Building Details

Year built 2003

Listing Agency: The Real Estate Ranch LLC Show Phone

Listed By: Morgan Luce · License #0542176 Show Phone

Added: Jun 8 Changed: Sep 3 Last Checked: Sep 14 at 7:06AM

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MLS# 50095795

Copyright © 2026 Permian Basin Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This industrial flex property includes a main shop, additional office and storage buildings, and a separate shop for fabrication or equipment-oriented operations. The office component provides 7 offices, a reception area, 2 conference rooms, a break room, storage, and 3 restrooms. Shop features include (2) 12' roll-up doors, air lines, gas heat, abundant 110V power, and 30-amp service.

Additional improvements include a 14' motorized roll-up door, upper-level storage, a 1-ton crane beam, and a separate shop with a 2.5-ton overhead crane. The property also has a private water well with 1,500-gal storage and occupies 3 acres at 3611 Hwy 158 in Midland. Built in 2003, the facility offers a substantial combination of office, shop, storage, utility, and lifting infrastructure.

Key Highlights

• 3‑acre industrial flex property at 3611 Hwy 158 in Midland
• Office layout includes 7 offices, 2 conference rooms, reception, break room, storage, and 3 restrooms
• Main shop has (2) 12' roll‑up doors, air lines, gas heat, abundant 110V power, and 30‑amp service

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

$145,968

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

7.68%

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%

$2,919,360 $2.9M

Cap Rate 7%

$2,085,257 $2.1M

Cap Rate 9%

$1,621,867 $1.6M

Market Conditions

NOI Build-Up for 16,273 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

$220.7K $13.56/SF

− Vacancy

−$12.1K −$0.75/SF

EGI

$208.5K $12.81/SF

− OpEx

−$62.6K −$3.84/SF

NOI

$146.0K $8.97/SF

Area

Midland, TX

Vacancy

5.50%

Lease Rate

$13.56 /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%

$2,919,360

Cap Rate 7%

$2,085,257

Cap Rate 9%

$1,621,867

Alternative Uses

Best Use

Office B

$2.81M

$2.46M – $3.28M (±1% cap)

NOI $196,838 @ 7.0% cap · market cap 10.36%

Second Best

Industrial

$2.09M

$1.82M – $2.43M (±1% cap)

NOI $145,968 @ 7.0% cap · market cap 7.68%

Theoretical Best

Office A

$3.84M

$3.36M – $4.48M (±1% cap)

NOI $268,700 @ 7.0% cap · market cap 14.14%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Flex space

Suggested Use

Top Pick Electrical Service HVAC Service Bakery Garden Center Catering Service Parking Lot & Garage

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Yes

Utilities to site

Location Intelligence

Trade Area within ½ mile

85

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 79705, TX

44,138

Population

20,021

Households

2.2

Avg Household Size

33

Median Age

40%

College-Educated

91%

High-School Grad

79.4 sq mi

ZIP Area

556

Density / Sq Mi

$105,106

Median Household Income

$60,415

Median Earnings

$1,431

Median Rent

$329,300

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this flex space located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - Multi-building industrial configuration includes office areas, shops, storage, and overhead lifting equipment.

Where is this flex space located?

The property is located at 3611 Hwy 158 Midland, TX.

What is the asking price?

The asking price for this property is $1,900,000.

What are key features of this property?

This property features: 3‑acre industrial flex property at 3611 Hwy 158 in Midland; Office layout includes 7 offices, 2 conference rooms, reception, break room, storage, and 3 restrooms; Main shop has (2) 12' roll‑up doors, air lines, gas heat, abundant 110V power, and 30‑amp service