Neighborhood Retail Development
For Sale
$395,000
3617 Buffalo Gap Road, Abilene, TX 79605
Commercial land with an existing home and separate retail building under Neighborhood Retail zoning.
Property Size2,743 SF
Days on Market8
Property Features for 3617 Buffalo Gap Road
General Information
Standard status
Active
Size
2,743 SF
Property subtype
Commercial
Zoning
Neighborhood Retail
Building Details
Building Size
2,743 SF
Year Built
1952
Units
2
Listing Agency:
Barnett & Hill
(325) 518-4329
Listed By:
Timothy Smith · License #0689037
(325) 518-4329
Source:
Vickiesteam
Added: Aug 12
Changed: Aug 13
Last Checked: Aug 18 at 12:10AM
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 Barnett & Hill
Investment Insights
Based on property information with market context.
This nearly half-acre commercial land parcel includes a residential home and a separate small retail building. Both improvements are identified under NR, or Neighborhood Retail, zoning, creating a mixed existing configuration within a commercial land offering. The residential structure and retail space may be renovated for office or neighborhood retail use, while the site also supports consideration of a broader redevelopment plan.
The retail building has frontage on Buffalo Gap Rd, where current daily traffic is approximately 20, 000 cars per day. The combination of existing improvements, commercial zoning, and roadway exposure provides a defined starting point for evaluating continued use or site redevelopment.
The retail building has frontage on Buffalo Gap Rd, where current daily traffic is approximately 20, 000 cars per day. The combination of existing improvements, commercial zoning, and roadway exposure provides a defined starting point for evaluating continued use or site redevelopment.
Key Highlights
- Just under .5 acres of commercial land
- Separate residential home and small retail building
- NR (neighborhood retail) zoning applies to both improvements
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
$28,081
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
7.11%
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%
$561,620
$561.6K
Cap Rate 7%
$401,157
$401.2K
Cap Rate 9%
$312,011
$312.0K
Market Conditions
NOI Build-Up for 2,743 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
$49.4K $18.00/SF
− Vacancy
−$4.4K −$1.62/SF
EGI
$44.9K $16.38/SF
− OpEx
−$16.8K −$6.14/SF
NOI
$28.1K $10.24/SF
Area
Abilene, TX
Vacancy
9.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$561,620
Cap Rate 7%
$401,157
Cap Rate 9%
$312,011
Alternative Uses
Best Use
Mixed Use
$401.2K
$351.0K – $468.0K
NOI $28,081 @ 7.0% cap · market cap 7.11%
Second Best
Retail
$333.1K
$291.5K – $388.6K
NOI $23,318 @ 7.0% cap · market cap 5.90%
Theoretical Best
Office A
$612.4K
$535.9K – $714.5K
NOI $42,870 @ 7.0% cap · market cap 10.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,037
Businesses Nearby
Explore this area
Business Placement
Demographics for 79605, TX
30,239
Population
12,795
Households
2.4
Avg Household Size
35
Median Age
25%
College-Educated
87%
High-School Grad
11.0 sq mi
ZIP Area
2,749
Density / Sq Mi
$59,565
Median Household Income
$33,537
Median Earnings
$1,077
Median Rent
$159,800
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?
Commercial land - Commercial land with an existing home and separate retail building under Neighborhood Retail zoning.
Where is this commercial land located?
The property is located at 3617 Buffalo Gap Road Abilene, TX.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: Just under .5 acres of commercial land; Separate residential home and small retail building; NR (neighborhood retail) zoning applies to both improvements
