Configured Office
For Sale
$327,000
505 W Nolana Ave, McAllen, TX 78504
Office space includes private rooms, built-in workstations, a conference area, kitchen, restrooms, shower, and covered patio.
Property Size1,500 SF
Price / SF$218
Days on Market14
Property Features for 505 W Nolana Ave
General Information
Standard status
Active
Size
1,500 SF
Additional Details
Furnished
Yes
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$3,553
Amenities
separate restrooms
full shower
kitchen area
covered outdoor patio
Listing Agency:
Blue Diamond Realty Group LLC
Listed By:
Katty Valdez
(956) 467-2120
Source:
Exprealty
Added: Aug 31
Changed: Sep 10
Last Checked: Sep 13 at 3:23PM
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 Blue Diamond Realty Group LLC
Investment Insights
Based on property information with market context.
This office unit at 505 W Nolana Avenue in McAllen is arranged for immediate business use, with built-in desks, private office areas, and a conference table. The layout also includes separate restrooms, a full shower, a kitchen area, and a covered outdoor patio. These improvements support professional services, including real estate, insurance, legal, accounting, medical, and wellness-related operations where permitted.
The property sits on W Nolana Avenue near 10th Street, Bicentennial Boulevard, and Expressway 281, providing access to several established thoroughfares. Its existing office infrastructure and range of practical amenities accommodate both employee functions and client-facing activity.
The property sits on W Nolana Avenue near 10th Street, Bicentennial Boulevard, and Expressway 281, providing access to several established thoroughfares. Its existing office infrastructure and range of practical amenities accommodate both employee functions and client-facing activity.
Key Highlights
- Built‑in office desks and private office areas
- Conference table, kitchen area, separate restrooms, and full shower
- Covered outdoor patio included
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
$20,081
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
6.14%
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%
$401,620
$401.6K
Cap Rate 7%
$286,871
$286.9K
Cap Rate 9%
$223,122
$223.1K
Market Conditions
NOI Build-Up for 1,500 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
$31.5K $21.00/SF
− Vacancy
−$4.7K −$3.15/SF
EGI
$26.8K $17.85/SF
− OpEx
−$6.7K −$4.46/SF
NOI
$20.1K $13.39/SF
Area
McAllen, TX
Vacancy
15.00%
Lease Rate
$21.00 /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%
$401,620
Cap Rate 7%
$286,871
Cap Rate 9%
$223,122
Alternative Uses
Best Use
Office B
$286.9K
$251.0K – $334.7K
NOI $20,081 @ 7.0% cap · market cap 6.14%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$407.3K
$356.4K – $475.2K
NOI $28,512 @ 7.0% cap · market cap 8.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,522
Businesses Nearby
Explore this area
Business Placement
Demographics for 78504, TX
56,830
Population
21,417
Households
2.7
Avg Household Size
35
Median Age
40%
College-Educated
86%
High-School Grad
19.6 sq mi
ZIP Area
2,899
Density / Sq Mi
$77,627
Median Household Income
$41,632
Median Earnings
$1,178
Median Rent
$203,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office units - Office space includes private rooms, built-in workstations, a conference area, kitchen, restrooms, shower, and covered patio.
Where is this office units located?
The property is located at 505 W Nolana Ave McAllen, TX.
What is the asking price?
The asking price for this property is $327,000.
What are key features of this property?
This property features: Built‑in office desks and private office areas; Conference table, kitchen area, separate restrooms, and full shower; Covered outdoor patio included
