Versatile Cleveland Commercial
For Sale
$500,000
500 E Houston Street, Cleveland, TX 77327
2,800 sq. ft. building ideal for warehouse or office.
Property Size2,800 SF
Lot Size0.36 Acres
Price / SF$178.57
Days on Market184
Property Features for 500 E Houston Street
General Information
Standard status
Active
Size
2,800 SF
Lot size
0.36 Acres
Property subtype
Land or Vacant Lot
Taxes and HOA fees
Annual Taxes
$5,432
Listing Agency:
CAMERON REAL ESTATE
(281) 592-4442
Listed By:
ETHAN CAMERON · License #0632765
Source:
Corcoran
Added: Feb 5
Changed: Aug 8
Last Checked: Aug 8 at 2:01PM
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 CAMERON REAL ESTATE
Investment Insights
Based on property information with market context.
This 2,800 sq. ft. commercial building, constructed in 1990, is located in Cleveland, Texas. The property is suitable for warehouse operations, office space, or custom development. Its location provides convenient access to major thoroughfares. This property presents an opportunity for either utilizing the existing structure or embarking on a new development project.
Key Highlights
- Prime commercial location in Cleveland.
- Versatile 2,800 sq. ft. building suitable for warehouse, office, or development.
- Easy access to major thoroughfares.
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
$38,969
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
7.79%
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%
$779,380
$779.4K
Cap Rate 7%
$556,700
$556.7K
Cap Rate 9%
$432,989
$433.0K
Market Conditions
NOI Build-Up for 2,800 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
$71.6K $25.56/SF
− Vacancy
−$19.6K −$7.00/SF
EGI
$52.0K $18.56/SF
− OpEx
−$13.0K −$4.64/SF
NOI
$39.0K $13.92/SF
Area
Liberty County, TX
Vacancy
27.40%
Lease Rate
$25.56 /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%
$779,380
Cap Rate 7%
$556,700
Cap Rate 9%
$432,989
Alternative Uses
Best Use
Office B
$556.7K
$487.1K – $649.5K
NOI $38,969 @ 7.0% cap · market cap 7.79%
Second Best
Warehouse
$247.2K
$216.3K – $288.4K
NOI $17,305 @ 7.0% cap · market cap 3.46%
Theoretical Best
Multifamily LT 5
$31.39M
$27.47M – $36.62M
NOI $2,197,450 @ 7.0% cap · market cap 439.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
943
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77327, TX
32,269
Population
12,967
Households
2.5
Avg Household Size
33
Median Age
10%
College-Educated
75%
High-School Grad
339.1 sq mi
ZIP Area
95
Density / Sq Mi
$57,538
Median Household Income
$39,382
Median Earnings
$1,001
Median Rent
$144,100
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 - 2,800 sq. ft. building ideal for warehouse or office.
Where is this flex space located?
The property is located at 500 E Houston Street Cleveland, TX.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: Prime commercial location in Cleveland.; Versatile 2,800 sq. ft. building suitable for warehouse, office, or development.; Easy access to major thoroughfares.
