estate, Inc.
(361) 571-0161
Listed By:
Nancy J Garner · License #0319521
(361) 571-0161
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 6:23AM
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 Woolson Real Estate, Inc.
Investment Insights
Based on property information with market context.
This property comprises three parcels totaling 0.78 acres, situated just off the intersection of Houston Highway/Business 59 and Sam Houston, across from Starbucks. Parcel 1, identified as Prop ID 42002, is fenced and equipped with gas, electric, and water services. It features three buildings with roofs dating back to 1998. Building 1 is an 865 sq ft office building. Building 2 is a 1861 sq ft shop. Building 3 is a warehouse with two truck-high docks with overhead doors and one ramp into the building. Buildings 1 and 2 will be vacant at the end of April 2025; the combined rent for both is $1338. Building 3 is leased until February 29, 2026, with a monthly rent of $1411. Parcel 2, identified as Prop ID 9800355, is a road easement. Parcel 3, identified as Prop ID 9800356, is a triangle of vacant land.
Key Highlights
- Prime location: Just off Houston Hwy/Business 59 and Sam Houston, across from Starbucks.
- Income potential: Building 3 is currently leased at $1411 per month until 02/29/2026.
- Three buildings included: Office building (865 sq ft), shop (1861 sq ft), and warehouse with truck docks.
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
$31,129
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
6.29%
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%
$622,580
$622.6K
Cap Rate 7%
$444,700
$444.7K
Cap Rate 9%
$345,878
$345.9K
Market Conditions
NOI Build-Up for 1,861 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
$57.2K $30.72/SF
− Vacancy
−$15.7K −$8.42/SF
EGI
$41.5K $22.30/SF
− OpEx
−$10.4K −$5.58/SF
NOI
$31.1K $16.73/SF
Area
Victoria County, TX
Vacancy
27.40%
Lease Rate
$30.72 /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%
$622,580
Cap Rate 7%
$444,700
Cap Rate 9%
$345,878
Alternative Uses
Best Use
Office B
$444.7K
$389.1K – $518.8K
NOI $31,129 @ 7.0% cap · market cap 6.29%
Second Best
Warehouse
$166.2K
$145.5K – $194.0K
NOI $11,637 @ 7.0% cap · market cap 2.35%
Theoretical Best
Multifamily LT 5
$20.45M
$17.89M – $23.85M
NOI $1,431,152 @ 7.0% cap · market cap 289.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
671
Businesses Nearby
Balanced
Demand for This Use
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Alamo Mini Storage - East — 201 Sam Houston Dr, Victoria, TX 77901
- CubeSmart Self Storage — 2110 N Ben Wilson St, Victoria, TX 77901
Frequently Asked Questions
What type of property is this?
Warehouse - Three parcels with office, shop, warehouse, and vacant land.
Where is this warehouse located?
The property is located at 3505 Houston Hwy Victoria, TX.
What is the asking price?
The asking price for this property is $495,000.
What are key features of this property?
This property features: Prime location: Just off Houston Hwy/Business 59 and Sam Houston, across from Starbucks.; Income potential: Building 3 is currently leased at $1411 per month until 02/29/2026.; Three buildings included: Office building (865 sq ft), shop (1861 sq ft), and warehouse with truck docks.
