Multi-Office Office
For Sale
$871,500
3900 E Hwy 158, Midland, TX 79706
Commercial Sale, Midland, TX
Property Size5,000 SF
Lot Size1.07 Acres
Price / SF$174.30
Days on Market47
Property Features for 3900 E Hwy 158
General Information
Property type
Residential
Property subtype
Office
Subdivision
MG4
Standard status
Active
Size
5,000 SF
Lot size
1.07 Acres
Taxes and HOA fees
Tax Description
Legal: Acres: 1.070, BLK: 001. LOT: 001, ADDN: C & M VILLARREAL ADDITION
Tax Annual Amount
8648
Legal Description
Legal: Acres: 1.070, BLK: 001. LOT: 001, ADDN: C & M VILLARREAL ADDITION
Building Details
Year built
2015
Listing Agency:
The Real Estate Ranch LLC
(432) 688-8200
Listed By:
Thomas Johnston ABR /CNHS · License #542176
(512) 970-1610
Added: Jul 22
Changed: Sep 3
Last Checked: Sep 6 at 12:06AM
MLS# 50096957
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 office building was constructed in 2015 and contains 15 offices, along with 2-3 executive offices, a safety office, a flex foyer, and 3 bathrooms. The existing configuration provides a substantial administrative layout for office-based operations and was formerly used as a state office.
Located at 3900 E Hwy 158 in Midland, the property has direct access to Hwy 158 and sits about a mile from I-20. The corridor records approximately 20,000-25,000 VPD, providing exposure to passing traffic. The 1.07-acre property is served by a water well and septic system.
The stated use potential includes a trucking command center, doctors office, dispatch office, or land surveying office, subject to applicable requirements.
Located at 3900 E Hwy 158 in Midland, the property has direct access to Hwy 158 and sits about a mile from I-20. The corridor records approximately 20,000-25,000 VPD, providing exposure to passing traffic. The 1.07-acre property is served by a water well and septic system.
The stated use potential includes a trucking command center, doctors office, dispatch office, or land surveying office, subject to applicable requirements.
Key Highlights
- 15 offices plus 2‑3 executive offices
- 3 bathrooms, safety office, and flex foyer
- 1.07‑acre office property at 3900 E Hwy 158
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
$60,480
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
6.94%
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%
$1,209,600
$1.2M
Cap Rate 7%
$864,000
$864.0K
Cap Rate 9%
$672,000
$672.0K
Market Conditions
NOI Build-Up for 5,000 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
$96.0K $19.20/SF
− Vacancy
−$15.4K −$3.07/SF
EGI
$80.6K $16.13/SF
− OpEx
−$20.2K −$4.03/SF
NOI
$60.5K $12.10/SF
Area
Midland, TX
Vacancy
16.00%
Lease Rate
$19.20 /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%
$1,209,600
Cap Rate 7%
$864,000
Cap Rate 9%
$672,000
Alternative Uses
Best Use
Office B
$864.0K
$756.0K – $1.01M
NOI $60,480 @ 7.0% cap · market cap 6.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.18M
$1.03M – $1.38M
NOI $82,560 @ 7.0% cap · market cap 9.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
25,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
58
Businesses Nearby
Explore this area
Business Placement
Demographics for 79706, TX
31,805
Population
12,368
Households
2.6
Avg Household Size
32
Median Age
23%
College-Educated
87%
High-School Grad
689.5 sq mi
ZIP Area
46
Density / Sq Mi
$110,988
Median Household Income
$58,023
Median Earnings
$897
Median Rent
$280,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Built in 2015, the property offers multiple private offices, executive offices, and three bathrooms.
Where is this office building located?
The property is located at 3900 E Hwy 158 Midland, TX.
What is the asking price?
The asking price for this property is $871,500.
What are key features of this property?
This property features: 15 offices plus 2‑3 executive offices; 3 bathrooms, safety office, and flex foyer; 1.07‑acre office property at 3900 E Hwy 158
