Freestanding Flex Shop and
For Sale
$625,000
406 Gray St, Caldwell, TX 77836
Freestanding facility includes heated and cooled shop space with five bay doors plus about 1,000 SF of finished office.
Property Size7,200 SF
Price / SF$86.81
Days on Market312
Property Features for 406 Gray St
General Information
Standard status
Active
Size
7,200 SF
Property subtype
General Commercial
Amenities
Central Air
3
7 Parking Spaces. Concrete Driveway.
City
Building Details
Year Built
1978
Listing Agency:
(979) 777-5396
Listed By:
Armstrong Properties
(979) 777-5396
Source:
Xome
Added: Oct 1, 2025
Changed: Aug 7
Last Checked: Aug 8 at 3:59AM
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 Armstrong Properties
Investment Insights
Based on property information with market context.
This freestanding flex facility combines heated and cooled shop/warehouse space with finished office improvements. The shop/warehouse is spray-foam insulated and includes five bay doors and a mezzanine for storage, along with multiple power stations suitable for equipment, fabrication, or service operations. The office portion is approximately 1,000 SF and features three private offices, a conference room, reception and waiting areas, a kitchenette, a full bathroom, an IT closet, and a dedicated shop-manager workspace.
The property is located on a prominent corner within the city limits of Caldwell at the intersection of Hwy 21 and Gray Street, providing convenient access for customers, clients, and deliveries.
With a flexible interior layout and a mix of professional office space and functional shop capacity, the building is set up for day-to-day operations requiring both office administration and industrial service or fabrication capabilities.
The property is located on a prominent corner within the city limits of Caldwell at the intersection of Hwy 21 and Gray Street, providing convenient access for customers, clients, and deliveries.
With a flexible interior layout and a mix of professional office space and functional shop capacity, the building is set up for day-to-day operations requiring both office administration and industrial service or fabrication capabilities.
Key Highlights
- 7,200 SF freestanding commercial facility on the corner of Hwy 21 and Gray Street in Caldwell city limits
- About 1,000 SF of finished office space with 3 private offices, conference room, reception/waiting, kitchenette, and full bathroom
- Heated and cooled shop/warehouse totaling 4,720 SF, fully spray‑foam insulated
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
$52,436
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
8.39%
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%
$1,048,720
$1.0M
Cap Rate 7%
$749,086
$749.1K
Cap Rate 9%
$582,622
$582.6K
Market Conditions
NOI Build-Up for 7,200 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
$64.8K $9.00/SF
− Vacancy
−$3.1K −$0.43/SF
EGI
$61.7K $8.57/SF
− OpEx
−$9.3K −$1.29/SF
NOI
$52.4K $7.28/SF
Area
Burleson County, TX
Vacancy
4.80%
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%
$1,048,720
Cap Rate 7%
$749,086
Cap Rate 9%
$582,622
Alternative Uses
Best Use
Office B
$1.35M
$1.18M – $1.58M
NOI $94,689 @ 7.0% cap · market cap 15.15%
Second Best
Flex RnD
$932.7K
$816.1K – $1.09M
NOI $65,286 @ 7.0% cap · market cap 10.45%
Theoretical Best
Office A
$1.77M
$1.55M – $2.07M
NOI $124,105 @ 7.0% cap · market cap 19.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
390
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77836, TX
11,721
Population
5,990
Households
2
Avg Household Size
45
Median Age
22%
College-Educated
86%
High-School Grad
431.1 sq mi
ZIP Area
27
Density / Sq Mi
$79,567
Median Household Income
$45,291
Median Earnings
$869
Median Rent
$199,000
Median Home Value
Market
Vacancy Rate% for Office 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 - Freestanding facility includes heated and cooled shop space with five bay doors plus about 1,000 SF of finished office.
Where is this flex space located?
The property is located at 406 Gray St Caldwell, TX.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: 7,200 SF freestanding commercial facility on the corner of Hwy 21 and Gray Street in Caldwell city limits; About 1,000 SF of finished office space with 3 private offices, conference room, reception/waiting, kitchenette, and full bathroom; Heated and cooled shop/warehouse totaling 4,720 SF, fully spray‑foam insulated
