Office Property with Private
New
For Sale
$424,900
3516 Buddy Owens, McAllen, TX 78504
Six enclosed offices, reception space, restrooms, and a breakroom create a practical workplace layout.
Property Size2,205 SF
Price / SF$192.70
Days on Market1
Property Features for 3516 Buddy Owens
General Information
Standard status
Active
Size
2,205 SF
Property subtype
Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
6 private offices with closets
reception and waiting area
restrooms
breakroom/kitchen
Building Details
Year Built
2007
Listing Agency:
Star Properties Real Estate
Listed By:
Jasen Hardison · License #801000304
(956) 458-1696
Source:
Ryanandbrian
Added: Sep 13
Last Checked: Sep 13 at 2:57PM
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 Star Properties Real Estate
Investment Insights
Based on property information with market context.
This office property includes six private offices, each paired with its own closet, along with a reception and waiting area. The interior also provides two separate restrooms and a breakroom with kitchen functionality, creating a defined arrangement for daily office operations. Constructed in 2007, the property offers a combination of enclosed work areas and shared support spaces.
The property is located at 3516 Buddy Owens in McAllen, Texas, just off Buddy Owens Boulevard. Access to Expressway 83, nearby shopping and commercial areas, and the Mission-McAllen corridor adds connectivity for employees, clients, and visitors.
The property is located at 3516 Buddy Owens in McAllen, Texas, just off Buddy Owens Boulevard. Access to Expressway 83, nearby shopping and commercial areas, and the Mission-McAllen corridor adds connectivity for employees, clients, and visitors.
Key Highlights
- Six private offices, each with an individual closet
- Reception and waiting area for clients and guests
- Two separate restrooms
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
$29,519
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
6.95%
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%
$590,380
$590.4K
Cap Rate 7%
$421,700
$421.7K
Cap Rate 9%
$327,989
$328.0K
Market Conditions
NOI Build-Up for 2,205 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
$46.3K $21.00/SF
− Vacancy
−$6.9K −$3.15/SF
EGI
$39.4K $17.85/SF
− OpEx
−$9.8K −$4.46/SF
NOI
$29.5K $13.39/SF
Area
McAllen, TX
Vacancy
15.00%
Lease Rate
$21.00 /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%
$590,380
Cap Rate 7%
$421,700
Cap Rate 9%
$327,989
Alternative Uses
Best Use
Office B
$421.7K
$369.0K – $492.0K
NOI $29,519 @ 7.0% cap · market cap 6.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$598.8K
$523.9K – $698.6K
NOI $41,913 @ 7.0% cap · market cap 9.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
424
Businesses Nearby
Explore this area
Business Placement
Demographics for 78504, TX
56,830
Population
21,417
Households
2.7
Avg Household Size
35
Median Age
40%
College-Educated
86%
High-School Grad
19.6 sq mi
ZIP Area
2,899
Density / Sq Mi
$77,627
Median Household Income
$41,632
Median Earnings
$1,178
Median Rent
$203,900
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office units - Six enclosed offices, reception space, restrooms, and a breakroom create a practical workplace layout.
Where is this office units located?
The property is located at 3516 Buddy Owens McAllen, TX.
What is the asking price?
The asking price for this property is $424,900.
What are key features of this property?
This property features: Six private offices, each with an individual closet; Reception and waiting area for clients and guests; Two separate restrooms
