Unrestricted Commercial Land
For Sale
Contact for pricing
506 HWY 6 S, Houston, TX
Highway frontage and unrestricted land-use status support a range of commercial development concepts.
Property Size7,052 SF
Price / SF$219.09
Days on Market59
Property Features for 506 HWY 6 S
General Information
Standard status
Active
Size
7,052 SF
Class
C
Property subtype
Retail, Land, Special Purpose
Zoning
Unrestricted
Investment Type
Redevelopment
Building Details
Year Built
1985
Buildings
1
Stories
1
Units
1
Listing Agency:
Marcus & Millichap - Houston
Listed By:
Sebastian Davis · License #806053
Source:
Crexi
Added: Jul 5
Changed: Aug 29
Last Checked: Sep 1 at 1:33AM
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 Marcus & Millichap - Houston
Investment Insights
Based on property information with market context.
This 0.79-acre commercial land parcel at 506 HWY 6 S offers direct frontage along Highway 6 in Houston. The property is described as unrestricted, with development subject to deed restrictions, City ordinances, and site-specific conditions rather than conventional use-based zoning. Potential concepts identified for the site include drive-through food service, medical or dental office, financial services, and retail or personal-service uses.
Highway 6 carries 76,000+ VPD, while the surrounding area includes a substantial corporate employment base and established retail destinations. The property is positioned near CityCentre, Memorial City Mall, grocery-anchored centers, and regional healthcare systems. The source information identifies 42,769 people within 1 mile during the daytime, reflecting nearby office and commercial activity.
Highway 6 carries 76,000+ VPD, while the surrounding area includes a substantial corporate employment base and established retail destinations. The property is positioned near CityCentre, Memorial City Mall, grocery-anchored centers, and regional healthcare systems. The source information identifies 42,769 people within 1 mile during the daytime, reflecting nearby office and commercial activity.
Key Highlights
- 0.79‑acre commercial land parcel
- Direct frontage on Highway 6
- 76,000+ VPD on Highway 6
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
$108,530
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
7.02%
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%
$2,170,600
$2.2M
Cap Rate 7%
$1,550,429
$1.6M
Cap Rate 9%
$1,205,889
$1.2M
Market Conditions
NOI Build-Up for 7,052 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
$152.3K $21.60/SF
− Vacancy
−$7.6K −$1.08/SF
EGI
$144.7K $20.52/SF
− OpEx
−$36.2K −$5.13/SF
NOI
$108.5K $15.39/SF
Area
Houston, TX
Vacancy
5.00%
Lease Rate
$21.60 /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%
$2,170,600
Cap Rate 7%
$1,550,429
Cap Rate 9%
$1,205,889
Alternative Uses
Best Use
Specialty Retail
$1.55M
$1.36M – $1.81M
NOI $108,530 @ 7.0% cap · market cap 7.02%
Second Best
Healthcare Medical
$1.37M
$1.20M – $1.60M
NOI $95,964 @ 7.0% cap · market cap 6.21%
Theoretical Best
Office A
$1.81M
$1.59M – $2.12M
NOI $126,936 @ 7.0% cap · market cap 8.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,792
Businesses Nearby
Explore this area
Business Placement
Market
Vacancy Rate% for Office in Houston, TX
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - Highway frontage and unrestricted land-use status support a range of commercial development concepts.
Where is this commercial land located?
The property is located at 506 HWY 6 S Houston, TX.
What is the asking price?
The asking price for this property is $1,545,000.
What are key features of this property?
This property features: 0.79‑acre commercial land parcel; Direct frontage on Highway 6; 76,000+ VPD on Highway 6
