McAllen Warehouse and Office
For Sale
Contact for pricing
3701 N Mccoll Road, McAllen, TX 78501
Centrally located McAllen property with warehouse and office space.
Property Size24,993 SF
Price / SF$95.99
Days on Market648
Property Features for 3701 N Mccoll Road
General Information
Standard status
Active
Size
24,993 SF
Total Parking Spaces
77
Property subtype
Industrial, Retail
Building Details
Year Built
1995
Listing Agency:
Star Properties Real Estate
(956) 664-2121
Listed By:
Arturo Latigo
Source:
Crexi
Added: Nov 20, 2024
Changed: Aug 15
Last Checked: Aug 29 at 11:34PM
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 McAllen property, situated in a central location south of Nolana and McColl, presents an investment opportunity. It comprises two buildings. The front building features 2,495 square feet of office space and 4,469 square feet of warehouse space, totaling 6,964 square feet. The second building is primarily warehouse space, offering 17,433 square feet, complemented by a 596-square-foot office. Truck wells are available for two semi-trailers and one step van dock. The front building is currently leased on a month-to-month basis. The total property size is 24,993 square feet.
Key Highlights
- Substantial warehouse space totaling 21,892 sq ft across two buildings.
- Prime central location in McAllen, south of Nolana and McColl.
- Includes office space in both buildings (2,495 sq ft and 596 sq ft).
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
$184,313
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%
$3,686,260
$3.7M
Cap Rate 7%
$2,633,043
$2.6M
Cap Rate 9%
$2,047,922
$2.0M
Market Conditions
NOI Build-Up for 24,993 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
$224.9K $9.00/SF
− Vacancy
−$8.1K −$0.32/SF
EGI
$216.8K $8.68/SF
− OpEx
−$32.5K −$1.30/SF
NOI
$184.3K $7.37/SF
Area
McAllen, TX
Vacancy
3.60%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
15.00%
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%
$3,686,260
Cap Rate 7%
$2,633,043
Cap Rate 9%
$2,047,922
Alternative Uses
Best Use
Warehouse
$2.63M
$2.30M – $3.07M
NOI $184,313 @ 7.0% cap · market cap 7.68%
Second Best
Flex RnD
$2.21M
$1.94M – $2.58M
NOI $154,845 @ 7.0% cap · market cap 6.45%
Theoretical Best
Office A
$6.79M
$5.94M – $7.92M
NOI $475,067 @ 7.0% cap · market cap 19.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,535
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Centrally located McAllen property with warehouse and office space.
Where is this flex space located?
The property is located at 3701 N Mccoll Road McAllen, TX.
What is the asking price?
The asking price for this property is $2,399,000.
What are key features of this property?
This property features: Substantial warehouse space totaling 21,892 sq ft across two buildings.; Prime central location in McAllen, south of Nolana and McColl.; Includes office space in both buildings (2,495 sq ft and 596 sq ft).
